Datang Power 2010 Net Profit Rises by 67% to RMB2,570 Million

Focusing in Power Generation whilst Pursuing Synergistic Diversifications

Mar 23, 2011, 08:39 ET from Datang International Power Generation Co., Ltd.

HONG KONG, March 23, 2011 /PRNewswire-Asia/ --

Financial Highlights

  • Operating revenue amounted to approximately Rmb60,672 million, representing an increase of approximately 26.55% over the Previous Year.
  • Net profit attributable to equity holders of the Company amounted to approximately Rmb2,570 million, an increase of approximately 67.24% year-on-year.
  • Basic earnings per share attributable to equity holders of the Company amounted to approximately Rmb0.21, an increase of Rmb0.08 per share year-on-year.
  • The board of directors has recommended the distribution of a proposed final dividend of Rmb0.07 per share (tax included) for the year of 2010.

Datang International Power Generation Co., Ltd. ("Datang Power" or the "Company") (HKEx: 991; SSE: 601991; LSE: DAT; ADR: DIPGY) announced the audited consolidated operating results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2010 (the "Year").

Operating revenue of the Group for the Year was approximately Rmb60,672 million, representing an increase of approximately 26.55% over 2009 (the "Previous Year"). Net profit attributable to equity holders of the Company was approximately Rmb2,570 million, representing an increase of approximately 67.24% year-on-year. Basic earnings per share attributable to equity holders of the Company amounted to approximately Rmb0.21, representing an increase of Rmb0.08 per share year-on-year. The board of directors of the Company has recommended the distribution of a proposed final dividend of Rmb0.07 per share (tax included) for the year of 2010 (Previous Year: Rmb0.07 per share).

Mr. Liu Shunda, Chairman of Datang Power, said, "In 2010, China's overall economy operated with a good momentum and both power generation and power consumption nationwide re-climbed at an accelerated rate. However, the Company was still impacted by unfavourable factors such as soaring coal prices lingering at high levels and an inability to realise tariff adjustments. Faced with such a tough operating environment, the Company took initiatives in strengthening internal management and at the same time creating a favourable external environment, rigorously enhancing production and operation. The Company's power generation business has been developing at a stable and fast pace, thereby enabling its profit to maintain significant growth."

During the Year, total power generation of the Group amounted to 178.4781 billion kWh, representing an increase of 25.81% over the Previous Year. Total on-grid power generation of the Group amounted to 168.2278 billion kWh, representing an increase of 25.96%. The increases in total power generation and on-grid power generation were mainly attributable to an increase in capacity of operational generating units of the Group, the safe and stable operation of the generating units as well as a steadily increasing power demand.

During the Year, a total of new capacity of 5,558.5MW of generating units commenced operation. Of such new capacities, coal-fired projects included Chaozhou Power Generation Company, Zhangjiakou Thermal Power Company and Lvsigang Power Company with new capacities totaling 4,940MW; hydropower projects included Wenshan Hydropower Development Company and Yuneng Group Company with new capacity totaling 474.23 MW; and wind power projects included Zuoyun Wind Power Company, Inner Mongolia Wind Power Company and Wulong Wind Power Company with new capacities totaling 144.25MW. Consolidated utilisation hours stood at 4,998 hours, representing an increase of 91 hours year-on-year.  

The Company made steady progress in energy savings and emissions reduction. During the Year, coal consumption for power supply was 323.59 g/kWh, representing a decrease of approximately 2.92 g/kWh over the Previous Year. Consolidated electricity consumption rate of power plants was 5.82%, a decrease of 0.03% percentage-point year-on-year. The desulphurisation facilities operation rate and the overall desulphurisation efficiency rate amounted to 99.20% and 93.61%, respectively. The coal-fired generating units of the Group continued to achieve a desulphurisation facilities installation rate of 100%. The emission rates of sulphur dioxide, nitrogen oxides, smoke ash and waste water decreased by 5.34%, 9.40%, 14.52% and 43.44% year-on-year to 0.420g/kWh, 1.396g/kWh, 0.126g/kWh and 75g/kWh, respectively, which are lower than the national average levels.

During the Year, the Company achieved significant progress in construction and preliminary works, with 7 power projects of a total capacity of 6,093.5MW being approved by the State.

