In 2021, the supply and demand of coal was tight, the price was high, the contradiction between coal and electricity was intensified, the listed thermal power companies suffered large losses, and the net profit fell sharply year-on-year.
Experts in the coal industry told the associated press that the national development and Reform Commission raised the benchmark price of the long-term association in order to stabilize the upstream and downstream interests of coal power. The port coal price is about 840 yuan / ton, which is the profit and loss balance line of power generation enterprises. According to the current coal price, most power generation enterprises are still losing money. After the Winter Olympics, it is expected that the thermal coal will enter the downward stage.
coal prices soared, raising costs, and listed power enterprises suffered huge losses
As of January 28, 2021, the five core listed companies Datang International Power Generation Co.Ltd(601991) (601991. SH / 00991. HK), Huaneng Power International Inc(600011) (600011. SH), Huadian Power International Corporation Limited(600027) (600027. SH), Gd Power Development Co.Ltd(600795) (600795. SH) of the five major power generation groups had all released their performance forecasts for 2021. According to the combing and statistics of the financial Associated Press, the total loss was 25.4 billion-40.7 billion yuan, down 258.7% – 354.3% compared with the same period of the previous year.
In addition, Henan Yuneng Holdings Co.Ltd(001896) (001896. SZ), Shanghai Electric Power Co.Ltd(600021) (600021. SH), Zhejiang Zheneng Electric Power Co.Ltd(600023) (600023. SH), Guangdong Electric Power Development Co.Ltd(000539) (000539. SZ) and other 16 listed power enterprises also issued performance forecasts for 2021, with all net profits declining.
A number of listed companies explained in the announcement that the performance loss was caused by the continuous rise of coal prices and rising costs. Henan Yuneng Holdings Co.Ltd(001896) said that due to the continuous sharp rise in coal prices, the cost of power generation fuel of the company increased by about 3.2 billion yuan year-on-year (after restructuring), the income and cost were upside down, resulting in large-scale losses of thermal power enterprises, and the company’s gross profit and net profit attributable to the parent decreased significantly year-on-year; China Power said that coal prices rose sharply in the second half of last year, but the on grid electricity price did not rise simultaneously in the same period; Gd Power Development Co.Ltd(600795) said that according to preliminary statistics, the unit price of the company’s integrated standard coal into the furnace was about 890 yuan / ton, an increase of about 50% year-on-year; Shanghai Electric Power Co.Ltd(600021) said that the company’s cumulative unit price of coal converted into standard coal was about 1097 yuan / ton last year, with a year-on-year increase of 67%, increasing its annual fuel cost by about 5.3 billion yuan.
Experts in the coal industry told the associated press that in December 2021, the national development and Reform Commission issued the work plan for the signing and performance of medium and long-term coal contracts in 2022 (Exposure Draft), which is intended to stabilize the upstream and downstream interests of coal power. The national development and Reform Commission raised the benchmark price of the long-term association. The benchmark price of 5500 kcal thermal coal in the port was increased by 31% to 700 yuan from 535 yuan per ton, and linked with the price index released by four institutions such as the national coal trading center, fluctuated between 550-850 yuan / ton. The port coal price is about 840 yuan / ton, which is the profit and loss balance line of power generation enterprises. According to the current coal price, most power generation enterprises are still losing money.
Some insiders also said that last year, the economic recovery accelerated, and the power consumption showed a higher than expected growth trend. However, the hydropower industry as a whole was dry, and the situation of thermal power supply was grim. According to the calculation of China Electric Power Enterprise Federation, the purchase cost of electric coal by national coal and power enterprises increased by about 600 billion yuan last year. From August to November, the loss of coal power sector of some groups reached 100%, and the cumulative loss of the whole year reached about 80%.
after the Winter Olympics, it is expected that the thermal coal will enter the downward stage
Correspondingly, the performance of most coal listed companies increased, of which the annual net profit attributable to the parent company of Qinghai Jinrui Mineral Development Co.Ltd(600714) (600714, SH) increased by 19.67 times year-on-year, Shaanxi Heimao Coking Co.Ltd(601015) (601015, SH) increased by 6.72 to 7.24 times year-on-year, Jinneng Holding Shanxi Coal Industry Co.Ltd(601001) (601001, SH), Shanxi Coal International Energy Group Co.Ltd(600546) (600546, SH) increased by more than 4 times year-on-year.
According to the investigation of the financial Associated Press reporter, the first-line coal production of most state-owned coal enterprises is still normal during the Spring Festival, Shanghai Datun Energy Resources Co.Ltd(600508) (600508. SH), Shaanxi Coal Industry Company Limited(601225) (601225. SH), Gd Power Development Co.Ltd(600795) (600795. SH) company officials said that the coal mine production is normal during the Spring Festival, and the production capacity remains the same as usual.
According to the news of China Railway Group, the special action to ensure the supply of electricity and coal has been continuously promoted and achieved positive results. As of February 3, 363 railway direct supply power plants in China had stored 66.95 million tons of coal, an increase of 27.96 million tons or 72% year-on-year. The number of days of coal storage can reach more than 18 days, creating the best record in history.
Today, Hou Zhihua, deputy general manager of think tank, told the financial associated press that the short-term demand growth of the Spring Festival is mainly due to the large power consumption of low-temperature heating in the north recently. In addition, the countries of the Winter Olympic Games require the inventory of power plants to be increased to 30 days. After the Winter Olympic Games, it is expected that the power coal will enter the downward stage.
