Multiple semi-annual reports show that due to the high cost of coal-fired power, the profits of the five listed companies all fell year-on-year. Judging from the operating indicators, in the first half of this year, most companies were able to achieve year-on-year increase in operating income, but their net profits decreased year-on-year. At the same time, the installed capacity of clean energy power generation of major listed companies under the five major power generation groups has maintained a growth momentum, accelerating the transformation to low-carbon power, accounting for more than 20%. Among them, the proportion of installed capacity of China Electric Power clean energy in under has reached 50.72%.
(Text | Reporter Yang Xiaoran of this newspaper)
Recently, the five major listed companies of the five power generation groups, Huadian International , China Electric Power, Datang Power Generation , Guodian Electric Power , and Huaneng International have successively released their 2022 semi-annual reports. Many semi-annual reports of
show that due to the high cost of coal-fired power in the first half of the year, the profits of the five listed companies all fell year-on-year. At the same time, under the construction of a new power system and the "dual carbon" goal, the five major power generation groups have accelerated low-carbon transformation and actively deployed in the new energy industry.
High coal-fired power costs affect net profit
Huadian International's semi-annual report shows that the group's turnover during the reporting period was approximately RMB 48.945 billion, a decrease of approximately 7.21% over the same period in 2021; the profit attributable to equity holders of the company was approximately RMB 1.58 billion, a decrease of approximately 51.81% year-on-year. China Electric Power's operating income during the reporting period was 20.305 billion yuan, an increase of 19.68% year-on-year; the profit attributable to equity holders of the Company was approximately 850 million yuan, a decrease of 44.87% year-on-year. Datang Power Generation's operating income was approximately 55.6 billion yuan, a year-on-year increase of 9.99%; the net profit attributable to shareholders of listed companies was approximately 1.4 billion yuan, a year-on-year decrease of 20.82%. During the reporting period, Guodian Power's operating income was approximately RMB 91.1589 billion, a year-on-year increase of 20.03%; net profit attributable to shareholders of listed companies was RMB 2.295 billion, a year-on-year decrease of 22.10%. Huaneng International's semi-annual report shows that in the six months ended June 30, 2022, the company achieved operating income of RMB 116.869 billion, an increase of 22.68% over the same period last year; net profit attributable to equity holders of the company was -3.22 billion, a decrease of 176.91% over the same period last year.
From the perspective of operating indicators, in the first half of this year, most companies were able to achieve year-on-year increase in operating income, but all five semi-annual reports showed that their net profit decreased by year-on-year. Affected by the imbalance in the supply and demand relationship of coal in the first half of 2022, coal prices are still at a high level overall, which has an impact on the performance of the coal-fired power industry.
As Huaneng International’s semi-annual report pointed out that in the first half of the year, due to factors such as the continued tight supply of coal resources at home and abroad, coal prices remained at high levels. "Although we have tried to control procurement prices through actively seeking national policy support, ensuring the implementation of medium- and long-term contracts for electric coal, and re-signing of imported coal emergency guarantee contracts, etc., and ensuring safe and stable supply. However, affected by the overall market situation, fuel procurement prices have risen significantly year-on-year, especially the coal procurement prices of power plants in Xiashui coal, which account for a large proportion of the company's installed capacity, and the company's unit sales fuel costs in domestic power plants increased by 50.49% year-on-year in the first half of the year." Huadian International also pointed out that fuel costs are the most important operating expenses. Fuel costs in the first half of the year were approximately RMB 37.794 billion, an increase of about 33.34% over the same period in 2021, mainly due to the impact of the sharp rise in coal and gas prices.
related research reports and analysis, from the revenue side, as the market-oriented reform of electricity continues to advance, electricity prices in various places may rise. The cost side will also drive further decline in fuel costs under the increase in coal compliance rate and policy control of the Changcheng Coal Co., Ltd. Overall, as costs gradually decline, the profitability of thermal power business is expected to be restored. The semi-annual reports of major listed companies of the five major power generation groups also stated that they will insist on improving the long-term contract fulfillment rate, stabilize the basic supply of long-term contracts, and optimize the long-term contract structure. At the same time, further strengthen internal management and improve the ability to stabilize the market and stabilize coal prices.
Accelerate the low-carbon transformation
Since this year, the issuance of documents such as the "Guiding Opinions on Accelerating the Construction of a National Unified Power Market System" and "Renewable Energy "14th Five-Year Plan" have all promoted the low-carbon transformation of my country's energy production and consumption methods.In the first half of the year, the installed capacity of clean energy power generation of major listed companies under the five major power generation groups maintained a growth momentum, accounting for more than 20%, of which the installed capacity of China's clean energy power under State Power Investment Corporation accounted for the highest proportion of 50.72%. All five major power generation groups are showing an accelerated trend of low-carbon transformation in power.
