Growth in energy consumption and acquisitions boost turnover of mainland independent power producer
H share Huaneng Power International, China's largest independent power producer, has posted a better-than-expected first-half net profit of 2.28 billion yuan (HK$2.13 billion), up 28.58 per cent year on year.
The result was 4.26 per cent higher than an average profit forecast of 2.19 billion yuan from six brokers.
The company's first-half turnover surged 33.74 per cent year on year to 10.51 billion yuan.
The rise was due to the acquisition of the Shidongkou, Changxing, Taicang and Huaiyang power plants, the addition of two generating units at its Dezhou plant, growth in power consumption in its operating areas and the purchase of a 25 per cent stake in power firm Shenzhen Energy Group.
The H share's total first-half power generation rose 39.67 per cent year on year to 41.07 billion kilowatt-hour (kWh). Its operating profit margin slid to 29.36 per cent from 30.79 per cent in the same period last year, due mainly to a year-on-year rise of about 0.83 per cent in fuel costs per kWh of power generated.
Fuel costs accounted for 54.3 per cent of its total operating costs.