Longyuan Quarterly Profit Rises on Increased Wind-Power Sales
China Longyuan Power Group Corp. (916)’s third-quarter profit rose 30 percent as the nation’s biggest wind-power producer sold more electricity from the clean source.
Net income rose to 260 million yuan ($41.6 million) in the three months ended Sept. 30 from 200 million yuan a year earlier, according to calculations based on nine-month results released today through the Hong Kong stock exchange. Sales from the wind-power business rose 43 percent to 1.7 billion yuan.
Longyuan reported a profit even as competitors struggled with China’s tightening of the approval process for wind farms in order to match the amount of electricity from renewables to the grid’s capacity to handle the influx of power. China is expected to install 18.6 gigawatts of wind farms this year, 7 percent less than 2011, according to Bloomberg New Energy Finance.
China Datang Corp. Renewable Power Co. (1798), a wind-farm developer, on Oct. 30 posted a loss of 8.56 million yuan in the first nine months.
Wind-power generation rose 23 percent to 11.8 billion kilowatt-hours in the first nine months of the year, Beijing- based Longyuan said. Electricity from other renewable power projects more than tripled to 452 million kilowatt-hours, while coal power generation and sales fell.
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