Huaneng Power International, Inc. Announces 2013 Interim Results

The Profit Attributable to Equity Holders of the Company was RMB5.623billion, Representing an Increase of 164.98% Compared to the Same Period Last Year

Jul 30, 2013, 11:42 ET from Huaneng Power International, Inc.

BEIJING, July 30, 2013 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI", the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its unaudited operating results for the six months ended June 30, 2013.

For the six months ended June 30, 2013, the Company and its subsidiaries recorded consolidated operating revenue of RMB 64.062 billion (equivalent to approximately USD 10.368 billion), representing a decrease of 4.64% compared to the same period last year.  The profit attributable to equity holders of the Company was RMB 5.623 billion (equivalent to approximately USD 0.91 billion), representing an increase of 164.98% compared to the same period last year. The earnings per share were RMB 0.40 and earnings per ADS were RMB 16.00 (equivalent to approximately USD 2.59). The increase of the Company's net profit was mainly attributable to the fall of the fuel cost from the same period last year and effective controls of other costs and expenses.

For the first half of 2013, in spite of the national economic restructuring and decrease of total electricity consumption growth nationwide compared to the same period of last year, the Company took advantage of the continuing decline of coal market prices by encouraging power generation and coal price controls by its power plants, exercised strict control in expenditure and strengthened internal fuel management. For the first half of 2013, the Company accomplished each of its business plans and substantially improved its overall profitability.

Power Generation.  For the first half of this year, the operating power plants of the Company within China achieved total power generation of 149.483 billion kWh on consolidated basis and aggregate electricity sales volume of 141.268 billion kWh, representing a decrease of 0.46% and 0.26%, respectively, from the same period of last year; the operating units of those power plants registered 2,398 utilization hours, representing a decrease of 130 hours compared to the same period of previous year.  The aggregate power generation of Singapore Tuas Power Ltd. accounted for a market share of 20.9% in Singapore, representing a decrease of 5.8 percentage points from the same period of last year, which was mainly due to the intensified competition as a result of operation of many new generating units in the Singaporean market.

Cost Control.  The coal oversupply experienced in 2012 continued during the first half of 2013 as a result of soft national and world economy, leading to steady fall of coal price.  The Company promoted direct purchase from large mines to power plants by seizing the opportunity in the coal market and ample capacity of railway transportation.   The Company also made various efforts to lower average coal purchase price, including increasing the purchase of cost-effective imported coal; optimizing purchase, transportation and contractual structures; strengthening the management of purchase plans and internal controls; and rationalizing inventory arrangement based on production needs.

Energy Conservation and Environmental Protection. The Company attaches great importance to energy conservation and environmental protection, and has equipped all of its coal-fired generating units with desulphurization devices.  For the first half of this year, a total of 62 coal-fired generating units representing approximately 60% of the Company's power generation capacity were equipped with denitrification devices.  The Company also strengthened its management over the operation and maintenance of environmental protection facilities so as to improve their operating efficiency and in-operation rate.

In order to meet the requirements of the newly issued Standards for the Emission of Air Pollutants for Thermal Power Plants (GB13223-2011), the Company will further its environmental protection efforts during the Twelfth Five-Year Plan period by modifying certain desulphurization devices to improve operating efficiency, installing denitrification devices on all coal-fired generating units, and using advanced dust control technologies to enhance dust removal efficiency.

Project Development and Construction. For the first half of 2013, the Company obtained approval for the "replacing small units with large ones" Project (2×660 MW) of Zhejiang Changxing Power Plant and the Hunan Subaoding Wind Farm Project (150 MW).

The generating units of the Company that commenced operation during the first half of this year included Unit 6 (1,000 MW) of Henan Huaneng Qinbei Power Plant, Unit 3 (1,036 MW) and Unit 4 (1,036 MW) of Guangdong Huaneng Haimen Power Plant, two units (2x191 MW) of Jiangsu Huaneng Jinling Gas Turbine Power Plant, and the Tembusu Multi-Utilities Complex Project Phase I (101MW) of Tuas Power.

As of 30 June 2013, the Company had controlled generating capacity of 66,341 MW and equity-based generating capacity of 59,155 MW.

