Huaneng Power International, Inc. Announces Operating Results for 2012

    Huaneng Power International, Inc. Announces Operating Results for 2012

Net profit attributable to equity holders of the Company of RMB5.512 billion
representing an increase of 366.95% over 2011

PR Newswire

BEIJING, March 19, 2013

BEIJING, March 19, 2013 /PRNewswire/ -- Huaneng Power International, Inc.
("HPI" or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced
its audited annual operating results for the twelve months ended December 31,
2012 prepared under the International Financial Reporting Standards, in which
the Company recorded consolidated operating revenue of RMB133.967 billion
(equivalent to approximately USD21.314 billion, based on the exchange rate of
USD1 to RMB6.2855 as of December 31, 2012), representing an increase of 0.41%
over 2011, and net profit attributable to equity holders of the Company of
RMB5.512billion (equivalent to approximately USD0.877 billion), representing
an increase of 366.95% over 2011. Earnings per share amounted to RMB0.39
(equivalent to approximately USD0.06), and earnings per ADS amounted to
RMB15.60 (equivalent to approximately USD2.48). The Board is satisfied with
the Company's operating results in 2012.

The Board of the Company proposed to declare a cash dividend of RMB0.21
(inclusive of tax) for each ordinary share of the Company held by

In 2012, the Company has made new progress on many aspects including power
generation, energy saving and environmental protection and project
development. The Company exploited the favorable timing of a fall in coal
price, overcame difficulties posed by sluggish demand for electricity and
intensified market competition, improved management in a positive manner,
thereby recorded remarkable growth in operating results, and the indicators
for energy saving and environmental protection remained in a leading position
among peers, while fulfilled the duties of providing sufficient, reliable and
green energy to the society. The operation of Tuas Power Ltd. ("Tuas Power")
in Singapore was stable and the profit ability and sustainability of the
Company were further enhanced.

In 2012, the Company overcame difficulties posed by sluggish demand for
electricity and intensified market competition, and explored the market
through various channels, thus expanding our market shares. Through optimizing
the examination and maintenance work of our generating units, the Company has
increased its power generation, achieved outstanding performance with
utilization hours of its coal-fired generating units ranking the first in many
provinces. However, because of the sluggish national demand for electricity
and the significant growth in hydropower generation which reduced the market
share of coal-fired power, total power generated by the Company's operating
power plants in China amounted to 302.433 billion kWh, representing a decrease
of 3.55% year-on-year. The electricity sold aggregated to 285.455 billion kWh,
representing a decrease of 3.47% year-on-year. In 2012, the annual average
utilization hours of the Company's domestic coal-fired generating units
reached 5,114 hours, which were 149 hours higher than the average utilization
hours of the coal-fired generating units in China.

In 2012, the Company purchased a total of 133 million tons of natural coal.
The Company continued to cultivate cooperation with major contracted
suppliers, leverage on it to actively explore new sources and supply channels
for coal, increase its purchase of imported coal, took advantage of the
favourable opportunity afforded by the significant decreases in market prices
of coal to optimize the purchase structure and means and made effective
control of fuel costs. The fuel costs per unit of power sold of the Company's
domestic power plants were RMB249.82 per MWh, representing a decrease of 7.60%
compared to last year.

In 2012, 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 94.05%, and its
weighted average plant consumption rate was 4.90%. The Company's average coal
consumption rate for the power generated by coal-fired generating units was
295.49 grams/kWh, representing 0.91 grams/kWh lower than that of the same
period last year. The Company's average coal consumption rate for power sold
was 310.71 grams/kWh, representing a decrease of 1.39 grams/kWh from the same
period last year. The Company kept increasing its efforts in operating,
managing, updating and modifying our environmental friendly equipment, fully
attained the reduction goals with regard to total emission of sulphur dioxide
and nitrogen oxides.

