Huaneng Renewables Profit Surges 162% as Power Generation Rises
Net income rose to 646.1 million yuan ($105.5 million) from 246.2 million yuan a year earlier, the unit of China Huaneng Group Corp. said today in a filing to the Hong Kong stock exchange. Sales gained 58.5 percent to 2.87 billion yuan.
“With the power curtailment situation improved in certain regions, the Company achieved a substantial increase in power generation and utilization hours,” Huaneng Renewables said in the statement.
The company has benefited from China’s decision to slow development of new wind farms to ease grid congestion and allow projects to operate closer to their installed capacity. China may add 13 gigawatts of wind power this year, 6 percent less than a year earlier, Bloomberg New Energy Finance estimates.
In March, the National Energy Administration withheld new wind-park permits from projects in the Jilin, Inner Mongolia and Heilongjiang provinces, where grids are overloaded.
China Longyuan Power Group Corp. (916), the nation’s biggest wind-farm developer, yesterday said first-half profit totaled about 1.46 billion yuan, 0.3 percent up from a year earlier. Wind-power generation at the company rose 32 percent to 11.1 billion kilowatt-hours.
Huaneng Renewables fell 4.4 percent to close at HK$2.62 in Hong Kong trading today before the results were announced.
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