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China’s two leading nuclear power companies reported a decline in first-half profits, primarily driven by falling domestic energy prices amid a faster-growing electricity spot market and increasing integration of renewable energy sources into the grid.
One company’s net profit dropped 16 percent to approximately $839 million for the six months ending June 30, marking its first decline since 2019. Revenue also decreased slightly by 0.5 percent to about $5.5 billion. The other firm experienced a 3.7 percent decrease in profit, reaching around $896 million, despite a 9.4 percent rise in revenue to $6.2 billion.
Based in Shenzhen, the first company saw a 6.9 percent increase in electricity output to roughly 113.36 billion kilowatt-hours, while the second’s output rose 12.1 percent to about 93.55 billion kWh. However, reforms in the energy market affected their profitability.
The first company’s market-based energy trading accounted for 56.1 percent of total output in the first half, up from 52.4 percent the previous year, which contributed to lower earnings due to reduced prices. The second company did not publish similar figures, but industry estimates suggest that profits from its renewable energy segment plummeted 66 percent to approximately $48 million, mainly explaining the overall profit decline.
Both firms are adopting new strategies to manage the risks associated with market fluctuations. The first is focusing on expanding its customer base and strengthening marketing efforts to mitigate exposure to spot market volatility, while the second has established three independent energy sales units to deepen market penetration and improve trading strategies.
Additionally, they are exploring various applications of nuclear energy to offset the financial impacts of market reforms on their projects.
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