29 April 2005 – The high cost of coal in China has hit US energy company Alliant, who’s first quarter earnings have taken a tumble due to its ownership of eleven Chinese power plants.
Alliant’s net income for the first quarter of 2005 was $2.4m, compared to $34.1m in the same period a year earlier.
Errol Davis, Jr., Alliant’s chairman and CEO, said: “While our earnings from continuing operations were down significantly in the first quarter of 2005, this was driven largely by the valuation charges we incurred related to our generating facilities in China.”
It is now unclear as to whether the company will keep its foothold in China and serious doubts have been cast over the company’s future invest plans in the far east country.
Davis, Jr., said: “We intend to make a decision related to the future of our China business by July, and we will not make any more investments in this business at this time.”