Huaneng Renewables Corp., China’s second-biggest wind-farm developer, said full-year profit rose 59 percent as its wind power output climbed.
Net income increased to 887.6 million yuan ($143 million) in 2013 from 557.9 million yuan the previous year, the Beijing-based company said yesterday in a filing. The mean estimate of 17 analysts compiled by Bloomberg was for profit of 1.11 billion yuan. Sales gained 44 percent to 5.8 billion yuan.
“The company witnessed further improvements in profitability, competitiveness and sustainability, with business results hitting a record high amid the all-around progress,” Huaneng Renewables said in the statement.
Huaneng Renewables is benefiting from a slowdown in construction that eased grid congestion, allowing projects to operate closer to capacity. China may install 14.7 gigawatts of wind power this year, compared with 14 gigawatts estimated for 2013, according to Bloomberg New Energy Finance.
Wind-power generation at the company rose 33 percent last year to 11,142 gigawatt-hours. Solar generation was 1.2 GWh.
Huaneng Renewables fell 8 percent to close at HK$3.07 in Hong Kong trading yesterday before it announced earnings. The stock has dropped 17 percent this year, compared with a 7.4 decline in the city’s benchmark Hang Seng Index.
The company said it will pay a final dividend of 0.02 yuan a share.