China Longyuan Profit Doubled in 2010 as Wind Energy Capacity Increases
China Longyuan Power Group Corp. (916)’s profit more than doubled last year as the country’s biggest wind developer by market capitalization increased capacity at home and said it would prioritize projects abroad.
Net income rose to 2.02 billion yuan ($307 million) in 2010 from 894 million yuan a year earlier as revenue increased 46 percent, the company said today in a statement to the Hong Kong stock exchange. That compares with a 1.86 billion-yuan profit estimate in a survey of 20 analysts compiled by Bloomberg.
China Longyuan shares rose as much as 3.3 percent to 7.31 yuan today. The stock is up 2.5 percent so far this year.
The Beijing-based company said it installed 2.05 gigawatts of wind energy capacity last year, bringing its capacity to 7 gigawatts. A total of 14 gigawatts of wind turbines were installed in China last year.
For 2011, China Longyuan aims to commission another 2 gigawatts in wind projects in the country while prioritizing its participation in projects abroad.
“We will proactively push forward our wind power development in South Africa whilst fostering the preliminary work of our projects in North America and Eastern Europe,” the company said in the statement.
China, which has the world’s largest wind energy capacity, is raising its target for 2015 by 10 gigawatts, indicating total installations of 100 gigawatts, according to a March 5 document distributed to reporters at the opening of the National People’s Congress meeting.
The developer, listed since 2009, also plans to start construction on its first offshore wind projects and develop more solar parks after building its two initial photovoltaic plants last year.
China Longyuan has a pipeline of offshore wind farms under planning of 4,450 megawatts and plans for solar energy projects with as much as 1,950 megawatts, according to the statement.
The group’s average procurement costs for wind turbines fell 15 percent year-on-year, it said.
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