The competent authorities or further intervention in coal-fired power companies have lost their enthusiasm for power generation

Huadian Power International Co., Ltd. (hereinafter referred to as "Huaton Power International") had a loss of 294 million yuan in the first quarter, and the net profit attributable to the parent company was -265 million yuan, a year-on-year decrease of 442.63%. Huaneng Power International Co., Ltd. (600011.SH) had a net profit attributable to shareholders of listed companies for the first quarter of only 226 million yuan, a year-on-year decrease of 76%. At the same time, due to rising costs such as coal prices, the gross profit margin in the first quarter was only 8.9%, down 3% year-on-year. Guodian Electric Power Development Co., Ltd. (600795.SH, hereinafter referred to as "Guodian Power") realized operating income of 11.4 billion yuan in the first quarter, an increase of 27% year-on-year, and net profit attributable to the parent company was 450 million yuan, a year-on-year increase of 18%. In the first quarter, Guodian Power produced 34 billion kilowatt-hours of electricity, an increase of 25% year-on-year.

The relatively best performer was Datang International Power Generation Co., Ltd. (601991.SH). The company's net profit attributable to the parent company in the first quarter increased by 462.6% year-on-year to 87.20 million yuan. The company attributed the increase in profitability to the stable Q5 5500 kcal spot coal price in the first quarter and the profit contribution from heating subsidiaries.

Huadian International stated that the loss was mainly caused by the increase in the price of coal, and said that the uncertainty in the price of coal and the adjustment of the on-grid tariff prevented the company from making accurate judgments on the profitability of the next reporting period.

It is understood that the price index for the Bohai-Range thermal coal, which has the benchmark for thermal coal prices, had previously risen for five consecutive weeks. On April 26th, the coal price quoted by Qinhuangdao Port in Shanxi's 5,500 kcal was up to RMB 810 per ton, which was a 1.9% increase from the previous quarter and a year-on-year increase of 16.2%. This price rose by 125 yuan compared with the same period of last year, rose by 40 yuan from the end of March, rose by 15 yuan from last week, and has risen for 5 consecutive weeks; on the other hand, the electricity company's inventories have continued to decline, currently the Central China Power Grid The coal inventory is only enough for 9 days.

Therefore, although the major power generation groups continue to reduce the proportion of thermal power installations, the first quarter results are still subject to high coal prices.

An insider of the Guodian Group told the reporter that the top-ranking coal-fired power plant of the five power generation groups should be Huaneng Group, followed by Datang Group, Guodian Group, Huadian Group and China Power Investment Group. Among them, CPI's investment in thermal power generation accounted for the lowest ratio, which was about 70%. Huadian Group's thermal power installation accounted for about 75%, Guodian Group and Datang Corporation accounted for about 80%, and Huaneng Group should account for more than 80%.

While the performance of power generation companies is weak and lacks motivation, the peak-sum summer electricity usage threshold is already approaching. The China Electric Power Enterprise Federation recently stated that the power supply in some regions will continue to be tight this year, and there will be periods of intermittent power shortages in some regions. In particular, during the summer peak season, the power supply and demand gap may further expand. The estimated gap is about 30 million kilowatts, considering the climate, With the superposition of uncertainties such as incoming water and coal supply, the gap may further widen.

Some experts believe that in this context, the competent authorities may further interfere in the market coal price in order to solve the enthusiasm of the power generation enterprises.

Lin Boqiang, director of the Xiamen University Energy Economics Research Center, said that in order to weather the summer peak, the National Development and Reform Commission had previously interviewed major coal companies and requested to stabilize the market's coal price, but coal prices may continue to rise. At that time, the competent authorities may adopt a severe measure similar to the direct limit of coal prices in 2008.

Lin Boqiang said that the coal industry is already a state-owned enterprise and a state-owned company, and the industry structure is similar to that of the power industry. "If the on-grid tariffs go up, and the coal price rises again, the competent authorities will be forced to the corner; if it is possible to sacrifice the interests of the power companies for the protection of people's livelihood, why not sacrifice the interests of the coal companies?"

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