March 19 (Bloomberg) -- Huaneng Renewables Corp., a clean-energy unit of China’s biggest electricity producer, said profit declined 46 percent last year as grid bottlenecks limited the amount of electricity that could be produced from its wind farms.
Net income fell to 558 million yuan ($89.7 million) in 2012 from 1.02 billion yuan a year earlier, the unit of China Huaneng Group Corp. said today in a filing to the Hong Kong stock exchange. Profit was projected at 591 million yuan, according to the mean of five analyst estimates compiled by Bloomberg. Revenue increased 26 percent to 4.03 billion yuan.
Growth in wind power in China has been limited by the electricity grid’s ability to handle the influx of energy, forcing the government to tighten approvals on new projects and slow the development of the industry. Installations of wind turbines in China fell 18 percent to 15.9 gigawatts last year from 2011, according to Bloomberg New Energy Finance data.
Huaneng Renewables was downgraded to hold from buy after a 67 percent rally in the shares in the past three months and because of a possible share placement, analysts led by Kai-Ting Wong at Deutsche Bank AG said in a March 18 note.
The stock fell 1 percent to HK$1.98 in Hong Kong trading today, before the results were announced.
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