Huaneng Power International, Inc. Announces Operating Results For 2011

BEIJING, March 20, 2012 /PRNewswire-Asia/ -- Huaneng Power International, Inc. ("HPI", the "Company") (NYSE: HNP, FHKEx: 902, FSSE: 600011) today announced its audited annual operating results for the twelve months ended December 31, 2011 prepared under the International Financial Reporting Standards, in which the Company recorded consolidated operating revenue of RMB 133.421 billion (equivalent to approximately USD 21.175 billion, based on the exchange rate of USD 1 to RMB 6.3009 as of December 31, 2011), representing an increase of 27.90% over 2010, and net profit attributable to equity holders of the Company of RMB 1.181 billion (equivalent to approximately USD 0.187 billion), representing a decrease of 64.74% over 2010. Earnings per share amounted to RMB 0.08 (equivalent to approximately USD 0.01), and earnings per ADS amounted to RMB 3.20 (equivalent to approximately USD 0.51). The Board is satisfied with the Company's operating results in 2011.

The Board of the Company proposed to declare a cash dividend of RMB 0.05 (inclusive of tax) for each ordinary share of the Company held by shareholders.

In 2011, the Company attained new progress on many aspects including power generation, energy saving and environmental protection, project development and oversea operation. In respect of domestic operations, despite the unfavorable conditions from sustained increases in fuel prices and Renminbi lending rates, the management and employees of the Company seized opportunities, worked diligently to tackle the adversities, and fulfilled the duties of providing sufficient, reliable and green energy to the society. In respect of overseas operation, the operating results of Tuas Power in Singapore in 2011 improved significantly, thus making important contributions to the overall profit of the Company.

In 2011, total power generated by the Company's operating power plants in China amounted to 313.554 billion kWh, representing an increase of 22.03% compared to the same period last year. The electricity sold amounted to 295.717 billion kWh, representing an increase of 22.30% compared to the same period last year. The annual average utilization hours of the Company's domestic thermal generating units reached 5,552 hours, representing an increase of 133 hours compared to the same period last year and 258 hours higher than the average utilization hours of the thermal generating units in China.

In 2011, the Company purchased a total of 145 million tons of natural coal. The Company continued to enhance the communication and coordination with major contracted suppliers, leverage on it to actively explore new sources and supply channels for coal, and has effectively secured our coal supply. In addition, by capitalizing on the internal resources within China Huaneng Group, the Company has increased its imports of coal, which has helped to control the coal purchasing cost effectively. The unit fuel cost of power sold of the Company's domestic power plants was RMB 270.37 per MWh, representing an increase of 9.24% compared to last year.

In 2011, the Company led the industry in terms of technical and economic indicators and energy consumption indicator. The average equivalent availability ratio of the Company's domestic power plants was 94.23%, and its weighted average house consumption rate was 5.03%. The Company's average coal consumption rate for the power generated by coal-fired generating units was 296.40 grams/kWh, 1.14 grams/kWh lower than that of the same period last year. The Company's average coal consumption rate for power sold was 312.10 grams/kWh, representing a decrease of 3.49 grams/kWh from 2010.

In 2011, the controlled generation capacity of the newly commissioned coal-fired, combined cycle, wind turbine and hydro-power generating units of the Company was 3,120 MW,  923 MW, 698.5 MW and 20 MW, respectively. The above has increased the total controlled generating capacity and equity-based generation capacity of the Company by 4,761.5 MW and 3,149.4 MW, respectively. The installed generating capacity of the Company also changed as a result of the change of installed generating capacity of some power generation companies invested by the Company and the Company's technological improvement to existing generating units and close-down of small generating units. As of March, 20 2012, the Company's controlled and equity-based generation capacity was 60,375 MW, and 55,350 MW, respectively.

In 2011, Tuas Power Ltd. ("Tuas Power"), a wholly owned company of the Company in Singapore, seized opportunities and continued to maintain safe and stable operation of the generating units, and improved its operating results significantly. Its market share in the power generating market of Singapore for 2011 was 27.12%, representing an increase of 1.91 percentage point compared to the corresponding period last year. Singapore businesses realized a net profit attributable to the Company of RMB 1.282 billion for the whole year, representing an increase of 85.45% as compared to the corresponding period last year.

In 2011, the Company further secured its market position and was widely recognized by the market. Given its outstanding performance, the Company was awarded the "Most Popular Listed Company among Investors in Hong Kong and China" of the 2011 Golden Bauhinia Awards in China securities market; the Company was again named in the "Top 500 Chinese Listed Companies" by Fortune magazine, and ranked 29th on the list. In addition, the Company ranked 57th on the "Top 100 Chinese Listed Companies" in 2010. Besides, the Company was listed on the "Platts Top 250 Global Energy Listed Companies" for three years consecutively, with an overall ranking of 127th and ranked 4th in the category of global independent power producers and energy traders.

In 2012, the Company will strive to make the annual domestic generating units utilization hours reach 5,600 hours, thus enabling the Company's domestic power plants to achieve an annual power generation of 340 billion kWh. Meanwhile, the Company is to impose more stringent control of fuel costs, and make endeavors to explore new coal resources and supply channels. The major direction for the Company is to maintain the position of its core business, adjust power structure, enhance efficiency and risk control; to strengthen capital management, enhance financial analysis ability, and improve risk controls and cost controls. At the same time, the Company will gradually accelerate the transformation of its development mode for future developments, and further consolidate and optimize its geographical coverage. The Company will fine tune the development plan for thermal power generation, and aggressively invest in development and construction of power projects in gas, wind and hydro power, aiming to enhance the quality and efficiency of the development.

Encl: The 2011 consolidated financial information of the Company and its subsidiaries prepared under IFRS.

Consolidated Statement of Comprehensive Income:
http://www.prnasia.com/sa/attachment/2012/03/20120320231729178478.pdf

Consolidated Balance Sheet:
http://www.prnasia.com/sa/attachment/2012/03/20120320231729312059.pdf

About the Company

The Company is one of China's largest listed power producers with controlled generation capacity of 60,375 MW and equity-based generation capacity of 55,350 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.

SOURCE Huaneng Power International, Inc.