Huaneng Power International, Inc. Profit Attributable To Shareholders Decreased By 96.05% For The First Half Year Of 2017

2017-08-01 22:55 2476

BEIJING, Aug. 1, 2017 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI", or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its unaudited operating results for the first half year of 2017.

For the first half year of 2017, the Company and its subsidiaries recorded consolidated operating revenue of RMB 71.434 billion (equivalent to approximately USD 10.545 billion, based on the exchange rate of USD 1 to RMB 6.7744 as of June 30,  2017), representing an increase of 34.97% compared to the same period of last year. The net profit attributable to equity holders of the Company was RMB 0.244 billion (equivalent to approximately USD 0.036 billion), representing a decrease of 96.05% compared to the same period of last year. The earnings per share was RMB 0.02 (equivalent to approximately USD 0.003) and earnings per ADS amounted to RMB 0.80 (equivalent to approximately USD 0.12). The main reason for the decrease of the net profit is the rise of fuel prices.

During the first half of 2017, against the challenges of new change in power system reforms and drastic rise of coal prices, the Company actively participated in market competition, strived to open up the market and controlled costs, thus laying the foundation for attaining the annual target.

Power Generation. In the first half of this year, the power plants of the Company in operation within China achieved a total power generation of 186.685 billion kWh on a consolidated basis, representing an increase of 27.80% from the same period of last year, as well as an aggregate sales volume of 176.121 billion kWh, representing an increase of 27.55% from the same period of last year, and with 1,901 utilization hours, representing an increase of 62 hours compared to the same period of the previous year. In addition, the aggregate power generation of Tuas Power Ltd., which is wholly owned by the Company, accounted for a market share of 21.5%, representing a slight decrease of 0.1 percentage point from the same period of last year.

Cost Control. The coal market prices followed the trend from Q4 last year and continued to be high and volatile for the first half of 2017. With a close watch on market development trends, the relevant State authorities took a series of actions to free up advanced coal production capacity, secure coal supply and stabilize coal prices. After thorough market research and analysis, the Company strengthened and deepened cooperation with large coal companies and strictly adhered to long- and medium-term thermal coal contracts to ensure full delivery of coal supplies. Meanwhile, the Company put in place strict measures to curb prices as well as regulate bidding procurement of market coals, and optimize imported coals so as to fully control the fuel costs.

Energy Conservation and Environmental Protection. The Company attaches great importance to energy conservation and environmental protection and has so far equipped all of its coal-fired generating units with desulphurization, denitrification and dust removal devices in compliance with applicable environmental standards. The Company carried on with the ultra-low emission technical upgrade on its coal-fired generating units as planned. For the first half of this year, the Company completed the ultra-low emission upgrade of 36 generating units, which means more than 80% (on an accumulative basis) of the Company's coal-fired generating units have met the ultra-low emission standard.

Project Development and Construction. For the first half of 2017, a total capacity of 702.18MW had been put into operation by the Company's power generation projects , including Unit 1 and Unit 2 (100MW) of Liaoning Yingkou Xianrendao Thermal Power Plant, the 24 wind power units with a total capacity of 48MW of Hebei Zhuolu Dabao Wind Power Plant, the 106.4MW (12×4.2+14×4) wind power units of Jiangsu Rudong Offshore Wind Farm, the 52MW (26×2) wind power units of Jiangxi Linghuashan Wind Power Plant, and 17 Photovoltaic Power Plant with a total capacity of 395.78MW including Shandong Zhanhua Qingfenghu Photovoltaic Power Plant. As of June 30, 2017, the Company had a controlled installed capacity of 101,698MW and an equity-based installed capacity of 90,796MW, of which 13.36% was from clean energy sources (gas turbine, hydro, wind, photovoltaic and biomass power generation).

In the second half of the year, the Company will continue to focus on safe and clean production, adhere to the principle of quality and efficiency and expedite power structure adjustments; actively participate in various market transactions and strive to increase market share; further control fuel costs and expenses, and endeavour to enhance operational efficiency; and continue to create long-term, stable and increasing return for the shareholders of the Company.

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Encl: The consolidated financial information of the Company and its subsidiaries prepared under IFRS for the six months ended June 30, 2017:

About the Company

Huaneng Power International, Inc. is one of China's largest listed power producers with controlled generation capacity of 101,698 MW and equity-based generation capacity of 90,796MW. Its power plants are located in 25 provinces, municipalities and autonomous regions in China. It also has a wholly-owned power company in Singapore.

For enquiries, please contact:

Huaneng Power International, Inc.                       
Ms. MENG Jing / Ms. ZHAO Lin                                   
Tel: (8610) 6608 6765 / 6322 6596              
Fax: (8610) 6322 6888                       

Wonderful Sky Financial Group Limited
Ms. Iris Au Yeung / Ms. Tiffany Ruan / Ms. Echo Ma
Tel:    (852) 2851 1038
Fax:    (852) 2865 1638
Email: / /  

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Source: Huaneng Power International, Inc.