Wind, solar help Huadian Fuxin offset coal, hydro profit drop

Wind farm in China. Author: Land Rover Our Planet. License: Creative Commons. Attribution-NoDerivs 2.0 Generic

Higher wind and solar operating profits in the first half of 2017 in part offset a sharp drop in profits from Huadian Fuxin Energy Corp’s (HKG:0816) hydro and coal-fired power plants.

The Chinese power company, which has 15 GW of capacity, on Friday reported a profit attributable to the equity owners of CNY 1.45 billion (USD 220.5m/EUR 184m), up by 0.6% year-on-year. Meanwhile, profit attributable to non-controlling interests fell by 43.6% to CNY 238.2 million due to the drop in hydropower profits.

Details on performance in the first half are available in the table.

Results in CNY million, unless specified	H1 2017	H1 2016
Revenue	7,951.8	8,189
- of which wind	3,081	2,822
- of which coal-fired power	1,896	1,506
- of which hydro	1,478	2,218
Operating profit	2,846.3	3,404.6
- of which wind	1,620.5	1,467
- of which coal-fired power	4.7	144.8
- of which hydro	843.5	1,548
- of which solar	289.8	237
- of which natural gas-fired power	124.5	124.9
Profit before tax	1,901.5	2,263.3
Profit to equity shareholders	1,487.8	1,374.3
Profit to non-controlling interests	238.2	422.4

Huadian Fuxin had 7.4 GW of wind, 3.6 GW of coal-fired power, 2.5 GW of hydro and 1 GW of solar power plants at the end of June. Its new chairman Huang Shaoxiong recently told the South China Morning Post that parent company China Huadian Group is likely to inject certain wind and solar power assets into the unit this or next year.

In the first half of 2017, the company produced 20,114.4 GWh of power, down by 3.8% on the year. Hydropower plants produced 33.4% less than a year ago, while wind and coal-fired power generation was up by 11.3% and 21.5%, respectively.

(CNY 10 = USD 1.52/EUR 1.27)

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