Rising coal prices erode profits, many power companies’ 2021 performance pre-loss |

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Original title: Rising coal prices erode profits, many power companies’ 2021 performance pre-losses Source: Securities Times

　　Affected by rising coal prices and increasing costs,Shanghai Electric Power（600021）、Zheneng Power(600023) and other power stocks are expected in 2021PerformanceLoss.

　　Rising fuel costs

　　Shanghai Electric PowerAccording to the forecast on the evening of January 7, the company’s estimated net loss in 2021 is between 1.785 billion yuan and 1.985 billion yuan.Net profitThe loss was 1.837 billion yuan to 2.037 billion yuan.

For performance pre-loss,Shanghai Electric PowerSaid that in 2021, coal prices continued to rise sharply, and coal prices rose sharply to reach historical highs, resulting in general losses in the company’s coal-fired power plants. The company’s cumulative annual unit price of standard coal was approximately RMB 1,097/ton (excluding tax), an increase of 67% year-on-year compared with the previous year, which increased the company’s annual fuel cost by approximately RMB 5.3 billion.

Same day,Zheneng PowerIt is expected to become a listed company in 2021shareholderThe net profit loss of 760 million yuan to 1.14 billion yuan; net profit loss of 1.16 billion yuan to 1.54 billion yuan after deduction. In comparison, the company will still make a profit of 6.086 billion yuan in 2020.Zheneng PowerSaid that in 2021, under the severe situation of rapid growth in social energy demand, continuous tight balance of bulk commodities, and steadily rising prices, the company will assume the social responsibility of state-owned enterprises, political responsibility and social responsibility of power supply, and achieve full delivery and fulfillment. Stable development has greatly eased the tight power supply situation. However, due to the sharp increase in coal prices, the company’s fuel costs increased significantly, and the net profit attributable to the parent fell sharply year-on-year, resulting in a loss in 2021.

In terms of policy, many market-oriented adjustment measures have been made.AnxinSecuritiesIt was pointed out that due to the sharp increase in coal prices in the third quarter of last year, coal-fired power plants generally suffered losses; in the fourth quarter, coal price and electricity price policies were successively introduced, including the National Development and Reform Commission’s promotion of coal power to enter 100% marketization, and the expansion of market-oriented power price fluctuations to fluctuate. The range does not exceed 20%, and the energy-intensive industries are not restricted.Regarding coal prices, the National Coal Trade Fair announced thecontractSigned the draft of the performance plan, raised the benchmark coal price of Changxie Coal to 700 yuan/ton, up from the previous 535 yuan/ton, and established a thermal coal price adjustment range from 550 yuan to 850 yuan/ton.

　　Provision for asset reduction

In addition to the increase in costs, Shanghai Power’s performance loss is also due to the provision of asset impairment, which totals about 660 million yuan, which will reduce the net profit attributable to the parent company by about 621 million yuan.Among them, the largest amount of accrued reduction is undoubtedly the subsidiary Hami XuanliGasPower Generation Co., Ltd.

After the company was put into production, due to the poor operating economy of gas turbines, it failed to form effective production capacity, and suffered losses for two consecutive years. There was a large gap between operating indicators and the feasibility study. In 2020, an asset impairment provision of 425 million yuan was made; 2021 After further evaluation in the year, it was concluded that “stopping two sets of 9E combined cycle generating units” concluded that Hami Company intends to withdraw no more than 301 million yuan for impairment of asset groups.

It is worth noting that during the same period, Shanghai Electric’s non-public issuance of stocks also experienced changes. In May last year, Shanghai Electric planned to introduce Changdian Power as a strategic investor through a fixed increase, and a total of 2.2 billion yuan was raised for investment in clean energy business.But on December 27 last year, Shanghai Electric receivedYangtze PowerIt was informed that it is planned to no longer subscribe for the company’s fixed increase, and the amount of funds raised will be reduced from 1 billion yuan to about 1.2 billion yuan. The controlling shareholder, the State Power Investment Group, intends to take over the subscription, and the non-public offering price is 6.17 yuan per share. After deducting the issuance costs, the net amount of the fundraising projects will be used for offshore wind farm projects in Yancheng Binhainan, Jiangsu Rudong and other offshore wind farm projects and to supplement working capital.forYangtze PowerThe reason for withdrawing from fixed growth is that Shanghai Power said it was due to changes in the capital market.

In the secondary market, Shanghai Electric Power’s stock price started to rise rapidly in late November last year. As of December 24 last year, the company’s stock price had risen by approximately 86%, and then the price had corrected and dropped by approximately 20%.

(Source: Securities Times)

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