MOSCOW (MRC) -- Datang International Power Generation, the listed subsidiary of the nation's second largest power producer, China Datang Group, said yesterday it expects its profits to be helped by lower coal prices again this year, said Scmp.
However, analysts said its earnings outlook was uncertain, given a lack of output growth and weak profits from its non-power businesses.
Datang's vice-chairman, Cao Jingshan, said the company could see its average coal cost per unit of output drop by 3 to 5 per cent this year compared to last year. Some rivals have projected a 5 per cent fall.
Last year Datang saw its cost of coal per unit of output fall 3.6 per cent. The cost of coal took up 69.4 per cent of total operating costs in 2012. Those lower fuel costs helped the company more than double net profit to 4.06 billion yuan for last year, it revealed on Monday. Excluding non-recurring gains, pre-tax profit grew 72 per cent from 2011.
As MRC informed earlier, in September 2019, Datang International Duolun Coal Chemical, subsidiary of Datang International, restarted one PP unit 230,000 tonnes/year, whixh was shut in April 2018. Its another PP line resumed production on 1 October.
According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.
Datang International Power Generation Co., Ltd. is a power generation company. The principal activities of the Company are power generation and power plant development in the People's Republic of China (PRC). It is also engaged in activities, including the sale of electricity and thermal power, repair and testing of power equipment, power related technical services, coal trading, chemical products manufacturing and selling, coal chemistry, transportation and recycling.
MRC