China Longyuan Profit Rises as Wind Power Generation IncreasesBloomberg News
China Longyuan Power Group Corp., the nation’s biggest wind-farm developer, reported a 25 percent jump in full-year profit as wind power generation increased.
Net income was 2.56 billion yuan ($412 million) in 2014, compared with 2.05 billion yuan the previous year, the Beijing-based company said in a filing to the Hong Kong stock exchange on Tuesday. The mean estimate of 12 analysts compiled by Bloomberg was for a profit of 2.45 billion yuan. Sales dropped 4.9 percent to 18.2 billion yuan.
“With improvements in quality and speed of project construction, the target for the wind power production was accomplished,” Longyuan said in the statement. That laid down a “solid foundation for us to become the world’s largest wind power operator in 2015,” it said.
Chinese project developers rushed to install wind turbines last year ahead of a cut in preferential power prices, spurring a record addition of 21 gigawatts. This surpassed the previous high of 18 gigawatts installed in 2011, according to data compiled by Bloomberg.
Wind-power generation at the company rose 5.3 percent last year to 23,088 gigawatt-hours, Longyuan said in January. This countered a reduction in its power output from coal-fired power plants and other renewable energy sources.
The company saw the biggest increase in wind power output in Tibet as well as in Shandong and Yunnan provinces, according to the Jan. 8 statement.
The stock fell 0.6 percent to close at HK$8.09 in Hong Kong trading before the earnings announcement.
— With assistance by Feifei Shen, and Kana Nishizawa