The three H-share independent power producers (IPP) are expected to report mixed results this month, with last year's net profits ranging from 7.9 per cent growth at Huaneng Power International, to an 8.1 per cent fall at Shandong International Power Development.
Beijing Datang Power Generation is set to post a 0.2 per cent year-on-year rise in net profit last year to 1.44 billion yuan (about HK$1.35 billion), according to 27 brokerages polled by Thomson First Call.
Strong output growth was expected to be offset by higher finance costs and the initially low temporary tariffs of new plants that came on stream last year. It earlier reported a 21.9 per cent year-on-year growth in power generation last year to 32.27 billion kilowatt hours, helped by the new plants.
However, stripping out contribution from the new plants, output grew 2 per cent, compared with 11.8 per cent in its main operating area of Beijing-Tianjin-Tangshan, HSBC Securities analyst David Yip said in a report.
Beijing Datang booked a 97 million yuan finance loss in last year's first half on an interest rate swap on a US dollar loan, but in a report Lehman Brothers Securities said the loan was paid down by a small amount in the second half and could reduce the full-year loss to 90 million yuan.
Analysts expect Huaneng Power - China's largest IPP - to post on March 12 a 7.9 per cent net profit growth to 3.92 billion yuan. Their estimates have been revised down from levels above four billion yuan after taking into account higher depreciation and tax rates of its newly acquired plants, and lower tariffs on energy sold in excess of planned generation.