Huaneng Power International, Inc.: The Profit Attributable to Equity Holders of the Company Increased by 31.47% Compared to the Same Period Last Year

Aug 25, 2015, 10:24 ET from Huaneng Power International, Inc.

BEIJING, Aug. 25, 2015 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI", the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its unaudited operating results prepared in accordance with the International Financial Reporting Standards ("IFRS") for the six months ended June 30, 2015.

For the first half of 2015, The Company and its subsidiaries recorded consolidated operating revenue of RMB65.305billion (equivalent to approximately USD10.682 billion, based on the exchange rate of USD1 to RMB6.1136 as of June 30, 2015), representing an increase of 1.08% compared to the same period of last year, and net profit attributable to equity holders of the Company of RMB 8.951 billion (equivalent to approximately USD1.464 billion), representing an increase of 31.47% compared to the same period of last year. Earnings per share amounted to RMB 0.62, and earnings per ADS amounted to RMB24.80 (equivalent to approximately USD 4.06). The profit increase was mainly due to reduced domestic fuel costs, and the profit contribution from the newly acquired power plants and the operation of new generating units.

During the first half of 2015, in face of the structural changes in the State's economy and the stagnant growth of total electricity consumption nationwide compared to the same period of last year, the Company seized the favorable situation of the decline in coal market prices, demanded power plants to grasp power generation and at the same time controlled coal prices. Through strict control in expenditures, the Company improved its profitability substantially, and accomplished well comparatively each of the business plans in the first half of 2015.

Power Generation.  In the first half of this year, the power plants of the Company in operation within China achieved a total power generation of 159.816 billion kWh, representing an increase of 5.32% from the same period of last year, as well as an electricity sold of 150.653 billion kWh, an increase of 4.95% from the same period of last year, and with 2,101 utilization hours, representing a decrease of 273 hours compared to the same period of previous year. The accumulated power generation of Tuas Power Limited in Singapore, which is wholly owned by the Company, accounted for a market share of 22.4%, representing an increase of 0.8 percentage point compared to the same period last year (which was 21.6%).

Cost Control.  Affected by the slowdown in the development of the economy in China, the demand for coal decreased. Coal supply still outstripped demand in the coal market, and the coal prices dropped significantly. Seizing the opportunity from the prevailing loose coal market and the transportation by railway, and further shifting and adjusting business modes and structures, the Company continued to reinforce its co-operation with large-scale coal companies, adopting the price-competitive approach in purchase of coal in the market, and at the same time strengthening the management of suppliers in order to have a full control of fuel costs.

Energy Conservation and Environmental Protection. The Company attaches great importance to energy conservation and environmental protection. To-date, all of the coal-fired generating units of the Company have been equipped with desulphurization, denitrification and dust emission devices, with all indicators meeting with the environmental protection requirements. At the same time, the Company proposes to implement super low emission reform to generation units in certain areas according to schedule. In the first half of 2015, the Company has completed reform to 10 generation units, thereby achieving a total of 18 generation units of the Company that meet with the indicators for super low emission.

Project Development and Construction. In the first half of 2015, the Company obtained approvals in projects with a total capacity of 4,919 MW, including Jiangxi Jinggangshan Photovoltaic (21 MW), Hainan Yangpu Co-generation (700 MW), Anhui Chaohu Phase II (1320 MW), Beijing Co-generation Phase III (998 MW), Chongqing Jinfengshan Wind Power (110MW), Jiangsu Guanyun Co-generation (50 MW), Huichang Photovoltaic of Jiangsu Taicang Power Plant (20 MW), Jiangsu Suzhou Gas Turbine (400 MW), Jiangsu Rudong Off-shore Wind Power (300 MW) and Jiangxi Ruijin Phase II (1,000 MW).