The proportion of installed capacity of low-carbon clean energy continues to increase . As of June 2022, the combined installed capacity of China's power clean energy, including hydropower, wind power, photovoltaic power generation and gas-power accounted for about 50.72% of the group's combined installed capacity, an increase of 3.62% over the same period last year; Datang Power Generation vigorously promoted the transformation of low-carbon clean energy, and the proportion of low-carbon clean energy further increased to 30.5%; Huadian International Gas Power Holdings installed capacity was about 8.58905 million kilowatts, Hydropower Holdings installed capacity was about 2.459 million kilowatts, and clean energy generators such as gas power generation and hydropower generation accounted for about 20.69%.
Huaneng International's installed capacity of controlled power generation was 122,199 megawatts, and the proportion of low-carbon clean energy installed capacity including wind power, solar power, hydropower, gas engines, and biomass electricity reached 24.33%.
Guodian Power As of June 2022, the company's consolidated financial statements had an installed capacity of 100.3864 million kilowatts, including: thermal power 76.46 million kilowatts, hydropower 14.9566 million kilowatts, wind power 7.4593 million kilowatts, photovoltaic 1.5105 million kilowatts, and non-fossil energy holding installed capacity totaling 23.9264 million kilowatts, accounting for 23.83%; the newly added installed capacity of
is also mostly new energy units. During the reporting period, Datang Power Generation added 224.2 MW of installed capacity, both of which are new energy units; Huadian International added 6049 MW of installed capacity, both of which are low-carbon clean energy such as hydraulic power and photovoltaics; Guodian Power added 1.5333 million kilowatts of new energy installed capacity, including 388,700 kilowatts of wind power and 1.1446 million kilowatts of photovoltaic; 8.3779 million kilowatts of new energy resources were obtained, and 9.1167 million kilowatts of approved or registered new energy capacity was 9.1167 million kilowatts of wind power, including 392,000 kilowatts of photovoltaic power and 8.7247 million kilowatts of photovoltaic power.
Huaneng International has added 3504.72 MW of controlled power generation, of which the newly added low-carbon clean energy installed capacity is about 3154 MW: wind power controlled power installed capacity 1945.9 MW, solar controlled power installed capacity 1136.42 MW, biomass controlled power generation installed capacity 40 MW, hydropower controlled power installed capacity 1.4 MW, and acquired 30 MW of Hebei Nangong Agricultural Optical Complementary Project.
integrates into the new power market
In recent years, a large number of new energy units in China will squeeze out the thermal power market share. and most of the five major generator groups have a low proportion of new energy installed capacity, and faces a major challenge in the power market share. In addition, the market-oriented reform of electricity has gradually entered the deep waters, the pace of building a unified national power market has accelerated, the trading rules of the electricity spot market have been continuously updated, and the rules of green electricity green certificate trading, auxiliary services, etc. have also been continuously improved. The competition for generator sets is extremely fierce, and they all face the challenge of uncertain returns on investment.
Datang International , which is mainly based on the thermal power industry, said that it will coordinate the "two quantities and two prices" of electric heating. At the same time, maintain close communication with all parties in the market, participate in the entire chain in the process of market construction, policy formulation, and rule implementation, and give full play to its influence.
Huadian International’s semi-annual report points out that the group’s thermal power installed capacity currently accounts for a high proportion, and the problem of unbalanced and inconsistent power structure and asset layout still exists. In order to achieve the goal of carbon peak and carbon neutrality and build a new power system, we will give full play to the important role of basic guarantee and system regulation undertaken by of coal-fired generator sets, and actively integrate and serve the construction of the new power market.
China Electric Power Semi-annual Report pointed out that according to the overall deployment of promoting the scale, industrialization and marketization of new energy storage and the continuous promotion of the integrated development of new energy storage and the power system, the company will accelerate the research on new energy storage trading strategies for the construction of new energy and further expand the company's leading position in the energy storage business. In addition, we will continue to strengthen research on electricity market policies, especially spot trading, green certificates and green electricity, carbon emission quotas and related market policies and plans.
Huaneng International stated that in the second half of the year, the company will actively promote green transformation, accelerate the increase in the proportion of clean energy, realize the optimization and upgrading of installed capacity structure, and at the same time do a good job in low-cost fulfillment of carbon market transactions.
Nowadays, the national carbon market transaction has officially started. Under the "dual carbon" strategy, carbon quotas are expected to gradually tighten, and the transformation of clean coal-electricity units is imminent, and strengthening carbon asset management has become one of the main contents of coal-electricity enterprises' operations. Guodian Power will accelerate the green coupling development of coal-fired power, accelerate the expansion and development of coal-fired power, promote the "three reforms and linkage" of existing coal-fired power, vigorously promote the transformation of comprehensive energy, strive to allocate new energy projects such as photovoltaics and wind power, and make an optimized combination with base projects.
Original title: Coal and electricity drags down profits, new energy layout accelerates
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Engineer丨Li Huiying
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