Datang Power 2008 net down 79%

Datang International Power Generation Co (Datang Power), one of China's leading power producers, yesterday said its net profit for 2008 fell 79 percent from a year before due to high coal prices in the first three quarters and sharp decline in power demand in the fourth quarter.

In a statement to the Hong Kong bourse, the company said its net profit for 2008 amounted to 761 million yuan on sales of 36.8 billion yuan, up 12.4 percent from a year before.

"During 2008, the imbalance between the demand and supply of thermal coal was further aggravated and thermal coal prices continued to rise at high levels with a marked deterioration in quality, thereby severely undermining the profitability of power generation companies," said the company statement.