Datang sees 40GW nationwide supply shortfall
Despite a slowing economy, this year China could see a national power shortage of up to 40 gigawatts - roughly Singapore's annual consumption - a senior power company executive says.
Power demand would grow 9.5 per cent this year, compared with 12 per cent last year, said Liu Yan, corporate finance director of Datang International Power Generation.
'The national power supply will still be tight in 2012, with power shortages in some regions. This will benefit power companies like us,' he said.
Datang, listed in Hong Kong, Shanghai and London, is mainland China's second-largest independent power producer. Although its operating revenue rose 19 per cent to 72.4 billion yuan (HK$88.7 billion) last year, its net profit fell 23 per cent to just under 2 billion yuan due to high coal prices, Liu said.
The National Development Reform Commission would continue to control coal prices this year, he said, meaning coal would be cheaper.
Datang's net profit last year beat a Bloomberg consensus estimate of 1.65 billion yuan by 17 analysts.
At the end of last year, coal power accounted for 84 per cent of Datang's energy capacity, hydropower 12.5 per cent, wind 3.3 per cent and solar less than 0.1 per cent.
By 2015, Datang's proportion of coal power capacity would decrease to 80 per cent, while wind power would rise to 4 per cent and nuclear energy to 6.7 per cent, Datang vice-chairman Cao Jingshan said.
Datang's installed energy capacity will rise from 38.5GW at the end of 2011 to 60GW in 2015, including 4GW of nuclear, Cao predicted.
Datang's first nuclear power plant would open in Ningde, Fujian province, this year, Liu said. Datang's Duolun coal chemical project, which will produce polypropylene chemical products, and its Keqi coal-based natural gas facility, would also start this year. 'In three to four years, Datang's structural transformation from a pure coal-fired power generator to a comprehensive energy company will be realised,' Liu said.
Datang will pay a final dividend of 0.11 yuan per share.