Sales up, profits down at Longyuan
China’s biggest wind-power operator, Longyuan, saw its profits fall last year, despite growing the income from its huge wind fleet.
Longyuan increased revenue in 2013 by 10% year-on-year to 18.46bn yuan.
The group added 1.3GW of new wind capacity last year, bringing the total to 11.9GW.
Production from wind grew by more than 30% to 21.93TWh as Longyuan saw the benefits of easing grid curtailment and average utilisation hours of 2,111 – up by 126 hours on 2012’s level.
But the company’s costs went up as well – partly because it spent more on staff and maintenance to ensure its plants achieved better performance levels.
Along with impairments on biomass facilities and wind projects that won’t be advanced, that contributed to Longyuan’s net profit falling 21% year-on-year to $2.05bn yuan.
However, the group said the production levels now being achieved in China – where it has the biggest share of projects approved for development by the National Energy Administration – and its growing international profile bode well for its prospects this year and beyond.