On August 31st , Huadian Power International Co., Ltd. ( hereinafter referred to as “ Huadian Power International â€) and Inner Mongolia Jinwo Investment Co., Ltd. signed the “Agreement on Equity Transfer of Etuokeqianqi Quanhui Trading Co., Ltd.†to Huadian Group. The number of coal mines jointly developed by Xinwen Mining Group Co., Ltd. in the west area of ​​the Shanghai Miao Mining Area in Inner Mongolia increased to five and the purchase amount exceeded RMB 2.45 billion. Just a few days ago, Pingzhuang Coal Company, the largest coal company controlled by Guodian Group, entered into a strategic cooperation framework agreement with Jinzhou Port to open up the Pingzhuang Coal Industry's north coal and water transport channel. The first batch of coal will be shipped to Guodian Anhui Tongling Power Plant. According to media reports, the north coal and south transport are important measures for power companies to increase coal self-use rates and deal with market risks.
In 2008 , the Energy Development Bureau of the National Development and Reform Commission issued a research report on the merger and reorganization of coal mining enterprises in China. For the first time, it encouraged large-scale enterprises such as electric power to merge and restructure coal mines to realize integrated coal-fired power management. After two years, the power companies involved in coal-related coal production are passing several major power groups. The national acquisition of coal resources is ongoing. Many people believe that accelerating the coal-electricity integration process can speed up the reduction of fuel costs for thermal power companies and effectively alleviate the intensifying coal-power conflict.
Fuel costs constrain business development
On August 27 , Huadian International announced its 2010 interim report. According to relevant data, Huadian International's operating income increased by 26.5% year-on-year in the first half of the year, resulting in a net profit of only RMB 35 million, which was a drop of 94% year-on-year and was basically on the verge of a loss. At the same time, the cost of fuel for electricity generation was approximately 258.84 yuan / MWh, a year-on-year increase of 19% , and the total fuel cost reached 15.7 billion yuan, accounting for 78.86% of the total cost.
The China Investment Advisor wrote in this article pointed out that the substantial decline in Huadian Power's net profit was mainly due to the increase in operating costs in the first half of the year, especially the increase in fuel costs, which directly led to a decline in profitability.
The semi-annual report of Huaneng Power International Corporation ( hereinafter referred to as “ Huaneng International â€) showed that operating profit rose by 20.69% year-on-year in the first half of the year and net profit was 2.025 billion yuan, a slight increase of 2.71% year-on-year. The operating profit margin for the first half of the year was 11.15% . The year-on-year decrease of 2.58 percentage points. Researchers believe that in the first half of the year, Huaneng International’s operating costs were RMB 43.287 billion, up 41.36 % year-on-year, driven by rising fuel prices, scale expansion, and increased power generation. The data shows that 75% of Huaneng International's fuel is the key contract coal, and the contract price has risen by about 50 yuan from last year, with an increase rate of 8% .
Although the net profit of Datang International Power Co., Ltd. ( hereinafter referred to as “ Datang International â€) for the first half of the year increased by RMB 911.9 million year-on-year, the cost of electricity fuel increased by RMB 3.6 billion due to the increase in coal prices. Wang Yujun, president and chief operating officer of China Resources Power Holdings Co., Ltd., revealed recently that China Resources’ fuel cost for the first half of the year increased by 19.8% , of which thermal coal costs increased by 17% . In addition, Yudean Electric Power reported that due to the increase in fuel prices and the cost of purchasing fuel, the operating performance increased significantly.
Industry analysts have told reporters: “ From the published reports of listed companies in the power industry, the thermal power industry still displays ' increasing revenue and not giving profits ' , resulting in a drop in the gross profit margin of thermal power generation business. The key is that the operating cost increases more than operating profit. The rate of increase. "
Restructuring assets to accelerate coal self-sufficiency
On August 25 , Premier Wen Jiabao of the State Council presided over the executive meeting of the State Council to study and deploy coal mining enterprises to promote mergers and reorganizations. The meeting also encouraged companies in the power and other industries to participate in mergers and reorganizations. In the medium to long-term perspective, the downstream industry will extend upstream and will reduce the downstream industry. With regard to raw material dependence of coal companies, the profit structure of the entire industrial chain may be redistributed.
“The power generation companies do not have a certain degree of risk of coal resources, and it is difficult to change the market position of coal power. †Lu Qizhou, general manager of China Power Investment Group ( hereinafter referred to as “ CLP â€) , told the media early this year. On August 31 , CLP Group's coal and comprehensive industry economic activity analysis conference in the first half of 2010 and the coal industry benchmarking management initiation meeting clearly stated that we must ensure that the coal self-sufficiency rate at the end of the “ Twelfth Five-year Plan†reached 50% . On September 3 , CPI indicated that it will implement the plan for the continuation of mineral rights and the transformation of resources in the Baojibei coalfield as soon as possible on specific projects, complete the M&A and restructuring of the Sakurako coal mine in Xinjiang, and implement the prospecting rights in the Xinjiang Ili region.
