China Windpower Sees ‘Significant’ Profit Drop on Sales, OutputSally Bakewell
China Windpower Group Ltd. expects to post a “significant drop” in 2012 profit on waning growth in sales of stakes in projects and income from electricity output.
It reported profit of HK$372 million ($48 million) in 2011.
“The significant drop in net profit is mainly due to the decrease in the gain on disposal of interests in our investments in our wind power projects, and the decrease in the income from the electricity output generated by certain jointly controlled entities,” Hong Kong-based China Windpower said in a statement.
Expansion of China’s wind industry slowed in 2011 after the government curbed approvals for farms to ease grid congestion. Installations probably slid 20 percent to 16.4 gigawatts last year, the first annual drop, Bloomberg New Energy Finance said.
China Windpower, which also makes equipment, saw first-half profit drop 90 percent to HK$24.8 million as the growth in demand for electricity slowed and approvals became harder. The company expects to release its full-year earnings in March.