China’s Huaneng Power says annual profit jumped 26.9 per cent on lower coal costs

PUBLISHED : Tuesday, 22 March, 2016, 11:12pm
UPDATED : Tuesday, 22 March, 2016, 11:12pm

Share

Huaneng Power International, China’s largest power producer, said its 2015 net profit rose 26.9 per cent to 13.65 billion yuan (HK$17.77 billion) from 2014, helped by a 13.7 per cent fall in each tonne of coal used.

The profit was less than the 15.74 billion yuan average estimate of 18 analysts polled by Thomson Reuters.

Revenue edged up 2.8 per cent to 128.9 billion yuan, with an 8.9 per cent increase in output partially offset a 2.6 per cent decrease in average power prices.

Huaneng will “actively take part in market competition and participate in the development of the electricity market ... with an aim to increase our market share and equipment operation efficiency,” the company said in a filing to Hong Kong’s stock exchange Tuesday.

The company is expected to face additional competition this year amid ongoing market liberalisation.

The company is aiming to achieve total power output of 315 billion kilo-watt-hours this year, representing a drop of 1.7 per cent from last year.

Huaneng’s Singapore unit swung to a net loss of 59 million yuan, owing to ongoing power capacity oversupply which saw its average power price plunge 32 per cent from 2014.

A final dividend of 47 fen per share was proposed, up from 38 fen in 2014.