BEIJING 6/18/12 (PennWell) -- Hydropower owner and developer China Hydroelectric Corporation announces record profits through the first quarter of 2012.
Even in a period usually projected as a net loss due to China's seasonal precipitation patterns, the corporation was able to post banner numbers.
"In light of the challenges that China Hydroelectric faced in fiscal 2011, I am gratified to report several positive developments so far in fiscal 2012," says Chief Executive Officer John D. Kuhns. Kuhn said above-average rainfalls in China's eastern provinces -- particularly Fujian and Zhejiang -- produced record consolidated net revenue, gross profit, operating income and earnings before interest, taxes, deprecation and amortization (EBITDA).
Numbers provided by the company show China Hydroelectric's consolidated revenue of UUS22.5 million is a 105% year-over-year increase, while the company's adjusted EBITDA increased 202% to $16.9 million.
"This is in stark contrast to our financial results for the first quarter of 2011 when precipitation in all four provinces where we have power projects fell well below historical average levels," Kuhns says.
Still, Kuhns says favorable tariff increases at some of China Hydroelectric's facilities should impact the company's future revenues. "The prices that the grids pay us for the electric power we generate have increased for six of our 26 power projects, which represent 21.5% of our total installed capacity," Kuhns says. "The positive effect of these six tariff increases, which range from 5.8% to 17.0%, equates to an increase in estimated net revenue and operating income in excess of $1 million annually at average precipitation levels.
"While we cannot predict when tariffs might be increased for our other power projects, or the magnitude thereof, we remain hopeful that we will see additional tariff increases."
HydroWorld.com reported in February that China Hydroelectric had entered into an agreement with the Fujian Dachuang Group, which purchased the16-MW Yuanping hydropower plant for $22 million.