CGN Power’s Profit Rises 3.4% on Higher China Power GenerationBy
Total revenue increased 36.3 percent to 13.1 billion yuan
On-grid power generation rose 32 percent with new unit online
CGN Power Co., China’s biggest nuclear power operator, posted a 3.4 percent increase in profit for the first half of the year on higher power generation, beating a slowdown in an industry that’s seeing demand growth slip with the country’s slowing economy.
Profit rose to 3.6 billion yuan ($541 million) from 3.48 billion yuan a year ago, the Shenzhen, Guangdong-based company said in a statement to the Hong Kong stock exchange on Wednesday. Revenue rose 36.3 percent to 13.1 billion yuan.
China’s total power output rose 1 percent in the first half as the world’s second-biggest economy grew at 6.7 percent. CGN Power’s electricity generation increased 32 percent in the first six months on newly added capacity, the company said.
China has committed to boosting nuclear power, which accounted for about 1.7 percent of its total generation last year, to help reduce reliance on coal, which accounts for almost two-thirds of the country’s primary energy. The government aims to nearly double its nuclear power capacity to 58 gigawatts by 2020.
“We believe that, in order to fulfill the Chinese government’s commitment to address climate change, China has to devote more efforts in developing clean energies such as nuclear power,” CGN Power said in its earnings statement.
The global ambitions of CGN Power’s state-owned parent company took a hit after the U.K. said it’s reconsidering a plan to build the 18 billion-pound ($23.9 billion) Hinkley Point nuclear-power facility. China General Nuclear Power Corp. agreed last year to pay for about one-third of the project, with the possibility to build one of its home-grown reactors in southern England. One of Prime Minister Theresa May’s advisers, Nick Timothy, warned last year that China’s involvement might allow it to “shut down Britain’s energy production at will.”
China General Nuclear has partnered with China National Nuclear Corp. to export the domestically developed Hualong One nuclear reactor. China plans to add around 30 nuclear power units in various countries by 2030, CNNC chairman Sun Qin said this year, according to China Daily.
— With assistance by Stephen Stapczynski