China Longyuan profits fall in H1
Poorer wind conditions hit sales and profits at China Longyuan Power in the first half of the year, as the company prepares to ramp up its offshore operations.
Longyuan – China’s biggest wind farm operator – saw net profits fall 6.8% to 1.36bn yuan ($221m) in the January to June period, as revenue dipped 6.9% to 6.99bn.
The company said although it added wind capacity, which now stands at 11.9GW, profitability failed to keep pace because of an increase in under-utilisation.
“[This] was mainly attributable to the fact that the wind resources in the first half of 2014 was not as good as that in the corresponding period of 2013,” Longyuan said.
The Chinese group said it is ramping up its offshore ambitions, with the first half seeing “preliminary work of numerous offshore wind power projects in succession”.
These included progress to develop the Rudong demonstration project, which has a planned capacity of 200MW, and commissioned some turbines at the Fujian Nanri site, which is planned at 400MW.
Longyuan said it is tapping domestic and foreign experts for technical support, and said the introduction of feed-in tariff support for offshore generators will help boost the sector.