Strong wind showing for Longyuan

CHINA: Longyuan Power saw its profits shrink in the first half of the year despite a strong showing from its wind business.

An increase in wind installations helped Longyuan in H1
An increase in wind installations helped Longyuan in H1

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A 9.6% increase in electricity sales from the wind power business to CNY 5.6 billion ($680 million) was not enough to counter a 14.4% fall in coal power sales to CNY 1.6 billion.

China's biggest wind developer recorded net profit of CNY 1.9 billion ($231 million), a decrease of 1.9% compared with the same period last year.

But the operating profit for the wind business came in at CNY 3.1 billion, representing an increase of 3.2%. This was mainly due to an increase in electricity sales led by the addition in installed capacity.

The increase in operating profit was less than the increase in the revenue because wind resources in the first half of 2014 were not as good as those in the corresponding period of 2013.

In the first half of 2014, the company obtained approvals for eight wind projects with total capacity of 527.8MW. As of 30 June, Longyuan had wind projects with a capacity of 5.3 GW approved but not yet commissioned.

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