Sinofert expects power rationing to affect fertiliser output (updated)

Sinofert Holdings

23/08/2022 11:18

(Updates with background, comment)
    Aug 23 (Reuters) - China's state-owned Sinofert Holdings
 0297.HK  said that power rationing in the south of China will
have some impact on its nitrogen and phosphate fertiliser
production but that the situation is "under control". 
    The impact of this year's power rationing however is milder
than last year's, said a company executive during an earnings
call on Tuesday.
    "This year's abnormally high temperatures have led to a
relatively large increase in residential electricity consumption
... which led to power rationing in some areas," said Gao Jian,
Chief Financial Officer at China's top fertiliser producer. 
    "Compared with last year's situation where thermal power was
limited due to coal supply issues, the impact on power
consumption this year is relatively mild. In particular, it will
have some impact on our nitrogen and phosphate fertiliser
production. Currently, the impact is under control."    
    China's southwestern Sichuan province imposed power
restrictions on industrial users from Aug. 15 to Aug. 25 as it
grapples with dwindling hydropower output and surging household
electricity demand amid its worst heatwave in 60 years.
 urn:newsml:reuters.com:*:nL1N2ZR0FP  urn:newsml:reuters.com:*:nL1N2ZY059
    It also later began limiting electricity supply to homes,
offices and malls.  urn:newsml:reuters.com:*:nL4N2ZT0ZT
    Sichuan relies on dams to generate more than 80% of its
electricity, but soaring temperatures and little rain this
summer reduced hydropower generation while boosting power demand
for air conditioning.
    

 (Reporting by Emily Chow and Beijing newsroom
Editing by David Goodman, Kirsten Donovan)
 ((emily.chow@thomsonreuters.com; +862120830020; Reuters
Messaging: emily.chow.thomsonreuters.com@reuters.net))