BEIJING, August 2, 2016 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI", the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its unaudited operating results prepared in accordance with the International Financial Reporting Standards ("IFRS") for the six months ended June 30, 2016.
For the first half of 2016, The Company and its subsidiaries recorded consolidated operating revenue of RMB 52.924 billion (equivalent to approximately USD 7.981 billion, based on the exchange rate of USD1 to RMB 6.6312 as of June 30, 2016), representing a decrease of 18.96% compared to the same period of last year, and net profit attributable to equity holders of the Company of RMB 6.177 billion (equivalent to approximately USD 0.931 billion), representing a decrease of 30.99% compared to the same period of last year. Earnings per share amounted to RMB 0.41, and earnings per ADS amounted to RMB 16.40 (equivalent to approximately USD 2.47). The decrease is mainly attributable to the on grid tariff cut for coal-fired power by National Development and Reform Commission, the year-on-year decrease of power generation by the company and the increase supply of unplanned electricity sold in market.
During the first half of 2016, facing the external structural changes in the State's economy and the continued reform of the power sector, the Company focused on promoting the quality and efficiency enhancement and upgrading, proactively responding to and participating in the market competition, striving to expand the market, and exercising strict control in costs and expenditure. All the work has achieved comparatively good results, which laid a solid foundation for the completion of 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 146.080 billion kWh, representing an decrease of 8.60% from the same period last year, as well as an electricity sold of 138.075 billion kWh, a decrease of 8.35% from the same period of last year, and 1,839 utilization hours, representing a decrease of 262 hours compared to the same period in the previous year. The accumulated power generation of Tuas Power Limited in Singapore, which is wholly owned by the Company, accounted for a market share of 21.6%, representing a decrease of 0.8 percentage point compared to the same period last year.
Cost Control. In the first half of the year, China's coal supply-side structural reform was orderly processed. The production limitation and reduction policy has been strictly implemented in major coal producing areas. The government intensified the inspection on illegal coal mines and closure and suspension of mines. The prices of coal in both coal producing areas and at ports were on the rise, and coal supply and demand became a bit tight. However, the Company fully analyzed and forecast the market trend, reinforced and deepened its cooperation with large-sale coal companies, highlighted the bids and price comparison for open-market coal, and at the same time improved coal importation, thereby effectively controlling fuel costs.
Energy Conservation and Environmental Protection. The Company attaches great importance to energy conservation and environmental protection. To date, all of the coal-fired generating units of the Company have been equipped with desulphurization, denitrification and dust emission devices, with all indicators meeting the environmental protection requirements. At the same time, the Company proposes to implement super low emission reform to generation units in certain areas according to schedule. In the first half of 2016, the Company has completed reform of 20 generation units, achieving a total of 54 generation units of the Company that meet the standard for super low emission, account for 44.3% of the reform target.
Project Development and Construction. In the first half of 2016, the Company's projects having commenced operation reached a total capacity of 240MW, including the Hubei Yingcheng Cogeneration Unit No. 1 (50MW), the Jiangsu Nanjing Cogeneration Unit No. 1 (50MW), the 25 wind power units with a total capacity of 50MW of Jiangsu Tongshan Wind Farm, the 25 wind power units with a total capacity of 50MW of Anhui Huaining Shijing Wind Farm, the 10MW photovoltaic power units of Liaoning Yingkou Cogeneration, the 10MW photovoltaic power units of Liaoning Dandong Power and the 20MW photovoltaic power units of Hebei Kangbao Xitan Photovoltaic. As of 30 June 2016, the Company had a controlled generation capacity of 82,571 MW and an equity-based generation capacity of 75,403 MW. The proportion of clean energy (gas turbine, hydro-power, wind power and PV) reached 12.87%.
During the second half of the year, The Company will continue to focus on safety production, quality and efficiency, accelerate structural adjustment of power supply. The company will also persist in and focus on effective generating power reducing the cost of fuel and strive to improve its operation efficiency, proactively participate in the reform of power system and cope with market changes, and persistently create a long-term, stable and growing return to 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, 2016:
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About the Company
Huaneng Power International, Inc. is one of China's largest listed power producers with controlled generation capacity of 82,571 MW and equity-based generation capacity of 75,403MW. Its power plants are located in 22 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
Email: zqb@hpi.com.cn
Wonderful Sky Financial Group Limited
Ms. Tiffany RUAN / Ms. Yan LI
Tel: (852) 2851 1038
Fax: (852) 2865 1638
Email: po@wsfg.hk / Tiffanyruan@wsfg.hk / yanli@wsfg.hk
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