Huaneng Power International, Inc.: RMB 8.520 Billion Net Profit Attributed to Equity Holders of the Company in 2016

2017-03-21 23:59 1419

BEIJING, March 21, 2017 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI" or "the Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its audited annual operating results for the twelve months ended December 31, 2016 prepared under the International Financial Reporting Standards, in which the Company recorded consolidated operating revenue of RMB113.814 billion (equivalent to approximately USD16.407 billion, based on the exchange rate of USD1 to RMB6.9370 as of December 30, 2016) , representing a decrease of 11.71% compared to the same period last year, and net profit attributed to equity holders of the Company amounted to RMB8.520 billion (equivalent to approximately USD 1.228 billion), representing a decrease of 37.59% compared to the same period last year. The decrease was primarily attributable to lowered on-grid tariff for coal-fired power generators, administered by the National Development and Reform Commission ("NDRC"), reduced domestic power generation of the Company and increased volume of market power transactions. Earnings per share amounted to RMB0.56 (equivalent to approximately USD 0.08), and earnings per ADS amounted to RMB22.40 (equivalent to approximately USD 3.23). The Board is satisfied with the Company's results last year.

The Board of the Company proposed to declare a cash dividend of RMB0.29 (inclusive of tax) for each ordinary share of the Company held by shareholders.

In 2016, the Company actively responded to the new changes of power system reform and the significant rise of coal price, and took proactive initiatives to progress the relevant work, so as to maintain overall stable operation in clean and safe production and strict cost control, thereby achieving a better annual operating objective. Meanwhile, the Company continued to fulfill the duties of providing sufficient, reliable and green power to the society.

Total power generated by the Company's domestic operating power plants for the year on consolidated basis amounted to 313.690 billion kWh, representing a decrease of 2.13% year-on-year. The electricity sold amounted to 295.800 billion kWh, representing a decrease of 2.05% year-on-year. The annual average utilization hours of the Company's domestic power plants reached 3,921 hours. The utiliztion hours of coal-fired power generating unit was 4,107 hours. In most of the areas where the Company's coal-fired power plants are located, the utilization hours of the Company was in a leading position within those areas.

By continuously reinforcing cooperation with major coal mines, innovating cooperation mode and procurement strategy, optimizing regional supply structure, accurately judging coal market trends, targeting high-quality low-cost imported coal resources in advanced basis, and reducing the unit procurement price of standard coal, the Company controlled the fuel procurement costs in a better way, while the coal price rose significantly in the second half of the year. The unit fuel cost of the domestic power plants throughout the year occurred for sales of power was RMB 170.62/MWh, representing a year-on-year decrease of 1.76%.

The Company continued to lead its peers in terms of production safety, technical, economic and energy consumption indicators. The average equivalent availability ratio of coal-fired units of the Company's domestic power plants was 95.05% and its weighted average house consumption rate was 4.57%. The average yearly coal consumption rate of the Company's coal-fired units for the power generated was 290.34 grams/kWh, which was 0.62 grams/kWh lower than that of the same period last year. The average yearly coal consumption rate of the Company's coal-fired units for the power sold was 307.69 grams/kWh, representing a decrease of 0.87 grams/kWh from that of the same period last year.

In 2016, the Company signed agreement to acquire interests of four companies from parent company for the consideration of approximately RMB15.114 billion, so that it expanded the asset scale, operational scale and territory scope of the Company. Upon the completion of the transaction on 1 January 2017, the Company increased its controlled generating capacity by 15,607 MW, and generating capacity under construction by 3,666 MW. Besides, the Company completed the acquisition of 100% equity interest in Luoyang Sunshine Thermal Power (with an installed capacity of 270MW).

The construction of power generating projects of the Company progressed smoothly. In 2016, the controlled generating capacity of the newly commissioned coal-fired power, wind power, and the photovoltaic power generating units of the Company was 850MW, 328 MW, and 99 MW respectively.

As of 31 December 2016, the Company's controlled and equity-based generation capacity was 83,878 MW and 76,618 MW, respectively. Besides, the Company further commissioned coal-fired generating units and photovoltaic units put in operation respectively recently. As of 21 March 2017, the Company's controlled and equity-based generating capacities were 101,116 MW and 89,545 MW, respectively.

In terms of the overseas business, in 2016 Tuas Power Ltd. ("Tuas Power"), a wholly-owned subsidiary of the Company in Singapore, maintained safe and stable operation of the generation units throughout the year. The total market share of Tuas Power in the power generation market for the whole year was 21.5%, representing a year-on-year decrease of 0.2 percentage point, mainly attributable to the ongoing oversupply in the power market in Singapore as a result of the fact that a large number of generating units were put into operation in recent years.

In 2017, the Company will further firmly establish a sense of leadership, competitive awareness, market awareness and risk awareness. The Company will adhere to problem orientated, strengthen innovation drive, undertake responsibility and mission, enhance corporate vitality, and place more emphases on quality and efficiency, transformation and upgrading, standardizing management and risk prevention work, constantly improve the profitability, competitive strength and sustainable development capability of the Company.

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Encl: The 2016 consolidated financial information of the Company and its subsidiaries prepared under IFRS:

About the Company

Huaneng Power International, Inc. is one of China's largest listed power producers with controlled generation capacity of 101,116MW and equity-based generation capacity of 89.545MW. The power plants of the Company are located in 24 provinces, municipalities and autonomous regions in China. The Company 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.