Coal prices hold down power profit

HONG KONG: Huaneng Power International, the mainland's largest electricity producer, posted a disappointing 1.48 percent rise in profit in 2007 as price curbs prevented the company from passing the rise in coal costs to consumers.

Earnings rose 2 percent to 0.51 yuan per share. The company will pay a dividend of 0.30 yuan a share, up from 0.28.

Despite the strong demand for electricity that has driven the bottom line of power companies, challenges remain as coal prices have risen to a record high and competition gets tougher.