China Power International Development, a listed unit of state-owned China Power Investment Group, said its interim results would be 'significantly' affected by higher coal costs and an unrealised loss related to a convertible bond issued by associate Shanghai Electric Power.
China Power did not give the expected increase in coal costs or the unrealised loss. Citigroup's head of Asia-Pacific utilities research Pierre Lau estimated its coal cost per unit of output to be up 11 per cent year on year in the first half.
Mr Lau said interim net profit may have fallen 8 per cent to 282 million yuan, as the increment more than offset a 4 per cent rise in generation.
Its 25 per cent-held Shanghai-listed affiliate Shanghai Electric issued a one billion yuan, five-year convertible bond.
