April 28 (Bloomberg) -- China Longyuan Power Group Corp., the nation’s biggest developer of wind farms, said first-quarter profit rose 15 percent as it generated more power at its wind business.
Net income increased to 718.6 million yuan ($115 million) from 624.5 million yuan a year ago, the company said today in a statement to the Hong Kong stock exchange. Sales from the company’s wind-power unit, excluding revenue from concession services, rose 17 percent to 2.79 billion yuan.
Profit at wind developers is rebounding after a slowdown in construction eased grid congestion, allowing projects to operate closer to capacity. China may install 14.7 gigawatts of wind power this year, compared with 14 gigawatts estimated for 2013, according to Bloomberg New Energy Finance.
“Capacity growth will be the major growth driver in 2014-15,” analysts Cho Fook Tat and Liang Shiming from Haitong International Securities Co. wrote in an April 22 note. “The company intends to progressively increase its annual capacity addition from 1.4 gigawatts in 2013 to 1.5-1.7 gigawatts in 2014 and accelerate it further from 2015 and onwards when the transmission network is strong enough to connect more wind farms.”
Wind-power generation rose 8.8 percent in the first quarter as installations climbed, according to the statement. Coal-power generation fell 11 percent in the same period while other renewable energy power generation surged 64 percent.
Shares rose 0.5 percent to close at HK$8.48 in Hong Kong.