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Datang International Power

China Datang profit up 36pc on capacity surge

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Eric Ng

China Datang Group, the parent of listed Datang International Power Generation, posted a 36.1 per cent jump in profit to 7.55 billion yuan - thanks to fast capacity expansion and stronger than average demand in its operating regions.

The group did not specify whether the profit was on a pre-tax or after-tax basis.

Turnover climbed 21.4 per cent to 85.37 billion yuan on 21 per cent growth in generation volume to 304.8 billion kilowatt-hours, outstripping the national increase of 14.4 per cent to 3.25 trillion kWh. Total generation capacity surged 18 per cent to 64,823 megawatts, faster than the 14.4 per cent national average.

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Utilisation of its plants grew 1.68 per cent to 5,379.14 hours, bucking the 3.6 per cent decline in the national average to 5,011 hours, according to China Electricity Council figures.

China Datang benefited from a 28.6 per cent jump in power demand growth in Inner Mongolia, the second-fastest after Guangxi's 29.4 per cent.

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About 25 per cent of listed subsidiary Datang Power's capacity is located in the coal-rich region that exports substantial power to the Beijing-Tianjin-Tangshan market.

Higher usage meant more fixed costs such as depreciation can be borne by the same amount of sales, hence augmenting profit margin.

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