Longyuan First-Quarter Profit Rises on Higher Wind-Power OutputBloomberg News
China Longyuan Power Group Corp., the nation’s biggest wind-farm developer, reported a 13 percent gain in first-quarter earnings as wind-power generation rose.
Net income climbed to 624 million yuan ($101 million) from 551 million yuan a year earlier, the company said in a filing to the Hong Kong stock exchange. A 33 percent jump in wind-power output drove sales up 8.9 percent to 4.42 billion yuan.
Longyuan has benefited from China’s decision to tighten approval of new wind projects to ease grid congestion. The move to slow development in the worst-affected areas has allowed existing wind farms to operate closer to their installed capacity. The company’s higher wind-power production countered a decline in output at its other renewable-energy and coal plants.
Utilization rates recovered in China in the first quarter, when wind-power generation grew more than 45 percent from a year earlier, Karl Liu, a Hong Kong-based analyst at ICBC International Research Ltd., wrote in an April 19 report. “We expect that the sector is likely to outperform this year on improved fundamentals.”
The National Energy Administration excluded the Jilin, Inner Mongolia and Heilongjiang provinces from new wind-farm permits in March because of overloaded grids in the regions. The NEA said it will work to improve network connections.
China Datang Corp. Renewable Power Co., a state-owned competitor of Beijing-based Longyuan, yesterday reported a 79 percent surge in quarterly earnings to 155 million yuan.
— With assistance by Feifei Shen