Huaneng Power International, Inc. Announces 2013 Interim Results
Huaneng Power International, Inc. Announces 2013 Interim Results The Profit Attributable to Equity Holders of the Company was RMB5.623billion, Representing an Increase of 164.98% Compared to the Same Period Last Year PR Newswire BEIJING, July 30, 2013 BEIJING, July 30, 2013 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI", the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its unaudited operating results for the six months ended June 30, 2013. For the six months ended June 30, 2013, the Company and its subsidiaries recorded consolidated operating revenue of RMB 64.062 billion (equivalent to approximately USD 10.368 billion), representing a decrease of 4.64% compared to the same period last year. The profit attributable to equity holders of the Company was RMB 5.623 billion (equivalent to approximately USD 0.91 billion), representing an increase of 164.98% compared to the same period last year. The earnings per share were RMB 0.40 and earnings per ADS were RMB 16.00 (equivalent to approximately USD 2.59). The increase of the Company's net profit was mainly attributable to the fall of the fuel cost from the same period last year and effective controls of other costs and expenses. For the first half of 2013, in spite of the national economic restructuring and decrease of total electricity consumption growth nationwide compared to the same period of last year, the Company took advantage of the continuing decline of coal market prices by encouraging power generation and coal price controls by its power plants, exercised strict control in expenditure and strengthened internal fuel management. For the first half of 2013, the Company accomplished each of its business plans and substantially improved its overall profitability. Power Generation. For the first half of this year, the operating power plants of the Company within China achieved total power generation of 149.483 billion kWh on consolidated basis and aggregate electricity sales volume of 141.268 billion kWh, representing a decrease of 0.46% and 0.26%, respectively, from the same period of last year; the operating units of those power plants registered 2,398 utilization hours, representing a decrease of 130 hours compared to the same period of previous year. The aggregate power generation of Singapore Tuas Power Ltd. accounted for a market share of 20.9% in Singapore, representing a decrease of 5.8 percentage points from the same period of last year, which was mainly due to the intensified competition as a result of operation of many new generating units in the Singaporean market. Cost Control. The coal oversupply experienced in 2012 continued during the first half of 2013 as a result of soft national and world economy, leading to steady fall of coal price. The Company promoted direct purchase from large mines to power plants by seizing the opportunity in the coal market and ample capacity of railway transportation. The Company also made various efforts to lower average coal purchase price, including increasing the purchase of cost-effective imported coal; optimizing purchase, transportation and contractual structures; strengthening the management of purchase plans and internal controls; and rationalizing inventory arrangement based on production needs. Energy Conservation and Environmental Protection. The Company attaches great importance to energy conservation and environmental protection, and has equipped all of its coal-fired generating units with desulphurization devices. For the first half of this year, a total of 62 coal-fired generating units representing approximately 60% of the Company's power generation capacity were equipped with denitrification devices. The Company also strengthened its management over the operation and maintenance of environmental protection facilities so as to improve their operating efficiency and in-operation rate. In order to meet the requirements of the newly issued Standards for the Emission of Air Pollutants for Thermal Power Plants (GB13223-2011), the Company will further its environmental protection efforts during the Twelfth Five-Year Plan period by modifying certain desulphurization devices to improve operating efficiency, installing denitrification devices on all coal-fired generating units, and using advanced dust control technologies to enhance dust removal efficiency. Project Development and Construction. For the first half of 2013, the Company obtained approval for the "replacing small units with large ones" Project (2×660 MW) of Zhejiang Changxing Power Plant and the Hunan Subaoding Wind Farm Project (150 MW). The generating units of the Company that commenced operation during the first half of this year included Unit 6 (1,000 MW) of Henan Huaneng Qinbei Power Plant, Unit 3 (1,036 MW) and Unit 4 (1,036 MW) of Guangdong Huaneng Haimen Power Plant, two units (2x191 MW) of Jiangsu Huaneng Jinling Gas Turbine Power Plant, and the Tembusu Multi-Utilities Complex Project Phase I (101MW) of Tuas Power. As of 30 June 2013, the Company had controlled generating capacity of 66,341 MW and equity-based generating capacity of 59,155 MW. For the second half of this year, the Company will continue to accelerate transformation of its development mode, further consolidate and optimize its geographical coverage, redouble efforts for structural adjustment, strengthen its investment and presence in clean energy, and effectively promote synergy in the sector so as to accomplish the targets for this year. The major tasks of the Company for the second half of 2013 include: strengthening safe production management by ensuring safe, stable and economical operation of its generating units; reinforcing marketing efforts in the electricity market and maintaining its leading position in terms of utilization hours; striving to reduce financial costs by strengthening costs controls and optimizing debt structure; and continuously improving construction projects management and ensuring sustainable, stable and sound development focusing on profitability. About the Company The Company is one of China's largest listed power producers with controlled generation