Huaneng Power International, Inc. Net Profit Attributable to Equity Holders of the Company Representing an Increase of 89.14% in 2013

Mar 18, 2014, 12:08 ET from Huaneng Power International, Inc.

BEIJING, March 18, 2014 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI" or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its audited annual operating results for the twelve months ended December 31, 2013 prepared under the International Financial Reporting Standards, in which the Company recorded consolidated operating revenue of RMB133.833 billion (equivalent to approximately USD21.951 billion, based on the exchange rate of USD1 to RMB6.0969 as of December 31, 2013), representing a decrease of 0.10% over 2012, and net profit attributable to equity holders of the Company of RMB 10.426 billion (equivalent to approximately USD1.710 billion), representing an increase of 89.14% over 2012. Earnings per share amounted to RMB 0.74 (equivalent to approximately USD0.12), and earnings per ADS amounted to RMB29.60 (equivalent to approximately USD 4.85). The Board is satisfied with the Company's operating results in 2013.

The Board of the Company proposed to declare a cash dividend of RMB 0.38 (inclusive of tax) for each ordinary share of the Company held by shareholders for the year of 2013.

In 2013, the Company had made new progress in many aspects, including power generation, operation, energy saving and environmental protection, management improvement, project development. In respect of domestic business, the Company overcame difficulties posed by intensified competition in the electricity market, strived to explore markets, increased power generation, adjusted fuel procurement strategy, fostered strict control over fuel costs, thereby delivering record high operating results. Concurrently, the Company managed to fulfill the duties of providing sufficient, reliable and green energy to the society.

In 2013, total power generated by the Company's operating power plants in China amounted to 317.481 billion kWh, representing an increase of 4.98% year-on-year. The electricity sold aggregated to 300.003 billion kWh, representing an increase of 5.10% year-on-year. The annual average utilization hours of the Company's domestic generating plants reached 5,036 hours, of which the utilization hours of the thermal units reached 5,089 hours, which was 77 hours higher than the average utilization hours of thermal units in China.

The Company purchased a total of 134 million tons of natural coal. Through adopting two strategies, namely enhancing long term cooperation with major suppliers and increasing the imported coal, the coal supply structure was further improved, thus the fuel cost was effectively controlled. The fuel costs per unit of power sold of the Company's domestic power plants were RMB 218.59 per MWh, representing a decrease of 12.50% compared to last year.

The Company led the industry in terms of technical, economic and energy consumption indicators. The average equivalent availability ratio of the Company's domestic power plants was 94.53%, and its weighted average house consumption rate was 5.28%. The Company's average coal consumption rate for the power generated was 291.26 grams/kWh, which is 1.69 grams/kWh lower than that of the same period last year. The Company's average coal consumption rate for power sold was 308.26 grams/kWh, representing a decrease of 2.08 grams/kWh from that of the same period last year. At the same time, the Company continued to intensify the technological renovation of the existing units, proceeded with the desulfurization and denitration of the thermal units as scheduled and proactively updated the flue gas dust removal devices of coal-fired units, with a view to enhancing the Company's performance in energy-saving and environmental protection and securing the leading market position, and achieving the goal of "green development".

The controlled generating capacity of the newly commissioned domestic coal-fired, gas turbine and wind generating units of the Company was 3,072 MW, 382 MW and 48 MW, respectively. As of 18 March 2014, the Company's controlled and equity-based generating capacity was 66,795 MW and 59,993 MW, respectively.

In 2013, Tuas Power Ltd. ("Tuas Power"), a wholly-owned subsidiary of the Company in Singapore, maintained safe and stable operation of the generation units throughout the year. In conjunction with commencement of operation of Phase I (101 MW) of Tembusu Multi-Utility Complex Project and No.5 combined cycle unit of Tuas Power (405.9 MW), the total market share of Tuas Power in the power generation market for the whole year was 20.6%, representing a decrease of 4.6 percentage points, thereby realizing a net profit attributable to shareholders of the Company of RMB 0.113 billion, which represented a decrease of 89.16%. It was mainly attributable to the increase of newly operated generation units in the electricity market of Singapore, which intensified competitions in the power and gas market, resulting in a decline in return levels in power generation business in 2013. The Company made goodwill impairment provision for overseas projects.

