Others News
- High coal costs hurt China Power net
Date: 30-Jul-2007 Sources: (Shenzhen Daily)
HIGH coal costs 'significantly?hurt China Power International Development Ltd.'s first-half net profit, executive director Hu Jiangdong said Friday, without elaborating.
The company also said its full-year 2007 net profit could be severely affected if the government doesn't raise electricity prices during the second half to compensate for the rise in coal costs. Electricity prices, which are set by the government, were meant to rise under a mechanism that links them to domestic thermal coal prices, which have increased more than 10 percent so far this year. But the government decided not to raise domestic electricity prices this year because of concerns about inflation and in light of power companies' robust profit margins in 2006.
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