Huaneng Power International, Inc. Net Profit Attributable to Equity Holders for The First Half Year Of 2021 Decreased By 26.14%

Rhea-AI Summary

Huaneng Power International (NYSE: HNP) reported consolidated operating revenue of RMB 95.116 billion (approximately USD 14.724 billion) for H1 2021, a 20.21% increase year-on-year. However, net profit attributable to equity holders decreased by 26.14% to RMB 4.019 billion (approx. USD 622 million) due to higher coal prices. Total electricity sold rose to 207.926 billion kWh, up 20.80%. The company is enhancing its coal procurement strategy and continues to invest in green energy, with clean energy accounting for 21.07% of installed capacity.

Positive

• Operating revenue increased by 20.21% to RMB 95.116 billion.
• Total electricity sold rose by 20.80% to 207.926 billion kWh.
• Company's market-based transaction power ratio improved by 11.20 percentage points.

Negative

• Net profit attributable to equity holders decreased by 26.14% to RMB 4.019 billion.
• Increase in coal prices affected profit margins and power sales.

BEIJING, July 27, 2021 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI", or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its unaudited operating results prepared under IFRS for the six months ended 30 June 2021.

For the six months ended 30 June 2021, the Company and its subsidiaries recorded consolidated operating revenue of RMB95.116 billion (equivalent to approximately USD 14.724 billion, based on the exchange rate of USD 1 to RMB6.4601 as of 30 June 2021), representing an increase of 20.21% compared to the same period of last year. The net profit attributable to equity holders of the Company was RMB4.019 billion (equivalent to approximately USD 622 million), representing a decrease of 26.14% compared to the same period of last year. The earnings per share was RMB0.19 and earnings per ADS amounted to RMB 7.54 (equivalent to approximately USD 1.167). The main reason for the YoY decrease of the net profit is due to reduced profits from business of domestic power sales and heat supply resulting from increased coal prices.

In the first half of the year, based on the new development stage, the Company implemented the new development concept, integrated into the new development pattern and, in accordance with the annual work deployment and requirements, coordinated the epidemic prevention and control, and operation reform and development, achieved the main production and operation performance goals, which have laid a solid foundation for the whole year's task.

Power Generation. In the first half of the year, the Company's total electricity sold by the power plants within China on consolidated basis amounted to 207.926 billion kWh, representing an increase of 20.80% over the same period last year. The average utilization hours of the Company's power plants within China were 1,980 hours, representing an increase of 263 hours over the same period last year. The company's market-based transaction power ratio was 61.09%, representing an increase of 11.20 percentage points over the same period last year.

Cost Control. In the first half of the year, coal supply and demand were at a high level. However, due to the limited release of domestic production, tight supply of overseas resources, continued improvement in the macro economy, and insufficient clean energy output, the growth of supply fell below the level of demand growth. The price pivot of coal has moved up significantly. The Company scientifically studied and assessed market trends, flexibly adjusted its procurement strategy, strengthened resource development, improved the fulfillment of long-term contract performance, and actively played the role of imported coal to supplement the supply. Thus, the supply of thermal coal for Company was generally safe and stable. Notwithstanding the increase in coal price, the industry benchmarking of Company remained advanced.

Energy Conservation and Environmental Protection. In the first half of the year, the Company steadily promoted the three-year action plan for safety production special rectification, heating renovation, energy saving and emission reduction, wastewater treatment in key areas, and closure of coal yards. The safety, economy, and environmental protection operation of power generation units continued to improve, and the Company's pollutant emission concentration and energy consumption indicators continued to maintain the industry lead. The Company's cumulative coal consumption for power supply was 288.47 g/kWh, a year-on-year decrease of 2.10 g/kWh; the average emission concentrations of sulfur dioxide, nitrogen oxides, and soot from thermal power units were all better than the ultra-low emission standards. In the national benchmarking of the energy efficiency level of thermal power units released by China Electricity Council, the Company has 52 units with good results.

Project Development and Construction. In the first half of the year, the Company proceeded smoothly in the construction of power generation projects, adding 470 MW of wind power controlled generation capacity, 190 MW of solar energy controlled generation capacity, and 30 MW of biomass controlled generation capacity. In the meantime, some of the power plants invested or controlled by the Company underwent changes in capacity. As of June 30, 2021, the Company's controlled generation capacity was 114,042 MW, and the equity generation capacity was 99,891 MW. Low-carbon clean energy (wind power, solar energy, hydro-power, combined cycle, biomass power) accounted for 21.07% of the installed capacity.

Overseas Business. In the first half of the year, the accumulated power generation of Tuas Power Ltd. ("Tuas Power"), a wholly-owned subsidiary of the Company in Singapore, accounted for a market share of 20.5%, representing a decrease of 1.0 percentage point compared to the same period last year. The sales revenue was RMB5.667 billion, representing an increase of 0.60% over the same period last year. The pre-tax loss of Singapore business was RMB55 million, representing a decrease in pre-tax profit of RMB91 million over the same period last year (pre-tax profit of RMB36 million). In the first half of the year, the pre-tax profit of the Sahiwal project in Pakistan was RMB407 million, representing an increase of RMB60 million compared to the same period last year.

In the second half of the year, the Company will adhere to the concept of safe development and accelerate the pace of green development, promote the optimization and upgrade of the coal-fired power structure, deepen the promotion of quality and efficiency enhancement, focus on ensuring the quantity and price of coal, actively do a good job in power marketing, strictly control costs and expenses, and strive to complete the annual operating performance; continue to create long-term, stable and increasing returns to the shareholders of the Company.

~End~

Encl: The consolidated financial information of the Company and its subsidiaries prepared under IFRS for the six months ended 30 June 2021.

About Huaneng Power International, Inc.

Huaneng Power International, Inc. is one of China's largest listed power producers with controlled generation capacity of 114,042 MW and equity based generation capacity of 99,891 MW. The power plants of the Company are located in 26 provinces, autonomous regions and municipalities in China. The Company also has a wholly owned power company in Singapore, and an invested power company in Pakistan.

For enquiries, please contact:

Huaneng Power International, Inc. 

Mr. CHEN Zhelu / Ms. LIU Tianyu
Tel:  (8610) 6322 6554/6322 6595
Fax: (8610) 6322 6888
Email: zqb@hpi.com.cn

Wonderful Sky Financial Group Limited

Ms. Ketrina Yang / Ms. Layla Zheng
Tel: (852) 3970 2286
Fax: (852) 3102 0210
Email: hpi@wsfg.hk

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SOURCE Huaneng Power International, Inc.

FAQ

What were Huaneng Power's revenue results for the first half of 2021?

Huaneng Power reported consolidated operating revenue of RMB 95.116 billion, a 20.21% increase from the previous year.

How did Huaneng Power's net profit for H1 2021 compare to last year?

The net profit attributable to equity holders decreased by 26.14% to RMB 4.019 billion compared to the same period last year.

What is the significance of the increase in electricity sold by Huaneng Power?

The total electricity sold increased by 20.80% to 207.926 billion kWh, indicating strong operational performance.

How is Huaneng Power adapting to rising coal prices?

The company is adjusting its coal procurement strategy and enhancing resource management to mitigate impacts from rising coal prices.