In the first half of 2015, the Company's newly increased generation capacity was 2,081 MW, including No.2 coal-fired generation unit (350 MW) of Huaneng Yingcheng Thermal Power Co., Ltd., No.1 coal-fired generation unit (660 MW) of Huaneng Anyuan Power Generation Co., Ltd., the 5 MW photovoltaic (PV) units out of a total of 10 MW distributed PV modules project of Zhejiang Si'an Power

Plant, the 35x2 MW power generation units of Huaneng Hunan Subaoding Wind Farm Project, the 24x2 MW wind turbines at Huaneng Hubei Jieshan Wind Farm Phase I Project, the 100x2 MW wind turbines at Huaneng Gansu Jiuquan Wind Power Phase II Project and the 24x2 MW wind turbines at Huaneng Gansu Qiaowan Sanbeiyi Wind Farm Project and Nos.1 and 2 coal-fired generation units (2x350 MW) of Huaneng Luoyang Co-generation Co., Ltd. as at 30 June 2015, the controlled generation capacity of the Company reached 80,424 MW, and the equity based generation capacity reached 71,667 MW. The proportion of clean energy (gas turbine, hydro-power, wind power and PV) reached 11.48%.

During the second half of the year, the Company will continue to focus on safety production, strive to strengthen the management and improve its operation efficiency, reinforce the adjustment in structure and industry synergy, proactively respond to and participate in the reform of power system, and persistently create a long-term, stable and growing return to the shareholders of the Company.

Encl: The consolidated financial information of the Company and its subsidiaries prepared under IFRS for the six months ended June 30, 2015.

About Huaneng Power International, Inc.

Huaneng Power International, Inc. is one of China's largest listed power producers with controlled generation capacity of 80,424 MW and equity-based generation capacity of 71,667MW. Its power plants are located in 21 provinces, municipalities and autonomous regions in China. It also has a wholly-owned power company in Singapore.

For Enquires, Please Contact

Huaneng Power International, Inc. Ms. MENG Jing / Ms. ZHAO Lin Tel: (86 10) 6608 6765 / 6322 6596 Fax:(86 10) 6641 2321 E-mail: zqb@hpi.com.cn

Wonderful Sky Financial Group Limited Ms. Erica Tao / Ms. Shiloh Xiang Tel:  (852) 2851 1038 Fax: (852) 2865 1638 Email: ericatao@wsfg.hk / shilohxiang@wsfg.hk

HUANENG POWER INTERNATIONAL, INC.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINACIAL POSITION (UNAUDITED)

AS AT JUNE 30, 2015

(Amounts expressed in thousands)

As at

As at

June 30, 2015          

December  31, 2014

RMB

US$

RMB

ASSETS

Non-current assets

Property, plant and equipment

215,722,036

35,285,599

188,379,057

Investments in associates and joint ventures

 

18,814,992

 

3,077,563

 

17,626,910

Available-for-sale financial assets

5,379,208

879,876

4,333,377

Land use rights

7,937,224

1,298,290

4,953,844

Power generation licence

3,655,516

597,932

3,720,959

Mining rights

2,406,567

393,642

1,922,655

Deferred income tax assets

567,185

92,774

884,274

Derivative financial assets

41,929

6,858

40,598

Goodwill

12,719,023

2,080,447

11,725,555

Other non-current assets

4,052,869

662,927

3,719,255

Total non-current assets

271,296,549

44,375,908

237,306,484

 

Current assets

Inventories

6,054,347

990,308

6,702,274

Other receivables and assets

4,313,206

705,510

3,411,720

Accounts receivable

13,717,037

2,243,692

14,881,963

Derivative financial assets

94,181

15,405

261,135

Bank balances and cash

10,155,332

1,661,105

12,608,192

Total current assets

34,334,103

5,616,020

37,865,284

Total assets

305,630,652

49,991,928

275,171,768

EQUITY AND LIABILITIES

Capital and reserves attributable to equity

holders of the Company

Share capital

14,420,383

2,358,738

14,420,383

Capital surplus

20,970,717

3,430,175

19,622,199

Surplus reserves

8,140,030

1,331,463

7,196,349

Currency translation differences

(1,402,778)

(229,452)

(1,194,819)

Retained earnings

32,612,736

5,334,457

30,085,379

74,741,088

12,225,381

70,129,491

Non-controlling interests

17,125,638

2,801,236

14,653,215

Total equity

91,866,726

15,026,617

84,782,706

 

