China top power firms may have lost 7 bln yuan -report
BEIJING, July 30 (Reuters) - Four of China's five major power generating groups may have lost a total of 7 billion yuan ($1.03 billion) in the first half, state media reported on Wednesday, as they were squeezed by soaring coal costs and state caps on power rates.
China Guodian Corp, parent of GD Power Development Co Ltd (600795.SS) and Guodian Changyuan Power Development Co Ltd 000966.SZ, have lost 1.4 billion yuan while the losses at China Power Investment Corp were "not small", the official Shanghai Securities News said, citing an industry official.
China Power Investment Corp controls China Power International (2380.HK), Chongqing Jiulong electric Power Co Ltd (600292.SS) and Shanghai Electric Power Co Ltd (600021.SS).
China Datang Corp, parent of Datang International Power Generation Co Ltd (0991.HK)(601991.SS), suffered a loss of 1.5 billion in the first five months and losses in the first half are expected to amount to near 2 billion, the report said.
China Huadian Corp, parent of Huadian Power (1071.HK)(600027.SS), lost 2.65 billion yuan in the first half.
Only China Huaneng Group, parent of Huaneng Power International (0902.HK)(600011.SS), earned a small profit, the Shanghai Securities News said, citing the industry official.
The five power majors hold about half of China's total installed generating capacity.
China raised retail power tariffs for industrial and commercial users by 0.025 yuan per kilowatt hour, or nearly 5 percent from July 1, the first time since 2006, and allowed about 80 percent of the hike to filter through to power firms.
However, some power companies and industry officials said the increase was not enough to compensate for the rises in coal costs during the past two years.
China is facing the prospect of the worst summer power shortages since 2004 as demand peaked while a lack of coal curbed power generation. In addition, power plants have not been enthusiastic about stepping up production while facing operating losses.
($1=6.825 Yuan)
(Reporting by Jim Bai; Editing by Ken Wills)