In addition, the Company continued to push ahead its expansion in power-related upstream and downstream projects. Phase 1 of the Shengli Coal Mine East Unit 2 has been completed and the annual production capacity amounted to 10 million tonnes; and the Phase 2 project was approved with an annual production capacity of 20 million tonnes. In addition, the Company completed the acquisition of 70% equity interests in Inner Mongolia Baoli Coal Company Limited, and produced 1.92 million tonnes of coal products in 2010. Meanwhile, the Company is currently engaged in preliminary development works on the Wujianfang Coal Mine, the Kongduigou Coal Mine and the Changtan Coal Mine. The Duolun Coal Chemical Project marked a significant breakthrough on its core technologies. In 2010, the power plants at the Keqi Coal-based Natural Gas Project were completed and delivered for operation before the end of 2010. The Fuxin Coal-based Natural Gas Project was approved to start construction during the Year. The High-Aluminium Pulverised Fuel Ash Project of Inner Mongolia Renewable Energy Resource Development Company Limited proceeded smoothly.

Looking forward to 2011, Mr. Liu said, "In 2011, the long-term development of the domestic economy is expected to remain favourable. Utilisation hours of generating units are likely to remain basically stable or undergo a slight increase. Owing to its outstanding advantages of having expanding capacity in generating units located along the southeastern coastal region and having large-capacity generating units, the Company is in a favourable position amidst the fierce competition in the electricity market. In addition, given the successive commencements of operation and developments in the Company's non-power businesses, achievements of the Company's diversified developments will gradually be seen. However, in 2011, the Company has to meet various challenges arising from the financial crisis, the contraction policy of the State, rising thermal coal prices and the cost pressure brought by energy conservation and emissions reduction. Faced with the complex and changing environment, the Company will continue to adhere to the strategy of "focusing in the power generation business whilst complementing with synergistic diversifications". It will continuously adjust and optimise the development structure, actively push forward capital operation, continuously intensify energy conservation and emissions reduction, and endeavour to enhance profitability."

Datang International Power Generation Co., Ltd.

Datang International Power Generation Co., Ltd. is one of the largest independent power producers in China. As at 31 December 2010, the Company's total installed capacity in operation amounted to 36,300.3MW. The Company has been listed on The Stock Exchange of Hong Kong Limited and the London Stock Exchange respectively since March 1997. Since September 2001, the Company's American Depositary Receipts (ADRs) have been traded in the U.S. over-the-counter market.  The Company has been successfully listed on the Shanghai Stock Exchange since December 2006.

Datang International Power Generation Co., Ltd.

2010 Annual Results

(prepared in conformity with International Financial Reporting Standards)


Consolidated Income Statement (audited)









2010


2009


RMB'000


RMB'000




(restated)

Operating revenue

60,672,375


47,942,923

Total operating costs

(51,468,680)


(41,298,124)

Operating profit

9,203,695


6,644,799

Shares of profits of associates

718,231


462,112

Shares of profits/(losses) of jointly controlled entities

1,104


(52,685)

Investment income  

10,015


6,245

Other gains

102,377


148,441

Interest income

38,215


33,124

Finance costs  

(5,373,337)


(4,110,557)

Profit before tax

4,700,300


3,131,479

Income tax expense

(871,355)


(614,926)

Profit for the year

3,828,945


2,516,553

Other comprehensive income for the year, net of tax

(60,585)


(17,884)

Total comprehensive income for the year

3,768,360


2,498,669





Profit for the year attributable to:




  Owners of the Company

2,569,734


1,536,554

  Non-controlling interests

1,259,211


979,999






3,828,945


2,516,553





Total comprehensive income for the year attributable to:




  Owners of the Company

2,513,417


1,516,479

  Non-controlling interests

1,254,943


982,190


3,768,360


2,498,669

Dividends proposed

861,703


861,703

Dividends paid

861,703


1,295,804





Earnings per share




  Basic (RMB)

0.21


0.13




For enquiries, please contact:

Datang International Power Generation Co., Ltd.

Rikes Hill & Knowlton Limited

Mr. Grant Zhang / Ms. Karen Chen

Ms. Jennifer Leung / Ms. Christy Lai

Tel: +86-10-8800-8678 / +86-10-8800-8682

Tel: +852-2520-2201

Fax: +86-10-8800-8684

Fax: +852-2520-2241



SOURCE Datang International Power Generation Co., Ltd.