For the second half of this year, the Company will continue to accelerate transformation of its development mode, further consolidate and optimize its geographical coverage, redouble efforts for structural adjustment, strengthen its investment and presence in clean energy, and effectively promote synergy in the sector so as to accomplish the targets for this year.

The major tasks of the Company for the second half of 2013 include: strengthening safe production management by ensuring safe, stable and economical operation of its generating units; reinforcing marketing efforts in the electricity market and maintaining its leading position in terms of utilization hours; striving to reduce financial costs by strengthening costs controls and optimizing debt structure; and continuously improving construction projects management and ensuring sustainable, stable and sound development focusing on profitability.

About the Company The Company is one of China's largest listed power producers with controlled generation capacity of 66,341 MW and equity-based generation capacity of 59,155 MW. The power plants of the Company are located in 19 provinces, municipalities and autonomous regions in China. The Company also has a wholly-owned power company in Singapore.

For enquiries, please contact:

Huaneng Power International, Inc.                   Ms. MENG Jing / Ms. ZHAO Lin                                Tel: (8610) 6608 6765 / 6322 6596              Fax: (8610) 6641 2321                        Email: zqb@hpi.com.cn

Wonderful Sky Financial Group Limited Ms. Olive Zhang/ Ms. Erica Tao / Mr. Henry Li/Ms. Irene Gao Tel: (852) 2851 1038 Fax: (852) 2865 1638 Email: olivezhang@wsfg.hk / ericatao@wsfg.hk /  henryli@wsfg.hk / irenegao@wsfg.hk

 

HUANENG POWER INTERNATIONAL, INC.

CONDENSED CONSOLIDATED INTERIM BALANCE SHEET (UNAUDITED) AS AT June 30, 2013

(Amounts expressed in thousands)

As at

As at

June 30, 2013

December 31, 2012

RMB 

US$ 

RMB

ASSETS

Non-current assets

Property, plant and equipment 

176,422,192

28,553,287

177,013,627

Investments in associates

  /jointly controlled entities 

16,218,984

2,624,983

14,596,771

Available-for-sale financial assets

3,265,700

528,542

3,052,822

Land use rights

4,354,293

704,726

4,297,183

Power generation licence

3,887,294

629,144

4,084,506

Mining rights

1,922,655

311,175

1,922,655

Deferred income tax assets

454,829

73,612

532,387

Derivative financial assets

9,777

1,582

13,723

Goodwill

13,870,400

2,244,874

14,417,543

Other non-current assets

2,892,826

468,193

3,082,894

Total non-current assets

223,298,950

36,140,118

223,014,111

Current assets

Inventories

6,544,903

1,059,269

7,022,384

Other receivables and assets

3,229,417

522,669

2,990,395

Accounts receivable

13,689,339

2,215,569

15,299,964

Trading securities

-

-

93,753

Derivative financial assets

49,453

8,004

55,268

Bank balances and cash

15,702,540

2,541,399

10,624,497

Total current assets

39,215,652

6,346,910

36,086,261

Total assets

262,514,602

42,487,028

259,100,372

EQUITY AND LIABILITIES

Capital and reserves attributable to equity

   holders of the Company

Share capital

14,055,383

2,274,812

14,055,383

Capital surplus

17,363,907

2,810,285

17,719,077

Surplus reserves

7,085,454

1,146,755

7,085,454

Currency translation differences

(664,307)

(107,516)

(35,937)

