December 03, 2008

Zhangze Electric sees net loss in Q1 on rising coal prices

XFN-Asia reported that Shanxi Zhangze Electric Power Co Ltd expects to have suffered a net loss of CNY about 71 million in the first quarter of 2008 due to rising coal prices.

The report added that in the first quarter of 2007, the company booked a net profit of CNY 120.49 million or CNY 0.1 per share.

Shanxi Zhangze Electric Power Co Ltd is the listed arm of China Power Investment Corp, one of the country's top five power producers. It also the first listed power company to project a net loss in the first quarter.

Coal prices have been rising sharply on the domestic market. Power companies have complained that although costs have been rising they have not been able to fully pass on the higher costs through increased electricity prices.