capacity of 66,341 MW and equity-based generation capacity of 59,155 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 Email: firstname.lastname@example.org Wonderful Sky Financial Group Limited Ms. Olive Zhang/ Ms. Erica Tao / Mr. Henry Li/Ms. Irene Gao Tel: (852) 2851 1038 Fax: (852) 2865 1638 Email: email@example.com / firstname.lastname@example.org / email@example.com / firstname.lastname@example.org HUANENG POWER INTERNATIONAL, INC. CONDENSED CONSOLIDATED INTERIM BALANCE SHEET (UNAUDITED) AS AT June 30, 2013 (Amounts expressed in thousands) As at As at June 30, 2013 December 31, 2012 RMB US$ RMB ASSETS Non-current assets Property, plant and 176,422,192 28,553,287 177,013,627 equipment Investments in associates /jointly controlled 16,218,984 2,624,983 14,596,771 entities Available-for-sale financial 3,265,700 528,542 3,052,822 assets Land use rights 4,354,293 704,726 4,297,183 Power generation licence 3,887,294 629,144 4,084,506 Mining rights 1,922,655 311,175 1,922,655 Deferred income tax assets 454,829 73,612 532,387 Derivative financial assets 9,777 1,582 13,723 Goodwill 13,870,400 2,244,874 14,417,543 Other non-current assets 2,892,826 468,193 3,082,894 Total non-current assets 223,298,950 36,140,118 223,014,111 Current assets Inventories 6,544,903 1,059,269 7,022,384 Other receivables and assets 3,229,417 522,669 2,990,395 Accounts receivable 13,689,339 2,215,569 15,299,964 Trading securities - - 93,753 Derivative financial assets 49,453 8,004 55,268 Bank balances and cash 15,702,540 2,541,399 10,624,497 Total current assets 39,215,652 6,346,910 36,086,261 Total assets 262,514,602 42,487,028 259,100,372 EQUITY AND LIABILITIES Capital and reserves attributable to equity holders of the Company Share capital 14,055,383 2,274,812 14,055,383 Capital surplus 17,363,907 2,810,285 17,719,077 Surplus reserves 7,085,454 1,146,755 7,085,454 Currency translation (664,307) (107,516) (35,937) differences Retained earnings - Proposed dividend - - 2,951,631 - Others 19,976,709 3,233,158 14,354,526 57,817,146 9,357,494 56,130,134 Non-controlling interests 11,094,431 1,795,593 9,830,208 Total equity 68,911,577 11,153,087 65,960,342 Non-current liabilities Long-term loans 68,413,203 11,072,427 72,564,824 Long-term bonds 25,408,624 4,112,293 22,884,688 Deferred income tax 1,966,932 318,341 2,011,729 liabilities Derivative financial 435,860 70,542 837,005 liabilities Other non-current 1,201,236 194,415 1,247,464 liabilities Total non-current 97,425,855 15,768,018 99,545,710 liabilities Current liabilities Accounts payable and other 22,548,564 3,649,402 19,992,901 liabilities Taxes payable 1,542,048 249,575 1,275,430 Dividends payable 3,518,004 569,376 70,839 Salary and welfare payables 203,869 32,995 217,967 Derivative financial 71,140 11,514 88,641 liabilities Short-term bonds 25,360,079 4,104,436 35,449,763 Short-term loans 29,656,560 4,799,806 27,442,076 Current portion of long-term 9,288,230 1,503,266 9,056,703 loans Current portion of long-term 3,988,676 645,553 - bonds Total current liabilities 96,177,170 15,565,923 93,594,320 Total liabilities 193,603,025 31,333,941 193,140,030 Total equity and liabilities 262,514,602 42,487,028 259,100,372 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$1.00=Rmb6.1787 announced by the People's Bank of China on June 28, 2013. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at June 30, 2013, or at any other certain rate. HUANENG POWER INTERNATIONAL, INC. CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2013 (Amounts expressed in thousands, except per share data) For the six months ended June 30, 2013 2012 RMB US$ RMB Operating revenue 64,062,329 10,368,254 67,180,473 Tax and levies on (521,253) (84,363) (318,556) operations Operating expenses Fuel (35,677,117) (5,774,211) (43,271,787) Maintenance (1,433,270) (231,970) (1,309,178) Depreciation (5,605,718) (907,265) (5,612,839) Labor (2,409,750) (390,009) (2,192,451) Service fees on transmission and transformer facilities of (70,386) (11,392) (70,386) HIPDC Purchase of electricity (2,664,797) (431,288) (3,823,905) Others (3,364,720) (544,567) (3,070,444) Total operating expenses (51,225,758) (8,290,702) (59,350,990) Profit from operations 12,315,318 1,993,189 7,510,927 Interest income 83,862 13,573 77,042 Financial expenses, net Interest expense (3,948,892) (639,114) (4,564,904) Exchange gain/(loss) and 85,959 13,912 (51,308) bank charges, net Total financial (3,862,933) (625,202) (4,616,212) expenses, net Share of profits of associates/jointly 319,493 51,709 290,666 controlled entities Loss/(gain) on fair value changes of financial 7,427 1,202 (1,036) assets/liabilities Other investment income 185,576 30,035 185,333 Profit before income tax 9,048,743 1,464,506 3,446,720 expense Income tax expense (2,288,062) (370,315) (994,643) Net profit 6,760,681 1,094,191 2,452,077 Other comprehensive income/(loss), net of tax Items that may be reclassified subsequently to profit or loss: Fair value changes of available-for-sale 9,659 1,563 35,809 financial asset Share of other comprehensive (loss)/income of investees (38,022) (6,154) 13,357 accounted for under the equity method Effective portion of cash 308,856 49,987 (463,510) flow hedges Translation differences of the financial statements (629,007) (101,801) 236,457 of foreign operations Other comprehensive loss, (348,514) (56,405) (177,887) net of tax Total comprehensive 6,412,167 1,037,786 2,274,190 income Net profit attributable to: - Equity holders of the 5,622,740 910,020 2,121,963 Company - Non-controlling 1,137,941 184,171 330,114 interests 6,760,681 1,094,191 2,452,077 Total comprehensive income attributable to: - Equity holders of the 5,274,863 853,717 1,943,512 Company - Non-controlling 1,137,304 184,068 330,678 interests 6,412,167 1,037,785 2,274,190 Earnings per share attributable to the equity holders of the Company(expressed in RMB per share) - Basic and diluted 0.40 0.06 0.15 Dividends paid - - - 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=Rmb6.1787 announced by the People's Bank of China on June 28, 2013. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at June 30, 2013, or at any other certain rate. SOURCE Huaneng Power International, Inc.