HomeNewsHuaneng Power posts $417m profit

Huaneng Power posts $417m profit

13 Mar 2002 – Huaneng Power International, Inc today announced its audited results for the year ended December 31, 2001 – a net profit of RMB3.451bn ($417m).

The profits represented a 37.16 per cent increase over 2000. Net
operating revenues for 2001 were RMB15.791bn, a 25.79 per cent increase over 2000. Basic earnings per share were RMB0.61. Basic earnings per American Depository Share (ADS) were RMB24.24 and the Board of Directors proposed to distribute a dividend of RMB0.30 per share to shareholders.

The Board of Directors expressed satisfaction with the operating results obtained last year. It said that the successful acquisition of Shandong Huaneng expanded the Company’s operational capacity, enhanced its competitiveness and made great contribution to the significantly increased operating results for the year 2001.

On the other hand, while facing some negative factors such as increasingly fierce competition in the power market and pressure from continuously rising coal prices, the Company has strived to expand operation scale and reinforce its marketing efforts, as well as strengthen internal management and cost control to improve efficiency.

In the year 2001, the Company completed its A share issuance and listing on the Shanghai Stock Exchange, and its total issued share capital has reached 6 billion shares. The issuance of A shares improved the Company’s capital structure, added a new funding channel in the domestic capital market for the Company, and created greater opportunities for the Company’s future development.

In 2001, the total amount of power generated at the Company’s power plants was 55.86bn kWh, which was 3.8 per cent higher than the annual planned power generation and a 26.5 per cent increase when compared to 2000. The average availability factor of the power plants of the Company was 92.18 per cent and the average capacity factor was 58.97 per cent; the weighted average coal consumption rates for power sold and for power generated were 333gram/kWh and 317gram/kWh, respectively, the weighted average house consumption rate was 4.97 per cent and the average unit fuel cost for output was

In its statement, Huaneng Power International said, “Technical and economic indices remained to be in the forefront among power companies in the PRC. In 2002, the Company will capture opportunities and meet challenges with full confidence and strength and will also strive to achieve the following objectives: to ensure the safety and operating stability of its power plants and the achievement of its annual generation plan; to ensure the first unit of Dezhou Phase III to be put into commercial operation; to strengthen fuel management as well as cost controls of other aspects; to enhance the Company’s analysis and forecasting work on the power market and the power pooling system so as to strengthen the Company’s power sales; and to push ahead the
preparation work for acquisition of power plant assets, seeking opportunities to expand the Company’s operation scale and strengthen its competitiveness.”