Yangtze River Business Daily News ● Yangtze River Business Daily reporter Shen Yourong
SDIC Power, a large national power enterprise (600886. SH) global investment has increased.
On the evening of October 11, SDIC Power announced that the Inchijiao project in United Kingdom with a total investment of up to 4.166 billion pounds (equivalent to about 38.452 billion yuan) has met the conditions for construction, and the company will participate in the construction of the project.
According to the announcement, the company participated through its wholly-owned subsidiary, Redstone Energy Co., Ltd. (hereinafter referred to as "Redstone Energy"), which was established in United Kingdom, and contributed 962 million pounds (about 8.884 billion yuan at the real-time exchange rate on October 12).
SDIC Power said that the investment in the construction of the Yingqijiao project is in line with the company's overseas strategic layout and planning goals, and is conducive to further increasing the company's overseas high-quality clean energy assets.
As an important investment platform for the power business of the State Development and Investment Group, it has been listed in Shanghai and London. In the first half of this year, the company's overseas market revenue was 1.061 billion yuan, accounting for 3.91% of the company's operating income.
SDIC Power is a comprehensive energy and power listed company focusing on clean energy, combining water, fire, wind and light, and in recent years, the company has vigorously developed clean energy business. As of the end of June this year, the company's installed capacity of clean energy accounted for 68.53%.
Stable operating performance is an important feature of SDIC Power. In the first half of this year, the company made a profit of more than 3.7 billion yuan, continuing to maintain growth year-on-year.
Participate in the development of wind power resources in the United Kingdom
SDIC Power is actively going overseas to explore.
According to the announcement, SDIC Power will participate in the construction of major wind power projects in the United Kingdom.
According to the announcement, SDIC Power, through its United Kingdom wholly-owned subsidiaries Redstone Energy and Ireland Power Company (hereinafter referred to as "ESB"), established a joint venture company, InchCape Offshore Limited (hereinafter referred to as "ICOL Company"), in November 2020, holding 50% of the shares respectively. As the main company, ICOL is fully responsible for the development and subsequent construction of the Enchizo Point project.
The project is located in the North Sea region of Scotland, about 15 kilometers away from the coast of Angus in the east of Scotland, with a planned site area of about 150 square kilometers, a water depth of 40 meters to 60 meters, and an average annual wind speed of 9.9 m/s. The planned installed capacity of the project is 1080MW, and 72 15MW wind turbines are planned to be installed.
The total dynamic investment of the Yingqijiao project is 4.166 billion pounds (including transmission projects), and the capital contribution of Redstone Energy is expected to be no more than 962 million pounds according to the shareholding ratio, and other shareholders will contribute accordingly according to the shareholding ratio, and the remaining funds will be financed by banks and other financial institutions.
According to the announcement, the project has obtained all the permits required for development and construction and a long-term power purchase agreement (contract for difference) granted by the United Kingdom government, and is ready to start construction. The investment of SDIC Power has been deliberated and approved by the board of directors of the company, and does not need to be submitted to the general meeting of shareholders of the company for deliberation. The investment has been submitted to the State-owned Assets Supervision and Administration Commission of the State Council and approved in principle, and the National Development and Reform Commission and the Ministry of Commerce are required to perform the investment filing.
The feasibility study of the Yingqijiao project has been completed, and the feasibility study report review has been completed by the General Institute of Hydropower and Water Conservancy Planning and Design of PowerChina Group. According to the feasibility study report, the return on investment of the Enchiko project is 6.58%, and the return on equity contribution is 8.00%. SDIC Power intends to provide a guarantee amount of no more than 962 million pounds for Redstone Energy.
The project is planned to start in December this year, complete the construction of the main project such as wind turbine foundation manufacturing and booster station in 2025, start the wind turbine manufacturing, the first batch of wind turbine power generation in November 2026, and all 72 units will be put into operation for power generation by the end of August 2027, and the project will be completed with a construction period of about 33 months.
SDIC Power said that the Ingqi Point project is a high-quality and scarce offshore wind power resource in the United Kingdom market, with close offshore distance, good wind resources, large installed capacity, and a 15-year inflation-adjusted CFD contract signed with the United Kingdom government. The investment in the construction of the Enchizo project is in line with the company's overseas strategic layout and planning objectives, which is conducive to further increasing the company's overseas high-quality clean energy assets and enhancing the company's core competitiveness.
At present, SDIC Power's overseas business is mainly distributed in United Kingdom, Indonesia and Thailand, etc., and its contribution to the company's performance is limited.
In the first half of this year, the company's overseas market revenue was 1.061 billion yuan, accounting for 3.91% of operating income, and the gross profit margin was 6.78%.
The annual dividend rate in the past three years has exceeded 50%
As a large-scale power project development, construction and operation enterprise, SDIC Power has strong market competitiveness.
From the perspective of installed capacity, SDIC Power is a comprehensive energy and power listed company focusing on clean energy, water, fire, wind and solar, with an installed capacity of 21,304,500 kilowatts, making it the third largest listed company in China and in a leading position in the industry. The company is vigorously developing the clean energy business, and as of the end of June this year, its installed capacity of clean energy accounted for 68.53%. Among them, hydropower accounted for 50.78%, new energy accounted for 17.75%, and the rest were clean and efficient thermal power projects.
From the perspective of business distribution, in the domestic market, the company is mainly distributed in more than 20 provinces, autonomous regions and municipalities directly under the central government, such as Sichuan, Yunnan and Guangxi, among which the provinces and cities in southwest China are the focus. In the first half of this year, the operating income contributed by the southwest region was 12.934 billion yuan, accounting for 47.72% of the operating income.
SDIC Power was backdoor listed in 2002, and since its listing, the company's profitability has continued to increase as a whole.
According to the data, since 2013, except for 2021, the company's annual net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") has exceeded 3 billion yuan. Among them, from 2020 to 2023, the annual net profit will be 5.516 billion yuan, 2.437 billion yuan, 4.079 billion yuan, and 6.705 billion yuan respectively, with a year-on-year change of 15.99%, -55.82%, 66.11%, and 64.31%. In 2023, the company's net profit hit a record high. As for the rare decline in net profit in 2021, the company explained that it was mainly affected by market factors, and the coal burning cost of the company's thermal power enterprises increased sharply year-on-year, and the power generation cost was inverted.
In the first half of this year, SDIC Power's operating income and net profit were 27.102 billion yuan and 3.744 billion yuan respectively, a year-on-year increase of 2.79% and 12.19%.
In recent years, SDIC Power has increased its cash dividends. From 2021 to 2023, the cash dividends distributed by the company will be 1.219 billion yuan, 2.050 billion yuan, and 3.688 billion yuan respectively, with dividend rates of 50.01%, 50.25%, and 55.01% respectively, all exceeding 50%. Previously, most of the company's annual dividend rate was around 35%.
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