According to www.people.com.cn, Datang International Power Generation Co., Ltd yesterday released its Third Quarterly, posting a net profit loss of 432 million yuan, or down 100.52% in net profit than the same period last year; it’s also estimated that its annual performance this year will drop 85%, with a profit growth of 3411 million yuan from the same period last year. The decline in performance is due to the surging fuel prices.
So far, among 9 power companies on which forecasts on annual performance in 2008 have been done, four companies will drop in performance, four companies will experience profit loss for the first time, one company will continue to be in red, and one company will increase in performance. Relevant data shows, as of Oct.23rd, 18 among 56 power businesses have posted Third Quarterly. Of the total, eight businesses have suffered losses in the third quarter, including 7 thermal coal businesses.
At present, the domestic coal prices have begun to decline. The liquidation price of coal in Qinghuangdao and the pithead price of coal in Shanxi have both dropped. For this, expert of COALWORLD Li Chaolin believes it is only a slight fall, and is expected to rise further. Some analysts also believe that the current coal price drop is merely 20%, and there is still room for decline compared with the 50% drop in coal prices in the international market.
With the decline in coal prices, the number of loss-making enterprises may be lessened within the year, but it’s very difficult for them to return to profitability, said CITIC Securities analysts.