Huaneng sees profits drop 21.7% last year
Updated: 2012-01-12 09:25
BEIJING - China Huaneng Group, the country's largest power producer, said on Wednesday that it posted a profit of 6.1 billion yuan ($965.63 million) last year despite losses in the thermal power business.
Losses totaling 6.5 billion yuan in the group's thermal power plants were offset by other business gains, resulting in a 21.7-percent year-on-year profit decline on the balance sheet, Cao Peixi, president of Huaneng, said at the group's work conference.
The group's business revenue amounted to 270.3 billion yuan, up 18.5 percent from a year earlier.
Cao attributed losses in thermal power plants to the state's price control over electricity, while thermal coal prices are largely determined by the market.
Huaneng's installed power generating capacity rose 10.5 percent year-on-year to 125.38 million kilowatts in 2011, accounting for 11 percent of the country's total.
As part of its cost-cutting efforts, the group boosted its own coal production to 64.06 million metric tons last year, up 38.5 percent year-on-year, and imported 27.69 million metric tons of coal.
Cao expected power consumption to slow in 2012 amid an economic slowdown and a nationwide industrial restructuring.
However, Cao warned of possible power shortages in some regions this year due to declining investment in the power generating sector by electricity producers.
The group aims to raise its business revenue to 304 billion yuan with a profit of 9 billion yuan this year by producing 660 billion kilowatts of electricity and 66.7 million metric tons of coal this year, he added.
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