Hong Kong-listed Enerchina Holdings Limited (Stock Code: 622) has reported an interim net profit of HK$5.1 million for its first half operations, representing a turnaround from a loss of HK$187.8 million for the same period last year. Its consolidated turnover for the period was up 166.2% to approximately HK$187.8 million. (US$1=HK$7.78).
“The encouraging performance was the results of the increase in power generation and the management’s effective cost control measures,” said chairman Sun Qiang Chang.
Despite the outbreak of Severe Acute Respiratory Syndrome in the first part of the year which slowed down the economy, the company said the power generation industry was not impacted significantly.
According to official statistics, Hongkong’s total domestic electricity consumption increased by nearly 15.4% during the first six months in 2003 to 861.7 billion kilowatt hour, and is expected to reach 1,850 billion kilowatt hour by the end of the year.
“The rapid growth in electricity demand, together with the implementation of industry reform by the Chinese government, provide a fair and competitive platform for the industry players which in turn give new and good opportunities to the company for achieving sustainable growth and development,” said Mr. Sun.
The group’s operating unit, Fuhuade power plant, was expanded to installed capacity of 305,000 kilowatts in May.
For the first half of the year, the group sold a total of 313.3 million kilowatt hour electricity, up 161.5% from 119.8 million kilowatt hour for the same period last year.
Mr Sun said the group is currently studying the feasibility of switching to using natural gas as fuel as well as expanding installed capacity to one million kilowatts.