EARINGS for China’s power utilities during the first three quarters of 2021 have plunged as the companies were squeezed by surging coal costs that they could not pass on to consumers.

Huadian Power International, a subsidiary of China Huadian Corp. reported Tuesday its net profit for the January-September period dropped 58 percent from a year earlier to 1.6 billion yuan (US$251 million), with a third-quarter loss of 1.8 billion yuan.

Huaneng Power International, a listed arm of China Huaneng Group, also said their earnings in the first nine months of the year dropped 91 percent year on year to 783.9 million yuan, with a third quarter loss of 3.5 billion yuan.

Both companies blamed the losses on cost increases from a surge in power demand at the same time coal prices jumped, with Huadian plainly saying in its statement that “the decrease in net profit was mainly due to the surge in the price of thermal coal.”

Other listed power generators are also preparing investors for losses.

Huadian Energy, also part of Huadian Group, forecast Oct. 16 a net loss in the January-September period of 522.9 million yuan, versus a loss of 173.1 million yuan a year earlier. The company will report earnings Friday.

That same day, Datang International Power Generation, part of China Datang Corp., said its profit over the first nine months of the year may fall by up to 100 percent from a year earlier to 2.67 billion yuan. Earnings will be released today.

(SD-Agencies)