State Grid registers $5bn in quake losses
5 June 2008
State Grid, China's largest electricity distributor, said repairs to its national grid after the earthquake would cost US$5 billion, Bloomberg reported. The company said it would receive a direct economic loss of more than US$1.7 billion because of the Sichuan earthquake. State Grid's profit in the first five months of the year fell 80% year-on-year to US$417 million because of the earthquake and heavy snowstorms at the beginning of the year. A spokesperson said the company faced "huge pressure" in meeting its profit target for this year because of the natural disasters. It has spent US$10 billion on maintenance and expansion of its grid from January to May, a 14.5% increase from a year earlier. The company said it has fixed almost all transmission lines and substations damaged by the earthquake. State Grid distributes electricity to 80% of China.