China Longyuan Power Group Co. Ltd. (CLPG, 00916.HK) expects the utilisation hours of its wind capacity to increase by 2 percent this year.
Average win power utilisation fell to 1,980 hours in 2014, down 131 hours in 2013, primarily due to reduced wind resources.
The company increased sales of wind power in the first two months of the year despite a slowing Chinese economy, president Li Enyi told at a media conference Wednesday.
Li expects a strong performance from Longyuan’s wind power business this year.
About 2,000 megawatts of installed wind capacity will come on stream this year, backed by capital spending of about 16 billion yuan (US$2.57 billion), Li said.
In 2014, the company generated 33,388 gigawatt-hours (GWh) of cumulative gross output, up 5.28 percent from the previous year, with wind power accounting for 23,088 GWh, it said in a regulatory filing.
Li attributed the growth to improved management and increased production efficiency which made up for lower wind speeds.
Meanwhile, Li said its 99-megawatt wind power project in Canada, which started operation last year, is on course to make a profit thanks to strong contracted prices, tax incentives and high wind power utilization hours.
Construction will begin this fall on a 244.5-megawatt wind power project in South Africa. It is expected to start production in 2017.
CLPG said net profit rose 24.7 percent year on year to 2.56 billion yuan for the year to Dec. 31. Revenue was down 4.9 percent 18.21 billion yuan.
Basic earnings per share were 31.8 fen, up 6.3 fen from last year. The board proposed a final dividend of 5.97 fen per share compared with 4.75 fen in 2013.
– Contact us at [email protected]