The unit of China Huaneng Group Corp. generated profit of 1.02 billion yuan in 2011, a 94 percent gain from a year earlier, Huaneng said yesterday in a statement to the Hong Kong stock exchange. That is less than the 1.2 billion yuan mean estimate of six analysts compiled by Bloomberg.
China’s wind-power development is slowing due to a tighter government approval process for projects on concern about power grids’ ability to handle capacity. The nation increased wind- installed capacity by 18 percent last year from a year earlier, compared with a 67 percent rise in 2010, according to Bloomberg New Energy Finance.
“In 2011, 32 projects with a capacity of 1,653.0 MW were newly approved by relevant authorities,” the company said. Huaneng increased its installed wind-power capacity by 40 percent to 4.9 gigawatts from the previous year, missing a target of about 5.1 gigawatts the company set in May.
Karl Liu, an analyst from ICBC International Research Ltd., wrote in a Mar. 5 report that he expected “comparably weak” 2011 earnings from wind-power operators. He expected Huaneng to report the highest earnings growth compared with China Datang Corp. Renewable Power Co. (1798) and China Longyuan Power Group Corp. (916), the nation’s biggest wind-farm developer.
Datang yesterday posted a 60 percent gain in profit of 729.8 million yuan last year.
Huaneng Renewables’ stock fell 1.44 percent to HK$2.06 yesterday, before the announcement.
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