Two mainland power producers are expected to post unexciting annual results early this week due to high coal costs, while China's largest oil and gas producer is tipped to report a record profit on the back of lofty oil prices. Red chip China Power International Development, chaired by former premier Li Peng's daughter Li Xiaolin, is projected to report today a net profit of 608.57 million yuan, up marginally from 605 million yuan in 2003, according to Thomson First Call's consensus poll on 10 brokerages. China's largest independent power producer, Huaneng Power International, led by Ms Li's brother Li Xiaopeng, is forecast to post a 1.05 per cent fall in net profit tomorrow to 5.37 billion yuan for last year. This could be the first earnings decline since the H share's listing in 1994. Both power companies have seen higher-than-expected rises in coal costs, after coal producers reneged on their one-year contracts following sharp price spikes in the spot market. Core Pacific-Yamaichi estimated in a research report that China Power's unit fuel costs rose 21.5 per cent last year, while UBS believed Huaneng's jumped 31.1 per cent. In Huaneng's case, the cost hike is expected to have more than offset a 6.1 per cent rise in average tariffs and a 25.7 per cent increase in generation volume. Meanwhile, on Wednesday, PetroChina is expected to post a 44.58 per cent jump in net profit to 100.65 billion yuan for last year, according to Thomson's consensus. This would surpass the US$11.84 billion (about 98.2 billion yuan) posted by HSBC Holdings, the world's second largest lender, this month. The stellar performance is supported by a 3.1 per cent rise in oil and gas output, as well as a 24.5 per cent rise in realised oil price.