In 2012, the controlled generating capacity of the newly commissioned
coal-fired, wind turbine and hydropower generating units of the Company was
4,663 MW, 93.5 MW and 97.5 MW, respectively. In addition, the 1x1,000 MW
coal-fired generating unit at Henan Huaneng Qinbei Power Plant Phase III
Project (in which the Company owns 60% equity interest) and Singapore Tuas
Power Tembusu Multi-Utility Complex Project Phase I (101MW) (which is
wholly-owned by the Company) have recently commenced operation. Apart from
these, 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, the Company's technological improvement to
existing generating units and the close-down of generating units. As of March
19, 2013, the Company's controlled and equity-based generating capacity was
63,857 MW and 57,273 MW, respectively.

In 2012, Tuas Power, a wholly-owned subsidiary of the Company in Singapore
maintained safe and stable operation of the generation units throughout the
year. Singapore Tuas Power Tembusu Multi-Utility Complex Project and Tuas
Power combined cycle generating unit No. 5 are under construction smoothly.
With market share (on accumulative basis) in the power generation market for
the whole year at 25.2%, Tuas Power realized a net profit attributable to the
shareholders of the Company of RMB1.041 billion, which represented a decrease
of 18.77% compared to the corresponding period last year. It was mainly
attributable to the fact that relatively more new generating units were put
into operation in Singapore's electricity market in 2012, leading to more
intense competition in the market.

In 2012, the Company delivered brilliant performance on the capital market.
The Company's A Share was successfully incorporated in the CSI 300 Index, SSE
180 Index and CSI 100 Index, while the Company's H Share was awarded the "Top
Ten Gainer Stocks" among the 2012 "Top 100 Hong Kong Stocks"; the Company was
on the list of "Platts Top 250 Global Energy Listed Companies Award" four
years in a row and ranked 143rd, at the same time ranked 6^th in the category
of global independent power producers and energy traders; the Company also
made encouraging progress in its corporate culture development and was named
the "National Demonstration Base for Corporate Culture".

In 2013, The Company will strive to attain an annual utilization hour of 5,070
hours with its domestic generating units, and realize an annual power
generation of 320 billion kWh at the Company's domestic power plants. The
Company will adhere to its objective of safe production with "zero accident",
increase efforts in marketing, proactively deal with every opportunity and
challenge arising from market-oriented reform for fuel, highlight impact of
technology innovation on the promotion of energy saving and emission
reduction, reinforce operation and fund management by means of complete budget
and comprehensive planning, further control controllable costs, intensify fund
management and further cut down funding costs.

To ensure the annual power generation target is reached, the Company will
further define duties of the regional marketing personnel, further explore
potential of the management, take advantage of the price unification of
domestic thermal coal, take an active role to encourage tariff increase in
regions with lower tariff and recorded persistent loss, further improve work
collaboration, strive to increase efficiency power generation during the
period with favorable market condition, abundant demand and high margins,
continue to optimize the operation of our generating units, endeavor to raise
utilization rate and capacity rate of high efficiency and large generating
units, boost generation amount by high efficiency generating units. The
Company will build up its strength to cope with competition in the fuel market
by all means, take advantages of the market-oriented reform for coal, the
adjustment of coal supply structure, the synergies developed in the industry
chain interconnecting power, coal, port and shipping, improve its procurement
of coal and establish linkage and support for coal resources and
transportation, manage its costs and retain its gains, adhere to
market-oriented operation, carry out procurement based on competitive price
comparison, grasp every market opportunity and boost up returns. The Company
will also focus on establishing superior energy saving and environmental
friendly coal-fired power plants, emphasize to secure and upgrade the energy
efficiency of its 1,000 MW and 600 MW ultra-supercritical water-cooled
generating units, 600 MW supercritical water-cooled and air-cooled generating
units, put forth reform regarding energy saving and emission reduction of the
generating units in operation, carry out denitrification, desulphurization and
capacity upgrade and electrostatic precipitation for generating units
step-by-step, in order to ensure the goals set out in the environmental
responsibility statement are being accomplished.

