Shanghai Electric Power Will Make Great Efforts to Meet Power Demands from External Areas

    During the online performance presentation of 2013, Liu Guangchi, President of Shanghai Electric Power, said that in recent years Shanghai has relied on increasing electricity from external areas, which, to some extent, affect the local company’s utilization of the generator units. In 2013, the electricity coming from external areas increased by 5.781 billion KWh, an increasing rate of 15.05%. SEP paid great attention to this situation, took effective measures to ensure the steady growth of the company's profits.

    Firstly, SEP focused on making more effective powers. In 2013, the company produced 31.119 billion KWh of electricity. Although the external electricity increased greatly, the company’s power generation increased year-on-year by 1.70%. Secondly, the company speed up the pace of development and make efforts to promote clean and efficient energy generation projects and actively explore overseas business and markets. Thirdly, the company will take value and performance-oriented measures, reduce the fuel costs and further upgrade the power generation efficiency.

    Liu Guangchi pointed out that coal cost accounts for about 70% of the total operation costs. The adjustment of inventory control is based on the power generation and coal price trends. The present inventory has declined comparing with previous month.

    Shanghai Electric Power: This Year’s Goal is to Make 800 Million Yuan of Net Profit

    On March 31, SEP held the 2013 online performance presentation. Sun Ji, the Deputy President and Chief Financial Officer of Shanghai Electric Power, said that the company set this year’s goal to produce 36.385 billion KWh of electricity; about 800 million Yuan of net profit is attributable to the shareholders and try to overfulfill the setting target. SEP will try to realize the coal consumption of power supply of 289.5g/kWh.

    Regarding the coal price in 2014, Sun Ji said that, considering this year’s economic situation, it is expected that the coal price will remain in low price. The company will continue to strengthen fuel management and cost control. On one hand, SEP will further take good use of two resources both domestic and overseas. Based on the domestic coal market, the company will develop overseas project and speed up overseas investment to access more resources. In addition, relaying on technological innovation, the company will spend more affects on lignite upgrading while occupying the lignite market home and abroad. On the other hand, the company will summarized its experiences in coal blending management to realize the scientific and refined blending and further reduce the fuel cost.

    Statistics show that in 2013, SEP’s net profit that attributes to its shareholders has reached 1.181 billion Yuan with a year-on-year increase of 33.35%. Basic earnings per share is 0.55 Yuan with a year-on-year increase of 33.35%. Net assets per share that attributes to its shareholders is 3.7 Yuan with a year-on-year increase of 12.83%.

    There are two reasons that can explain SEP’s outstanding performance. Firstly, in 2013, the yearly accumulated power generation capacity is 31.119 billion kWh, with a year-on-year increase of 1.70 %. In addition, the revenue generated by services, such as maintenance and operation, increased significantly year on year.

    Secondly, the company strictly controls the costs. SEP further optimizes coal procurement strategy and adheres to the scientific blending when the market price of coal is declining. Therefore, the coal prices dropped sharply. In addition, optimizing the loan structure and implementation of low-cost direct loans, the company reduced its financial expenses by about 5%.

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