Huaneng Power International, Inc.: RMB 3.442 Billion Net Profit Attributable to Equity Holders for the First Half Year of 2019, Increased by 98.78% Compared to the Same Period Last Year

BEIJING, July 30, 2019 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI", or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its unaudited operating results prepared under IFRS for the six months ended June 30, 2019.

For the first half year of 2019, the Company and its subsidiaries recorded consolidated operating revenue of RMB 83.603 billion (equivalent to approximately USD 12.161 billion, based on the exchange rate of USD 1 to RMB 6.8747 as of June 30, 2019), representing an increase of 1.45% compared to the same period of last year. The net profit attributable to equity holders of the Company was RMB 3.442 billion (equivalent to approximately USD 501 million), representing an increase of 98.78% compared to the same period of last year. The earnings per share was RMB 0.20 and earnings per ADS amounted to RMB 8.08 (equivalent to approximately USD 1.175). The main reason for the increase of the net profit is the decrease of fuel costs year-on-year.

In the first half of the year, faced with the macroeconomic environment in which the national economy underwent structural transformation and the growth rate of total electricity consumption witnessed a substantial decline, the Company continued to strengthen the level of safe and clean production, actively participated in the power industry reform, intensified efforts on investment and development of low-carbon clean energy, steadily promoted the efficiency and performance of enterprises, made progress in technological innovations, continuously enhanced the ability of fuel supply and price control, and successfully fulfilled the established goals and targets under an unfavourable business environment.

Power Generation. In the first half of the year, the Company's total power generation by the power plants within China on consolidated basis amounted to 195.375 billion kWh, representing a decrease of 6.15% over the same period last year. Total electricity sold by the Company amounted to 185.032 billion kWh, representing a decrease of 5.78% over the same period last year. The utilization hours reached 1,900 hours, representing a decrease of 151 hours over the same period last year.

Cost Control. In the first half of the year, both the coal and power industries intensified efforts to ensure full delivery of coal supplies under the long- and medium-term contracts, the railway enhanced the rail dispatch capacity, and the imported coal functioned as a supplementary supply, the supply of coal of the Company therefore achieved an overall stable performance. Concurrently, the reduced thermal power generation caused the demand for thermal coal to fall short of expectations, and the inventory of port and client-side remained at a fairly high level, giving rise to the downward movement of coal price. The unit fuel cost of our domestic power plants throughout the year occurred for sales of power was RMB223.81/MWh, representing a year-on-year decrease of 5.57%.

Energy Conservation and Environmental Protection. The Company maintained its leading positions in certain economic and technical indicators for power sector, such as coal consumption for power supply and house consumption rate. All of its coal-fired power plants have obtained the sewage discharge permit. Emission of all kinds of pollutants has met the national and local environmental requirements. As an advanced electric energy production enterprise, the Company actively implements energy-saving renovation projects, promotes new energy-saving technologies such as waste heat recovery, conducts various energy-saving and environmental protection activities, strengthens the operation and maintenance management of environmental protection facilities, and intensifies energy conservation and environmental protection supervision and assessment.

Project Development and Construction. In the first half of the year, the Company proceeded smoothly in the construction of power generation projects. The capacity of the commissioned units was 174.2 MW, including Jiangsu Dafeng Offshore Wind Farm with a capacity of 71.4 MW, Henan Mianchi Fenghuangshan Wind Farm with a capacity of 38 MW, Guangxi Guigang Qixingling Wind Farm with a capacity of 60 MW, Henan Zhenyao Wind Farm with a capacity of 2 MW, Zhejiang Jiapu Photovoltaic with a capacity of 1.03 MW and Zhejiang Xitang Photovoltaic with a capacity of 1.77 MW. In the meantime, some of the power plants invested or controlled by the Company underwent changes in capacity. As of 30 June 2019, the Company had a controlled generation capacity of 106,136 MW and an equity-based generation capacity of 93,520 MW. The proportion of the installed capacity of clean energy sources (gas turbine, hydro, wind, photovoltaic and biomass power generation) reached 16.05%.

Tuas Power Limited. In the first half of the year, the accumulated power generation of Tuas Power Limited in Singapore, which is wholly-owned by the Company, accounted for a market share of 20.5%, representing a decrease of 0.3 percentage point compared to the same period of last year. The sales revenue was RMB6.39 billion, representing an increase of 18.25% compared with the RMB5.403 billion of the same period of last year. The net loss of Singapore business attributable to equity holders of the Company was RMB 200 million. 

In the second half of the year, the Company will continue to strengthen production safety, focus on energy conservation and emission reduction, promote the development in low-carbon clean energy, enhance quality and efficiency, initiatively adapt to the power industry reform, proactively increase market share, strive to reduce fuel cost, optimize debt structure and constantly improve business performance so as to consistently provide long-term, sustainable and increasing returns for the shareholders of the Company.

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Encl: The consolidated financial information of the Company and its subsidiaries prepared under IFRS for the six months ended June 30, 2019. 

About Huaneng Power International, Inc.

Huaneng Power International, Inc. is one of China's largest listed power producers with controlled generation capacity of 106,136 MW and equity-based generation capacity of 93,520 MW. The power plants of the Company are located in 26 provinces, autonomous regions and municipalities in China. The Company also has a wholly-owned power company in Singapore.

SOURCE Huaneng Power International, Inc.