In 2013, the Company delivered promising performance in the capital market. The Company was included as one of the constituent stocks of Hang Seng China 50 Index and was awarded the "Best Listed Company Award" of the China Securities Golden Bauhinia Awards 2013. The Company has been on the league table of "Platts Top 250 Global Energy Listed Companies Award" for five years and ranked 96th for the year, which is much higher than that of last year.

In 2014, the Company will further pursue improvement in efficiency, structural adjustment, management enhancement, stability and efficiency of profitability, sustainability and its leading competitive edge in the sector. The Company will strive to realize an annual power generation of 325 billion kWh at the Company's domestic power plants, and attain a utilization hour of 5,000 hours.

The Company will strengthen the competitiveness of marketing activities and optimize the production, operation and administration systems; insist in fostering the establishment of a stable and reliable fuel supply system; enhance the operation and management of the Tuas Power and endeavor to extend its market share; thus creating long term, stable and increasing returns for shareholders of the Company.

~ End ~

Encl: The 2013 consolidated financial information of the Company and its subsidiaries prepared under IFRS.

HUANENG POWER INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEET

AS AT DECEMBER 31, 2013

(Amounts expressed in thousands)

As at

As at

 December 31, 2013

December  31, 2012

RMB

US$

RMB

ASSETS

Non-current assets

Property, plant and equipment

181,415,181

29,755,315

177,013,627

Investments in associates      and joint ventures

16,678,694

2,735,602

14,596,771

Available-for-sale financial assets

3,111,164

510,286

3,052,822

Land use rights

4,491,285

736,651

4,297,183

Power generation licence

3,837,169

629,364

4,084,506

Mining rights

1,922,655

315,350

1,922,655

Deferred income tax assets

652,358

106,998

532,387

Derivative financial assets

14,245

2,336

13,723

Goodwill

12,758,031

2,092,544

14,417,543

Other non-current assets

3,165,067

519,128

3,082,894

Total non-current assets

228,045,849

37,403,574

223,014,111

Current assets

Inventories

6,469,026

1,061,035

7,022,384

Other receivables and assets

2,072,981

340,005

2,990,395

Accounts receivable

15,562,121

2,552,465

15,299,964

Trading securities

-

-

93,753

Derivative financial assets

91,727

15,045

55,268

Bank balances and cash

9,433,385

1,547,243

10,624,497

Assets held for sale

557,671

91,468

-

Total current assets

34,186,911

5,607,261

36,086,261

Total assets

262,232,760

43,010,835

259,100,372

As at

As at

December 31, 2013

December  31, 2012

RMB

US$

RMB

EQUITY AND LIABILITIES

Capital and reserves attributable to equity

    holders of the Company

Share capital

14,055,383

2,305,333

14,055,383

Capital surplus

17,347,068

2,845,228

17,719,077

Surplus reserves

7,085,454

1,162,140

7,085,454

Currency translation differences

(817,243)

(134,042)

(35,937)

Retained earnings

-Proposed dividend

5,341,046

876,027

2,951,631

-Others

19,438,957

3,188,334

14,354,526

62,450,665

10,243,020

56,130,134

Non-controlling interests 

12,742,309

2,089,965

9,830,208

Total equity

75,192,974

12,332,985

65,960,342

Non-current liabilities

Long-term loans

60,513,671

9,925,318

72,564,824

Long-term bonds

23,726,550

3,891,576

22,884,688

Deferred income tax liabilities

2,032,417

333,353

2,011,729

Derivative financial liabilities

383,405

62,885

837,005

Other non-current liabilities

1,404,898

230,428

1,247,464

Total non-current liabilities

88,060,941

14,443,560

99,545,710

Current liabilities

Accounts payable and other liabilities

25,321,374

4,153,155

19,992,901

Taxes payable

1,647,925

270,289

1,275,430

Dividends payable

166,270

27,271

70,839

Salary and welfare payables

188,837

30,973

217,967

Derivative financial liabilities

43,591

7,150

88,641

Short-term bonds

15,135,024

2,482,413

35,449,763

Short-term loans

37,937,046

6,222,350

27,442,076

Current portion of long-term loans

12,796,956

2,098,928

9,056,703

Current portion of long-term bonds

5,690,650

933,368

-

Liabilities held for sale

51,172

8,393

-

Total current liabilities

98,978,845

16,234,290

93,594,320

Total liabilities

187,039,786

30,677,850

193,140,030

Total equity and liabilities

262,232,760

43,010,835

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=Rmb6.0969 announced by the People's Bank of China on December 31, 2013. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at December 31, 2013, or at any other certain rate.