Similarly, several other power groups have recently indicated that they will further coal-related and increase their coal self-sufficiency rate.
Cao Jingshan, deputy general manager of Datang International Power Generation Co., Ltd., revealed recently that Datang International is seeking to acquire a coal mine project in Inner Mongolia and plans to increase its coal self-sufficiency rate from 20% to 40% by 2015 . Recently, Datang Group released news that its Shanxi branch will jointly invest in the construction of a coal gangue power plant with China Coal Pingyi Coal Mining Company.
According to the statistics, at present, Huadian Power's industrial layout in the three major coal bases in Shanxi, Ningxia and Inner Mongolia has basically taken shape. It is expected that in the second half of 2011 , the coal resources production capacity of Huadian International's participating and holding companies will be released and the coal self-sufficiency rate will exceed 12% . By 2013 , Huadian International will occupy more than 2 billion tons of coal resources, with an annual production capacity of approximately 30 million tons, achieving a coal self-sufficiency ratio of more than 30% .
Huaneng Group currently has 19 production coal mines. In 2009 , it produced 44.08 million tons of coal. It is planned that by 2010 , the amount of self-supply coal will increase from 17 million tons in 2007 to 45 million tons, which will increase the self-sufficiency rate of coal from 12% to over 20% .
In recent years, Guodian Group has obtained a lot of coal resources through restructuring, acquisitions, etc. After the integration of Yimeng Coal and Electricity, Guodian Group will receive a large amount of thermal coal with high net profit per ton of coal. Industry analysts estimate that Guodian Group’s self-sufficiency rate will reach 30%-40% by 2015 .
“ Accelerate the involvement in the investment and development of the coal sector, actively expand the coal resources, establish an effective coal reserve mechanism, and increase the coal self-sufficiency rate to cope with the operational risks brought about by coal price fluctuations. It is to respond to the rise in coal prices and out of the dilemma of ' self-help '. " An important move. " An industry senior expert told reporters.
Coal and electricity to be accelerated
"Since self-sufficiency is low, power companies will not have bargaining power. " Zou Xuyuan, an analyst at Galaxy Securities Electric Power, told reporters. He also pointed out that at present, power companies generally adopt coal mining methods to increase coal self-sufficiency, but the investment cycle is usually 2-3 years. How much self-sufficiency can be achieved depends on the distribution of coal mines and power plants purchased. According to him, the extent to which the coal mines to which the power companies belong can provide fuel for their power plants, and to what extent the pressure on fuel costs will be reduced, remains to be further observed.
“ Under the current system, the increase in the coal self-sufficiency rate of power companies is beneficial to both enterprises and the country. The acceleration of coal-related power companies can effectively alleviate the ' coal-waste ' phenomenon and strengthen the state’s control over the coal industry. †Chinese Academy of Sciences Strategic Issues Zhou Chengxiong, deputy director of the Consultation Research Center, told the China Energy News reporter.
According to the reporter's understanding, at present, in addition to the shortage of coal-fired power supplies, some power plants are also facing outstanding quality problems. " Coal is doped with many stones. Coal yards in power plants are commonplace. Many coal gangues are not sold directly to power plants. " A Henan power plant worker told reporters. He also revealed that the poor quality of coal used for power generation in power plants is relatively common and often causes damage to power plant equipment.
" Now that coal is the seller's market, power plants can even ignore quality in order to compete for coal. While coal companies are not afraid of coal sales, they do not have the incentive to ensure quality. Coal and electricity can effectively solve this problem. " Zhou Chengxiong explained to reporters.
An industry expert who did not wish to be named suggested to reporters that he could learn from foreign experience and allow coal companies and power companies to sign long-term contracts and make provisions on prices to ensure that the parties will not change their prices at will because of changes in market supply and demand, resulting in the loss of one party. . In this regard, Zhou Chengxiong believes that the signing of the agreement can not solve the fundamental problem, generally 5 to 10 years of long-term agreement, the current domestic situation is far from reaching. The most important thing is that the price of the agreement reached by the two parties is not clear. Therefore, if the coal price changes, the power company will seek another seller. "The agreement is a piece of paper and it won't have much negotiation and restraint, " he said.
“The system is very difficult to change at the moment, and it involves resources tax and coal mine ownership issues, and coal and electricity are also difficult to link. However, after the power companies involved in coal, the huge profits of coal companies will gradually break down. The future of coal and electricity integration is like the country. As for the regulation of the oil industry, adjusting the price of electricity is like adjusting the price of refined oil, and the upstream industry will naturally be linked. †Zhou Chengxiong stressed last.