China’s Yangtze Electric Power Co., operator of 18,200-MW Three Gorges Dam, said February 14 it would pay 3.1 billion renminbi (US$400 million) to buy a major stake in another hydropower generator.
Yangtze Power agreed to take 45 percent of Hubei Energy Group, which now is owned 100 percent by the government of the central province of Hubei, Yangtze said. The purchase, which requires approval by shareholders and the government, will boost Yangtze Power’s effective generating capacity by 2,010 MW and will give Yangtze access to Hubei Energy’s water resources.
In 2005, Qingjiang Hydropower Investment Development Corp. and Hubei Power Development Corp. merged into Hubei Energy Group. Hubei has hydropower plants on Qingjiang River in western Hubei.
Yangtze Power now has installed capacity of 6,980 MW, operating a total of 12,580 MW, according to its Internet site. Upon initial completion in 2009, Three Gorges will total 18,200 MW from 26 generators. However, it already is being expanded to 22,400 MW. (HNN 1/5/07)
The acquisition follows several similar deals by Yangtze Power in China over the past several years. Yangtze Power said it aimed eventually to help Hubei Energy list on a stock market.
Yangtze Power net profit increases 8.5 percent
Yangtze Power said its net profit rose 8.48 percent to 3.62 billion renminbi (US$467 million) in 2006.
Earnings per share rose to 0.442 renminbi (5.7 US cents) from 0.408 renminbi (5.2 US cents), while revenues fell 4.71 percent to 6.92 billion renminbi (US$892 million). Assets per share rose to 2.97 renminbi (38 US cents) from 2.71 renminbi (34.9 US cents).
The company released an unaudited overview of its earnings before its full 2006 earnings report, which is expected to be published in early April.
In January, Yangtze Power said its electricity output fell 7.72 percent in 2006, mainly because of low water levels caused by a drought. It also cited a cut in its allotment of generating equipment, which it shares with its state-owned parent.