On October 27, Binhai Energy released its third quarter earnings report. The report shows that total operating income from July to September 2011 was 1.024 billion yuan, a decrease of 24.25% over the same period of the previous year, and the net profit attributable to the parent company was -2859.15 million yuan, a year-on-year decrease of 623.57% compared to the same period of last year. The basic earnings per share -0.129 yuan/share, down 616.00% year-on-year. From January to September, the net profit attributable to the shareholders of the listed company was -43.77 million yuan, a year-on-year decrease of 17.13%.
For Binhai Energy, this year can be described as bumpy. In addition to the lack of performance, it was not long ago that it was reborn in the reunion.
Sustained rise in coal prices The low selling price of steam The sharp drop in net profit has caused a sharp drop in net profit. The company said that the main reason is that on October 19, 2010, the Company and its holding subsidiaries Guohua Energy and Tianjin Taida Jinlian Thermal Power Co., Ltd. Signed the "Steam Purchase and Purchase Contract Supplemental Agreement". The effective period of the contract was from January 1, 2010 to December 31, 2010. It was agreed to adjust the price of steam sales during the contract validity period from 143.91 yuan/ton (excluding tax) to 158.38. RMB/ton (excluding tax). The price adjustment revenues for January to September 2010 are all included in September 2010.
In addition, Binhai Energy expects 2011 net profit to be -6000.00--500 million yuan, a year-on-year decrease of 1215.00%--1029.00%.
In this regard, Binhai Energy said that due to the continuous rise in coal prices this year, the company's raw material costs continue to increase, the company actively seeks to adjust the steam sales price but has yet to determine the price adjustment range. The uncertainties affecting the accuracy of this performance forecast are the changes in the coal market price and the adjustment rate of the steam sales price.
It is understood that steam sales is the company's main business, steam sales prices are directly related to the company's profitability. However, the Tianjin Economic and Technological Development Zone government has formulated a relatively low fee for thermal products based on the economic development of the development zone and the need for investment promotion. In 2008, it was 147 yuan/ton (excluding tax), and in 2009 it was 150.39 yuan/ton, which was basically no increase. Therefore, the company's business faced tremendous pressure.
Some analysts said that about 90% of Binhai Energy's revenue is steam business income, and 10% is power business income. Domestic thermal coal prices have risen in a straight line since 2008 and are still operating at high levels. The company’s production costs for thermodynamic products remain high, but steam sales prices have not been high, which is the main reason for the company’s continuous loss. Main business profitability is basically difficult.
The main profit is expected to be restructured and failed. According to public information, since the reorganization of Binhai Energy in 2004, it has been mainly engaged in the production of steam and electricity. In recent years, with the high coal prices, the operating costs have become higher and higher. The company did not have autonomy over the sales price of the product, resulting in a loss of more than RMB 46 million in 2009. The company’s raw material cost pressure remained high in 2010. The net profit attributable to owners of the parent company from January to September was RMB 37.37 million. 2010 In order to avoid the fate of ST, the company relies on huge government subsidies.
In fact, the rise in coal prices and the low price of steam are the predicaments Binhai Energy has always faced, and it is also actively looking for a transition path.
However, it seems that Binhai Energy has yet to find a way out.
On September 19, the Mongolian Wang, the biggest reorganization party of Binhai Energy’s 920 million planned increase plan, proposed to withdraw from the project of increasing the energy of Binhai. On October 10, Binhai Energy released an announcement confirming the abortion of the planned increase plan.
Binhai Energy originally hoped to expand the original single thermal power business into a “thermoelectricity + information†dual business, and take the first step in business transformation. This time the nightmare was a soup, and Binhai Energy was reinstated as a loss.
Some electric power industry researchers believe that the goal of coastal energy development is not clear. The company transformed from the original coating chemical industry to an energy company. It was also preparing to shift from the energy industry to cloud computing. This reflects the company's lack of long-term development plans and goals and is also the main reason for restructuring failure. In addition, it is unlikely that the company will rely on its main business to lose money during the year. The road ahead will still look very difficult.
Where is the future of Binhai Energy going? stay tuned.
For Binhai Energy, this year can be described as bumpy. In addition to the lack of performance, it was not long ago that it was reborn in the reunion.
Sustained rise in coal prices The low selling price of steam The sharp drop in net profit has caused a sharp drop in net profit. The company said that the main reason is that on October 19, 2010, the Company and its holding subsidiaries Guohua Energy and Tianjin Taida Jinlian Thermal Power Co., Ltd. Signed the "Steam Purchase and Purchase Contract Supplemental Agreement". The effective period of the contract was from January 1, 2010 to December 31, 2010. It was agreed to adjust the price of steam sales during the contract validity period from 143.91 yuan/ton (excluding tax) to 158.38. RMB/ton (excluding tax). The price adjustment revenues for January to September 2010 are all included in September 2010.
In addition, Binhai Energy expects 2011 net profit to be -6000.00--500 million yuan, a year-on-year decrease of 1215.00%--1029.00%.
In this regard, Binhai Energy said that due to the continuous rise in coal prices this year, the company's raw material costs continue to increase, the company actively seeks to adjust the steam sales price but has yet to determine the price adjustment range. The uncertainties affecting the accuracy of this performance forecast are the changes in the coal market price and the adjustment rate of the steam sales price.
It is understood that steam sales is the company's main business, steam sales prices are directly related to the company's profitability. However, the Tianjin Economic and Technological Development Zone government has formulated a relatively low fee for thermal products based on the economic development of the development zone and the need for investment promotion. In 2008, it was 147 yuan/ton (excluding tax), and in 2009 it was 150.39 yuan/ton, which was basically no increase. Therefore, the company's business faced tremendous pressure.
Some analysts said that about 90% of Binhai Energy's revenue is steam business income, and 10% is power business income. Domestic thermal coal prices have risen in a straight line since 2008 and are still operating at high levels. The company’s production costs for thermodynamic products remain high, but steam sales prices have not been high, which is the main reason for the company’s continuous loss. Main business profitability is basically difficult.
The main profit is expected to be restructured and failed. According to public information, since the reorganization of Binhai Energy in 2004, it has been mainly engaged in the production of steam and electricity. In recent years, with the high coal prices, the operating costs have become higher and higher. The company did not have autonomy over the sales price of the product, resulting in a loss of more than RMB 46 million in 2009. The company’s raw material cost pressure remained high in 2010. The net profit attributable to owners of the parent company from January to September was RMB 37.37 million. 2010 In order to avoid the fate of ST, the company relies on huge government subsidies.
In fact, the rise in coal prices and the low price of steam are the predicaments Binhai Energy has always faced, and it is also actively looking for a transition path.
However, it seems that Binhai Energy has yet to find a way out.
On September 19, the Mongolian Wang, the biggest reorganization party of Binhai Energy’s 920 million planned increase plan, proposed to withdraw from the project of increasing the energy of Binhai. On October 10, Binhai Energy released an announcement confirming the abortion of the planned increase plan.
Binhai Energy originally hoped to expand the original single thermal power business into a “thermoelectricity + information†dual business, and take the first step in business transformation. This time the nightmare was a soup, and Binhai Energy was reinstated as a loss.
Some electric power industry researchers believe that the goal of coastal energy development is not clear. The company transformed from the original coating chemical industry to an energy company. It was also preparing to shift from the energy industry to cloud computing. This reflects the company's lack of long-term development plans and goals and is also the main reason for restructuring failure. In addition, it is unlikely that the company will rely on its main business to lose money during the year. The road ahead will still look very difficult.
Where is the future of Binhai Energy going? stay tuned.
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