 

HUANENG POWER INTERNATIONAL, INC. 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2013

(Amounts expressed in thousands, except per share data)

For the year ended December 31,

2013

2012

RMB

US$

RMB

Operating revenue

133,832,875

21,950,971

133,966,659

Tax and levies on operations

(1,043,855)

(171,211)

(672,040)

Operating expenses

Fuel

(73,807,817)

(12,105,794)

(82,355,449)

Maintenance

(3,856,975)

(632,612)

(2,846,521)

Depreciation

(11,293,522)

(1,852,338)

(11,032,748)

Labor

(5,762,884)

(945,215)

(5,112,484)

Service fees on transmission and      transformer facilities of HIPDC 

(140,771)

(23,089)

(140,771)

Purchase of electricity

(4,955,603)

(812,807)

(7,101,878)

Others

(8,860,409)

(1,453,266)

(7,747,828)

Total operating expenses

(108,677,981)

(17,825,121)

(116,337,679)

Profit from operations

24,111,039

3,954,639

16,956,940

Interest income

170,723

28,002

175,402

Financial expenses, net

Interest expense

(7,787,472)

(1,277,284)

(8,897,097)

Exchange gain/(loss) and bank charges, net

94,109

15,436

(166,778)

Total financial expenses, net

(7,693,363)

-

(1,261,848)

(9,063,875)

Share of profits of associates and joint ventures

615,083

100,885

622,358

Loss on fair value changes of financial assets/liabilities

(5,701)

(935)

(1,171)

Other investment income

224,908

36,888

187,131

Profit before income tax expense

17,422,689

2,857,631

8,876,785

Income tax expense

(4,522,671)

(741,799)

(2,510,370)

Net profit 

12,900,018

-

2,115,832

6,366,415

For the year ended December 31,

2013

2012

RMB

US$

RMB

Other comprehensive (loss)/income, net of tax

Items that may be reclassified subsequently to profit or loss:

Fair value changes of available-for-sale       financial asset

(106,244)

(17,426)

98,516

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

(35,481)

(5,820)

30,070

Effective portion of cash flow hedges

417,891

68,542

(325,375)

Translation differences of the financial     statements of foreign operations

(782,063)

(128,272)

536,231

Other comprehensive (loss)/income, net of tax

(505,897)

(82,976)

339,442

Total comprehensive income

12,394,121

2,032,856

6,705,857

Net profit attributable to:

- Equity holders of the Company 

10,426,024

1,710,053

5,512,454

- Non-controlling interests

2,473,994

405,779

853,961

12,900,018

2,115,832

6,366,415

Total comprehensive income attributable to:

- Equity holders of the Company 

9,920,884

1,627,201

5,850,701

- Non-controlling interests

2,473,237

405,655

855,156

12,394,121

2,032,856

6,705,857

Earnings per share attributable to the

    equity holders of the Company 

(expressed in RMB per share)

    - Basic and diluted

0.74

0.12

0.39

Dividends paid

2,951,631

484,120

702,867

Proposed dividend

5,341,046

876,027

2,951,631

Proposed dividend per share

(expressed in RMB per share)

0.38

0.06

0.21

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=Rmb6.0969 announced by the People's Bank of China on December 31, 2013. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at December 31, 2013, or at any other certain rate.

About the Company

The Company is one of China's largest listed power producers with controlled generation capacity of 66,795MW and equity-based generation capacity of 59,993MW currently. 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 / Ms. Shine Li/Ms. Irene Gao Tel:     (852) 2851 1038 Fax:   (852) 2865 1638 Email:  olivezhang@wsfg.hk / ericatao@wsfg.hk / shineli@wsfg.hk / irenegao@wsfg.hk 

 

SOURCE Huaneng Power International, Inc.