Encl: The 2012 consolidated financial information of the Company and its
subsidiaries prepared under IFRS.

About the Company

The Company is one of China's largest listed power producers. Currently, the
Company controlled generation capacity of 63,857 MW and equity-based
generation capacity of 57,273 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.

For enquiries, please contact:

Huaneng Power International, Inc.
Ms. MENG Jing / Ms. ZHAO Lin
Tel: (8610) 6608 6765 / 6322 6596
Fax: (8610) 6641 2321

Wonderful Sky Financial Group Limited
Mr. Linda Wong / Ms. Yolanda Wang / Ms. Irene Gao / Ms. Shine Li
Tel: (852) 2851 1038
Fax: (852) 2865 1638
Email: /

(Amounts expressed in thousands)
                                         As of                    As of
                                         December 31, 2012        December31,2011
                                         RMB          US$         RMB
Non-current assets
 Property, plant and equipment        177,013,627  28,162,219  177,968,001
 Investments in associates/jointly
 controlled entities              14,596,771   2,322,293   13,588,012
 Available-for-sale financial assets  3,052,822    485,693     2,301,167
 Land use rights                      4,297,183    683,666     4,341,574
 Power generation licence             4,084,506    649,830     3,904,056
 Mining rights                        1,922,655    305,887     1,922,655
 Deferred income tax assets           532,387      84,701      526,399
 Derivative financial assets          13,723       2,183       16,389
 Goodwill                             14,417,543   2,293,778   13,890,179
 Other non-current assets             3,082,894    490,477     2,540,104
 Total non-current assets         223,014,111  35,480,727  220,998,536
Current assets
 Inventories                          7,022,384    1,117,235   7,525,621
 Other receivables and assets         2,990,395    475,761     4,600,250
 Accounts receivable                  15,299,964   2,434,168   15,377,843
 Trading securities                   93,753       14,916      96,154
 Loans to subsidiaries                -            -           -
 Derivative financial assets          55,268       8,793       147,455
 Bank balances and cash               10,624,497   1,690,319   8,670,015
 Total current assets             36,086,261   5,741,192   36,417,338
 Total assets                     259,100,372  41,221,919  257,415,874
equity holders of the Company
 Share capital                        14,055,383   2,236,160   14,055,383
 Capital surplus                      17,719,077   2,819,040   17,816,495
 Surplus reserves                     7,085,454    1,127,270   7,013,849
 Currency translation differences     (35,937)     (5,717)     (570,973)
 Retained earnings
 - Proposed dividend              2,951,631    469,594     702,769
 - Others                         14,354,526   2,283,752   11,865,406
                                         56,130,134   8,930,099   50,882,929
Non-controlling interests                9,830,208    1,563,950   8,674,824
 Total equity                     65,960,342   10,494,049  59,557,753
Non-current liabilities
 Long-term loans                      72,564,824   11,544,797  79,844,872
 Long-term bonds                      22,884,688   3,640,870   17,854,919
 Deferred income tax liabilities      2,011,729    320,059     1,993,155
 Derivative financial liabilities     837,005      133,164     578,198
 Other non-current liabilities        1,247,464    198,467     989,357
 Total non-current liabilities    99,545,710   15,837,357  101,260,501
Current liabilities
 Accounts payable and other
 liabilities                      19,992,901   3,180,798   25,767,999
 Taxes payables                       1,275,430    202,916     1,018,541
 Dividends payable                    70,839       11,270      167,643
 Salary and welfare payables          217,967      34,678      230,283
 Derivative financial liabilities     88,641       14,102      35,549
 Short-term bonds                     35,449,763   5,639,927   10,262,042
 Short-term loans                     27,442,076   4,365,934   43,979,200
 Current portion of long-term loans   9,056,703    1,440,888   14,140,270
 Current portion of long-term bonds   -            -           996,093
 Total current liabilities        93,594,320   14,890,513  96,597,620
 Total liabilities                193,140,030  30,727,870  197,858,121
 Total equity and liabilities     259,100,372  41,221,919  257,415,874
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=RMB6.2855
announced by the People's Bank of China on December 31, 2012. No representation is
made that Renminbi amounts could have been, or could be, converted into United
States dollars at that rate as of December 31, 2012, or at any other certain rate.




