(October 23, 2011) Recent reports show that China’s hydropower output fell over the past year, as drought struck the nation and major rivers declined in flow. The middle and lower reaches of the Yangtze were so badly affected that the Three Gorges Dam was ordered to release more water. This article reveals that the drought cut into power companies’ profits, too: Chongqing Three Gorges Water Conservancy & Electric Power’s profits fell a staggering 62%.
Net profit of Chongqing Three Gorges Water Conservancy and Electric Power plunges in Q3
BEIJING, Oct. 20 — Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd. said Thursday its net profit plunged 62.91 percent year-on-year in the third quarter to 9.88 million yuan (1.54 million U.S. dollars).
In the first nine months, the company’s net profit fell 77.46 percent year-on-year to 14.12 million yuan, with earnings per share of 0.05 yuan, it said in a statement to the Shanghai Stock Exchange.
The power generation company attributed the decrease in net profit to the gross profit decrease in the hydropower business caused by insufficient on-grid hydropower generation following lingering droughts in the country’s southwestern regions.
The share price of the company declined 3.30 percent to 12.00 yuan in the morning session Thursday.
Read the original article at Xinhua.