Zhejiang Power posts 33pc gain

PUBLISHED : Wednesday, 01 April, 1998, 12:00am
UPDATED : Wednesday, 01 April, 1998, 12:00am

Zhejiang Southeast Electric Power - which has a dual listing in London and Shanghai - posted a 33 per cent rise in net profit to 458.98 million yuan (about HK$426.85 million) last year, from 344.2 million yuan on increased sales.

Its B shares were listed in Shanghai in September.

The maiden results were in line with its own forecast of 450 million yuan made last year.

Sales rose 14.1 per cent to 1.73 billion yuan, from 1.51 billion yuan a year ago.

Earnings per share were 30 fen, against 26 fen for the last corresponding period.

Last year, the Hangzhou-based company sold 369.6 megawatts of electricity on-grid on the back of coastal Zhejiang province's rising affluence.

New power projects coming on stream prompted the company to project a doubling of its on-grid electricity output to 740 MW this year.

Zhejiang Southeast owns Taizhou Power Plant generating units one to eight, with an installed capacity of 1,410 MW, and the Xiaoshan Power Plant, with 250 MW, bringing its total capacity to 1,660 MW.

The company expects Taizhou's number eight generating unit to commence commercial operation in June this year.

It also expected unit seven and eight of Taizhou Power Plant and Xiaoshan Power plant to fuel this year's earnings growth.

Of the listing proceeds of US$230 million, a company official said between 800 million yuan and 900 million yuan was still unused.

This year, the company said it would further increase investment in power plants as part of a strategy to expand its power generating capacity within Zhejiang.

A company official said its investment plans for the next five years were to acquire stakes in Jiaxing power plant phase one, Wenzhou power plant phase one and Changxing power plant phase four.