Guangdong Electric Power Development Co., Ltd., one of the major power producers in China, earned a net profit of 975 million yuan ($134.8 million) in 2023, surging 132.7% from the previous year, the company said in its annual report.
Its annual revenue totaled 59.71 billion yuan, up 13.38% year on year, the report said.
The notable hikes were mainly attributed to increased on-grid power generation compared to 2022. Improved marginal returns for the company's coal-fired power generation business also contributed to the substantial rises in net profit.
Guangdong Electric Power focuses on coal-fired power generation business. Therefore, fuel costs constitute a large share of its total operating cost. In 2023, the company's fuel costs amounted to 40.27 billion yuan, accounting for 79% of total operating costs. The figure was 6.90% or 2.99 billion yuan lower than the year-ago level driven by reduced power coal prices.
Guangdong province, the company's primary market, announced a year-on-year increase of 8% in electricity demand last year, reaching 850.2 TWh. This led to 12.84% growth in the company's revenue in Guangdong, with power sales jumping 13.43%.
Guangdong Electric Power totally sold 114 TWh of electricity during the reporting period, increasing 5.87% year on year. The selling prices averaged 583.43 yuan/MWh, ticking up 6.94% or 37.88 yuan/MWh from a year ago.
In 2023, the company added 3.09 GW of installed capacity through self-construction and acquisitions, rising 2.43 GW on the year. 0.66 GW of coal-fired power units were shut down.
It also promoted the construction of renewable energy projects, with the renewable installations reaching 12.24 GW, representing 38.09% of its total installed capacity.
Reductions in medium- and long-term power trading prices in Guangdong may pose negative impact on the company's revenue in 2024. The average price for 2024 has already reflected a downward trend, according to recent deals announced by the Guangdong Power Exchange.
In 2024, Guangdong Electric Power aims to generate 122.32 TWh of electricity connected to the grid, up 8.31 TWh from 2023. Its revenue from coal-fired power generation business is expected to decline 2.38 billion yuan from 59.3 billion yuan in 2023 to 56.9 billion yuan.
(Writing by yan.sun Editing by Harry Huo)
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