China Power 2007 profit falls on higher costs
China Power International Development Ltd said on Tuesday net profit shrank 15.7% over the previous year in 2007, as higher coal costs eroded its earnings.
The company said in a statement to the Hong Kong Stock Exchange that net income for the 2007 fiscal year declined to RMB 592.4 million or RMB 0.16 a share, compared with RMB 702.8 million or RMB0.22 apiece a year earlier.
For the same period, turnover jumped 13.54% year-on-year to RMB 5.91 billion, but overall fuel costs climbed to RMB 3.84 billion, up 25% over 2006. The company, along with rivals, is fighting to hold down coal prices, which is expected to rise 15% to 20% this year.
China Power had a capacity of 7,883 MW at the end of 2007. It aims to nearly double its generating capacity to 15,000 MW by 2010 to meet surging demand in the world’s second-largest electricity market.
The board proposed a final dividend of RMB 0.054 per share, lower than RMB 0.081 a year before.
Tags: electricity, power