China Resources Power surprises with H1 profit up almost 80pc

China Resources Power Holdings (CRP), which is embroiled in controversy over a 2010 coal mining investment deal, posted a forecast-beating 78 per cent jump in interim profit on the back of lower coal costs.

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Shareholders attend an extraordinary meeting for China Resources Power Holdings in Hong Kong. The electricity generator has been accused of deliberately overpaying for coal assets in 2010. Photo: SCMP

Published: 12:35pm, 19 Aug 2013Updated: 3:50am, 20 Aug 2013

China Resources Power Holdings (CRP), which is embroiled in controversy over a 2010 coal mining investment deal, posted a forecast-beating 78 per cent jump in interim profit on the back of lower coal costs.

First-half net profit of the Hong Kong-listed mainland power producer was HK$5.33 billion, up from HK$3 billion yuan in the year-earlier period.

It was better than the HK$4.84 billion average estimate of four brokerage analyst polled by Bloomberg.

First-half turnover grew 4.5 per cent year-on-year to HK$32.3 billion, on the back of a 9.3 per cent rise in power output to 83.8 billion kilowatt-hours, the company said in a filing to the Hong Kong Stock Exchange.

CRP’s average standard coal cost for its power plants decreased 18 per cent during the reported period from the same period last year.

The company’s share price dropped 6.5 per cent year-to-date, underperforming the Hang Seng Index’s 0.8 per cent fall and rival Huaneng Power International’s 13per cent gain.