Retained earnings

- Proposed dividend

-

-

2,951,631

- Others

19,976,709

3,233,158

14,354,526

57,817,146

9,357,494

56,130,134

Non-controlling interests

11,094,431

1,795,593

9,830,208

Total equity

68,911,577

11,153,087

65,960,342

Non-current liabilities

Long-term loans

68,413,203

11,072,427

72,564,824

Long-term bonds

25,408,624

4,112,293

22,884,688

Deferred income tax liabilities

1,966,932

318,341

2,011,729

Derivative financial liabilities

435,860

70,542

837,005

Other non-current liabilities

1,201,236

194,415

1,247,464

Total non-current liabilities

97,425,855

15,768,018

99,545,710

Current liabilities

Accounts payable and other liabilities

22,548,564

3,649,402

19,992,901

Taxes payable

1,542,048

249,575

1,275,430

Dividends payable

3,518,004

569,376

70,839

Salary and welfare payables

203,869

32,995

217,967

Derivative financial liabilities

71,140

11,514

88,641

Short-term bonds

25,360,079

4,104,436

35,449,763

Short-term loans

29,656,560

4,799,806

27,442,076

Current portion of long-term loans

9,288,230

1,503,266

9,056,703

Current portion of long-term bonds

3,988,676

645,553

-

Total current liabilities

96,177,170

15,565,923

93,594,320

Total liabilities

193,603,025

31,333,941

193,140,030

Total equity and liabilities

262,514,602

42,487,028

259,100,372

For the convenience of the reader, translation of amounts from Renminbi (Rmb) into United States dollars (US$) has been made at the rate of US$1.00=Rmb6.1787 announced by the People's Bank of China on June 28, 2013. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at June 30, 2013, or at any other certain rate.

 

 

HUANENG POWER INTERNATIONAL, INC.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2013

(Amounts expressed in thousands, except per share data)

For the six months ended June 30,

2013

2012

RMB

US$

RMB

Operating revenue

64,062,329

10,368,254

67,180,473

Tax and levies on operations

(521,253)

(84,363)

(318,556)

Operating expenses

Fuel

(35,677,117)

(5,774,211)

(43,271,787)

Maintenance

(1,433,270)

(231,970)

(1,309,178)

Depreciation

(5,605,718)

(907,265)

(5,612,839)

Labor

(2,409,750)

(390,009)

(2,192,451)

Service fees on transmission and

transformer facilities of HIPDC

(70,386)

(11,392)

(70,386)

Purchase of electricity

(2,664,797)

(431,288)

(3,823,905)

Others

(3,364,720)

(544,567)

(3,070,444)

Total operating expenses

(51,225,758)

(8,290,702)

(59,350,990)

Profit from operations

12,315,318

1,993,189

7,510,927

Interest income

83,862

13,573

77,042

Financial expenses, net

     Interest expense

(3,948,892)

(639,114)

(4,564,904)

  Exchange gain/(loss) and bank charges, net

85,959

13,912

(51,308)

  Total financial expenses, net

(3,862,933)

(625,202)

(4,616,212)

Share of profits of associates/jointly controlled entities

319,493

51,709

290,666

Loss/(gain) on fair value changes of financial assets/liabilities

7,427

1,202

(1,036)

Other investment income

185,576

30,035

185,333

Profit before income tax expense

9,048,743

1,464,506

3,446,720

Income tax expense

(2,288,062)

(370,315)

(994,643)

Net profit

6,760,681

1,094,191

2,452,077

Other comprehensive income/(loss), net of tax

Items that may be reclassified subsequently to profit or loss:

Fair value changes of available-for-sale financial asset

9,659

1,563

35,809

Share of other comprehensive (loss)/income of investees accounted for under the equity method

(38,022)

(6,154)

13,357

Effective portion of cash flow hedges

308,856

49,987

(463,510)

Translation differences of the financial statements of foreign operations

(629,007)

(101,801)

236,457

Other comprehensive loss, net of tax

(348,514)

(56,405)

(177,887)

Total comprehensive income 

6,412,167

1,037,786

2,274,190

Net profit attributable to:

- Equity holders of the Company

5,622,740

910,020

2,121,963

- Non-controlling interests

1,137,941

184,171

330,114

6,760,681

1,094,191

2,452,077

Total comprehensive income attributable to:

- Equity holders of the Company

5,274,863

853,717

1,943,512

- Non-controlling interests

1,137,304

184,068

330,678

6,412,167

1,037,785

2,274,190

Earnings per share attributable to the equity holders of the    Company(expressed in RMB per share)

     - Basic and diluted

0.40

0.06

0.15

Dividends paid

-

-

-

For the convenience of the reader, translation of amounts from Renminbi (Rmb) into United States dollars (US$) has been made at the rate of US$1.00=Rmb6.1787 announced by the People's Bank of China on June 28, 2013. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at June 30, 2013, or at any other certain rate.

SOURCE Huaneng Power International, Inc.