Huaneng Power International, Inc. Announces Operating Results for 2010

BEIJING, March 29, 2011 /PRNewswire-Asia/ -- Huaneng Power International, Inc. ("HPI" or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) is pleased to announce the audited annual operating results for the twelve months ended 31 December 2010 prepared under the International Financial Reporting Standards, in which the Company recorded consolidated operating revenue of RMB104.318 billion (equivalent to approximately USD15.752 billion, based on the USD-RMB exchange rate of USD1 to RMB6.6227 as at 31 December 2010), representing an increase of 35.72% over 2009, and net profit attributable to equity holders of the Company of RMB3.348 billion (equivalent to approximately USD506 million), representing a decrease of 32.08% over 2009. Earnings per share amounted to RMB0.28 (equivalent to approximately USD0.04), and earnings per ADS amounted to RMB11.20 (equivalent to approximately USD1.69). The Board is satisfied with the Company's operating results in 2010.

The Board proposed to declare a cash dividend of RMB0.20 per share (inclusive of tax) to the shareholders for the year of 2010.

In 2010, confronted with complicated operation environment, the management and all staff of the Company gathered strength and effectively overcome difficulties, made advances and diligently implemented the duties of providing sufficient, reliable and clean energy to the society. The Company had made progress on aspects of project development, emission reductions, energy saving, capital operation and corporate governance, etc. As regards overseas business, the operating results of Tuas Power steadily advanced, thus making important contributions to the profit growth of the Company.

In 2010, the total domestic generation of the operating power plants of the Company in China amounted to 257 billion kWh, an increase of 26.25% over the same period last year. The accumulated on-grid electricity sold amounted to 241.8 billion kWh. The annual average utilization hours of the Company's coal-fired generating units reached 5,564 hours, representing 533 hours above the average rate of the coal-fired generating units in China. The accumulated power generation of Tuas Power Ltd. in Singapore accounted for a market share of 24.7%, representing an increase of 0.4 percentage point compared to the same period of the previous year.

In 2010, the condition of fuel supply was relatively complicated. Through reinforcement in communication and coordination with major contracted suppliers, the Company had effectively stabilized the major channel in the coal supply. At the same time, through expansion in the force for imported coal, active utilization of the internal available resources of Huaneng Group, the Company had been able to fully utilized the economies of scale and management advantages, thereby effectively controlled the costs in fuel purchases. The unit fuel cost per unit of power sold of the Company's domestic power plants increase of 14.72% from the previous year.

As a power company primarily based in coal-fired, the Company has all along placed utmost duties in power saving and emission reductions. In 2010, the Company had successfully achieved the target of power saving and emission reductions set in eleventh five-year plan. All current coal-fired generating units have been installed with desulfurization flue gas facilities. Some of the units have been installed with denitrification facilites. In 2010, The average coal consumption rate for power sold was 315.59 grams/kWh, 22.6 grams/kWh lower than the average level nationwide, 21.47grams/kWh lower than that of 2005 during the beginning of eleventh five-year plan. The technical and economic indicators of the Company are maintained at a leading level in the PRC.

In 2010, the newly acquired generating units by the Company that commenced operation included two coal-fired generating units (600 MW) at Gansu Pingliang Power Plant, and one coal-fired generating unit (600 MW) at Fujian Fuzhou Power Plant, which in aggregated increased the controlling generating capacity by 1,800 MW. In January 2011, one coal-fired generating unit (600 MW) at Hunan Yueyang Power Plant, Phase I Project of Hebei Kangbao Wind-Power Plant (with a total generation capacity of 49.5MW) and the first stage of the Phase II Project of Jiangsu Qidong Wind-Power Plant (with a total generation capacity of 50 MW) of the Company had respectively completed trial run. In addition, the acquisition of the related assets of ShanDong Electric Power Corporation and ShanDong Luneng Development Group Company Limited has recently become effective, the installed generating capacity of some investee power generation companies has changed, the Company has carried out technological improvement to existing generating units and closed down small generating units which further change the installed generating capacity. As at 29 March 2011, the Company's total controlling generation capacity was 54,402 MW, while the total equity-based generation capacity was 50,935 MW.

The preliminary work of planned projects of the Company also progressed smoothly.

Capital operation of the Company realized new breakthroughs and the development momentum was further enhanced. Successful completion of the new issue of 1.5 billion A shares and 500 million H shares and completed the single largest equity refinancing by domestic listed power companies. Through the new issue, the Company improved its asset structure, increased its capital strength and laid the foundation for expanding the development space. Through the new issue, Huaneng Group confirmed the Company as the only platform for the ultimate integration of the conventional energy business of Huaneng Group and further clarified the position and development objectives of the Company in the capital markets. With the completion in the acquisition of 50% equity interest of Shanghai Time Shipping and 30% equity interest of Hainan Nuclear Power during the year, the Company entered into the shipping and nuclear power areas and following the completion of the acquisition of Liaoning Suzihe hydropower project (37.5MW), the Company firstly entered into the hydropower market of Liaoning Province which was instrumental in improving the Company's power structure in Liaoning Province.

In 2010, the board of directors won the "2010 Board of Directors Award" granted by the Shanghai Stock Exchange and the Sixth Asia Corporate Governance Award granted by Asia Corporate Governance. It ranked 27th on the PRC listed company list of Fortune 500 (Chinese edition) and became the only listed company in the PRC's Power industry sector entering the Top 30. It ranked 102nd in the 2010 Platts Energy Information Global Energy Enterprises (Listed Companies) 250 and ranked 7th in the category of global independent power producers and energy traders.

In 2011, the Company strives to achieve the annual power generation of the Company's domestic power plants to approximately 315 billion kWh and achieve the coal-fired generating unit utilization hours of the Company to 5,500 hours. The Company will expedite the construction and improvement of coal storage and transit shipment and the transportation supply protection system, actively expand fuel supply channels, strive to enhance coal protection ability, enhance the synergy of its sea transportation ability and resources, enhance fuel cost management and strive to reduce fuel costs, control production costs strictly, tap potentials and increase efficiency. The Company will continue to push forward energy saving and environment protection work, keep reducing energy consumption levels and keep major economic and technical indicators positive, enhance the management of projects in progress, continuously enhance the operation of new generating units, accelerate the change of development mode, consolidate and optimize geographical location and increase the ability of the Company in sustainable development. In accordance with the guidance of the government on energy policies, the Company will accelerate the construction of large-scale thermal power bases, accelerate the construction of co-generation projects, speed up the development of coal and power integration projects, actively push forward the development of natural gas and wind power projects, actively seek to invest, develop and construct hydropower, nuclear power and solar energy power generation projects, so as to make the Company stand out as a first-rate listed power company that boasts prominent edges in terms of cutting edge technology, excellent management, reasonable geographical location, optimized structure, industry synergy, remarkable economic efficiency, simultaneous development of coal-fired power generation and clean energy power generation, excellent corporate governance and market value.

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Encl: The 2010 consolidated financial information of the Company and its subsidiaries prepared under IFRS.

To view the entire release, including the Consolidated Balance Sheet (Audited) as of December 31, 2010 and Consolidated Statement of Comprehensive Income (Audited) for the Year Ended December 31, 2010, please follow this link: http://www.prnasia.com/sa/attachment/2011/03/20110330307995.pdf

About the Company

The Company is one of China's largest listed power producers with controlled generation capacity of 54,402 MW and equity-based generation capacity of 50,935MW. The power plants of the Company are located in 18 provinces, municipalities and autonomous regions in China. The Company also has a wholly-owned power company in Singapore.

SOURCE Huaneng Power International, Inc.