Concord New Energy expects H1 profit to fall over 66% on drop in power generation
This comes due to ‘the dual impacts of grid absorption constraints and climate fluctuations’
[SINGAPORE] Concord New Energy expects to report a first-half net profit drop of about 66 to 69 per cent due to a drop in power generation, it said on Monday (Aug 10).
Earnings are forecast to come in between 90 million yuan (US$13.3 million) and 100 million yuan for the six months ended Jun 30. This is compared with 292 million yuan for the corresponding period last year.
The fall in power generation was due to “the dual impacts of grid absorption constraints and climate fluctuations”.
“Coupled with the deepening of market-oriented power trading, the average comprehensive electricity tariff decreased, resulting in a reduction in revenue and profit from the power generation business,” said the dual-listed company.
Concord New Energy in January became Singapore’s first listing of the year through its secondary listing. The renewable energy company has a primary listing in Hong Kong.
The Singapore-headquartered group is primarily engaged in the investment and operation of wind power, solar energy, and energy storage projects and artificial intelligence-powered electricity infrastructure, as well as the provision of technical services and integrated solutions, it said in the Monday filing.
It inked three power purchase agreements (PPAs) with Tesla for solar projects in the US in late July. These PPAs are on a long-term basis, and for three solar projects with a total capacity of about 469 megawatts.
When in full operation, the three projects will supply Tesla with about 1,200 gigawatt-hours of electricity in the US each year.
Shares of Concord New Energy fell 6.8 per cent to close S$0.004 lower at S$0.055 on Friday.