(Amounts expressed in thousands, except per share data)
                                                                                For the year ended December 31,
                                                                                2012                         2011
                                                                                RMB            US$           RMB
Operatingrevenue    133,966,659    21,313,604    133,420,769
 Tax and levies on operations                                                (672,040)      (106,919)     (484,019)
Operating expenses
 Fuel                                                                        (82,355,449)   (13,102,450)  (90,546,192)
 Maintenance                                                                 (2,846,521)    (452,871)     (2,528,850)
 Depreciation                                                                (11,032,748)   (1,755,270)   (11,866,705)
 Labor                                                                       (5,112,484)    (813,377)     (4,621,667)
 Service fees on transmission and transformer
 facilities of HIPDC                                                     (140,771)      (22,396)      (140,771)
 Purchase of electricity                                                     (7,101,878)    (1,129,883)   (8,613,264)
 Others                                                                      (7,747,828)    (1,232,651)   (5,871,699)
 Total operating expenses                                                (116,337,679)  (18,508,898)  (124,189,148)
Profit from operations                                                          16,956,940     2,697,787     8,747,602
Interest income                                                                 175,402        27,906        166,183
Financial expenses, net
 Interest expense                                                            (8,897,097)    (1,415,496)   (7,736,186)
 Exchange (loss)/gain and bank                                               (166,778)      (26,534)      76,474
 charges, net
 Total financial expenses, net                                           (9,063,875)    (1,442,030)   (7,659,712)
Share of profits of associates/jointly
 controlled entities                                                         622,358        99,015        703,561
Loss on fair value changes of
 financial assets/liabilities                                                (1,171)        (186)         (727)
Other investment income                                                         187,131        29,772        93,460
Profit before income tax expense                                                8,876,785      1,412,264     2,050,367
Income tax expense                                                              (2,510,370)    (399,391)     (868,927)
Net profit                                                                      6,366,415      1,012,873     1,181,440
Other comprehensive income/ (loss), net of tax
Fair value changes of available-for-sale
 financial asset                                                             98,516         15,674        (233,738)
Share of other comprehensive
 income/(loss) of investees accounted
 under the equity method of accounting                                       30,070         4,784         (44,928)
Effective portion of cash flow hedges                                           (325,375)      (51,766)      (409,377)
Translation differences of the financial
 statements of foreign operations                                            536,231        85,312        (665,745)
Other comprehensive income/ (loss),
 net of tax                                                                  339,442        54,004        (1,353,788)
Total comprehensive income/ (loss)                                              6,705,857      1,066,877     (172,348)
 - Equity holders of the Company                                             5,512,454      877,011       1,180,512
 - Non-controlling interests                                                 853,961        135,862       928
                                                                                6,366,415      1,012,873     1,181,440
Total comprehensive income/ (loss) attributableto:
 - Equity holders of the Company                                             5,850,701      930,825       (171,909)
 - Non-controlling interests                                                 855,156        136,052       (439)
                                                                                6,705,857      1,066,877     (172,348)
Earnings per share attributable to the
 equity holders of the Company
 (expressed in RMB per share)
 - Basic and diluted                                                         0.39           0.06          0.08
Dividends paid                                                                  702,867        111,824       2,807,084
Proposed dividend                                                               2,951,631      469,594       702,769
Proposed dividend per share
 (expressed in RMB per share)                                                0.21           0.03          0.05
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=RMB6.2855 announced by the People's Bank of China on December 31, 2012. No representation is
made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as of December
31, 2012, or at any other certain rate.

SOURCE Huaneng Power International, Inc.
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