Non-current liabilities

Long-term loans

67,209,165

10,993,386

57,638,458

Long-term bonds

16,254,344

2,658,719

22,725,535

Deferred income tax liabilities

2,832,699

463,344

1,810,755

Derivative financial liabilities

396,050

64,782

649,513

Other non-current liabilities

3,177,893

519,807

2,718,680

Total non-current liabilities

89,870,151

14,700,038

85,542,941

 

Current liabilities

Accounts payable and other liabilities

25,673,967

4,199,484

27,035,864

Taxes payable

2,105,147

344,338

1,858,024

Dividends payable

6,969,115

1,139,936

431,681

Salary and welfare payables

328,576

53,745

171,262

Derivative financial liabilities

332,645

54,411

832,727

Short-term bonds

19,213,739

3,142,786

18,244,806

Short-term loans

52,110,355

8,523,678

43,529,004

Current portion of long-term loans

10,273,481

1,680,431

7,392,433

Current portion of long-term bonds

6,485,172

1,060,778

5,020,760

Current portion of other non-current liabilities

401,578

65,686

329,560

Total current liabilities

123,893,775

20,265,273

104,846,121

Total liabilities

213,763,926

34,965,311

190,389,062

Total equity and liabilities

305,630,652

49,991,928

275,171,768

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=Rmb 6.1136 announced by the People's Bank of China on June 30, 2015. 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, 2015, or at any other certain rate.

HUANENG POWER INTERNATIONAL, INC. CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2015 (Amounts expressed in thousands, except per share data)

For the six months ended 30 June

2015

2014

RMB

US$

RMB

Operating revenue

65,305,472

10,681,999

64,605,521

Tax and levies on operations

(610,521)

(99,862)

(488,913)

Operating expenses

     Fuel

(31,316,199)

(5,122,383)

(34,570,038)

     Maintenance

(1,567,361)

(256,373)

(1,534,273)

     Depreciation

(7,091,105)

(1,159,890)

(5,792,669)

     Labor

(3,166,354)

(517,920)

(2,581,273)

     Service fees on transmission and         transformer facilities of HIPDC

(70,386)

(11,513)

(70,386)

     Purchase of electricity

(1,688,708)

(276,222)

(2,572,420)

     Others

(2,282,126)

(373,286)

(2,577,630)

     Total operating expenses

(47,182,239)

(7,717,587)

(49,698,689)

Profit from operations

17,512,712

2,864,550

14,417,919

Interest income

83,678

13,687

80,816

Financial expenses, net

     Interest expense

(4,087,769)

(668,635)

(3,726,906)

     Exchange gain/ (loss) and bank        charges, net

157,672

25,790

(51,126)

     Total financial expenses, net

(3,930,097)

(642,845)

(3,778,032)

Share of profits less losses of associates and joint ventures

736,184

120,417

728,274

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

(40,574)

(6,637)

4,119

Other investment income

157,184

25,711

57,573

Profit before income tax expense

14,519,087

2,374,883

11,510,669

Income tax expense

(3,547,356)

(580,240)

(3,089,354)

Net profit

10,971,731

1,794,643

8,421,315

Other comprehensive income, net of tax

Items that may be reclassified subsequently to profit or loss:

Fair value changes of available-for-sale

   financial asset

784,270

128,283

(19,317)

Share of other comprehensive income   of investees accounted for under the   equity method

59,019

9,654

7,730

Effective portion of cash flow hedges

505,229

82,640

(76,754)

Translation differences of the financial   statements of foreign operations

(208,127)

(34,043)

491,391

Other comprehensive income, net of tax

1,140,391

186,534

403,050

Total comprehensive income

12,112,122

1,981,177

8,824,365

Net profit attributable to:

- Equity holders of the Company

8,950,784

1,464,077

6,808,372

- Non-controlling interests

2,020,947

330,566

1,612,943

10,971,731

1,794,643

8,421,315

Total comprehensive income attributable to: - Equity holders of the Company

10,091,343

1,650,638

7,211,063

- Non-controlling interests

2,020,779

330,539

1,613,302

12,112,122

1,981,177

8,824,365

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

- Basic and diluted

0.62

0.10

0.48

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=Rmb6.1136 announced by the People's Bank of China on June 30, 2015. 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, 2015, or at any other certain rate.

 

SOURCE Huaneng Power International, Inc.