Tariff cut to squeeze Shaanxi gas distributor’s profits

The gas distributor for the Chinese province Shaanxi expects profits to be squeezed by plans to cut tariffs.
By Staff reporter 12 September 2017 0 27543

Shaanxi Provincial Natural Gas, the gas distributor for the Chinese province of Shaanxi, expects profits to be squeezed after the provincial government issued a notice directing non-residential end-user tariffs to be cut, the local Quanjing News reported.

The cut is expected to lead to a revenue decline of RMB 12 million ($1.85 million), while net profits are expected to fall by RMB 11 million, equal to 2.2% of the company’s 2016 profit of RMB 509 million.

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