Huaneng Power International, Inc. Announces 2013 Interim Results

BEIJING, July 30, 2013 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI", the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its unaudited operating results for the six months ended June 30, 2013.

For the six months ended June 30, 2013, the Company and its subsidiaries recorded consolidated operating revenue of RMB 64.062 billion (equivalent to approximately USD 10.368 billion), representing a decrease of 4.64% compared to the same period last year.  The profit attributable to equity holders of the Company was RMB 5.623 billion (equivalent to approximately USD 0.91 billion), representing an increase of 164.98% compared to the same period last year. The earnings per share were RMB 0.40 and earnings per ADS were RMB 16.00 (equivalent to approximately USD 2.59). The increase of the Company's net profit was mainly attributable to the fall of the fuel cost from the same period last year and effective controls of other costs and expenses.

For the first half of 2013, in spite of the national economic restructuring and decrease of total electricity consumption growth nationwide compared to the same period of last year, the Company took advantage of the continuing decline of coal market prices by encouraging power generation and coal price controls by its power plants, exercised strict control in expenditure and strengthened internal fuel management. For the first half of 2013, the Company accomplished each of its business plans and substantially improved its overall profitability.

Power Generation.  For the first half of this year, the operating power plants of the Company within China achieved total power generation of 149.483 billion kWh on consolidated basis and aggregate electricity sales volume of 141.268 billion kWh, representing a decrease of 0.46% and 0.26%, respectively, from the same period of last year; the operating units of those power plants registered 2,398 utilization hours, representing a decrease of 130 hours compared to the same period of previous year.  The aggregate power generation of Singapore Tuas Power Ltd. accounted for a market share of 20.9% in Singapore, representing a decrease of 5.8 percentage points from the same period of last year, which was mainly due to the intensified competition as a result of operation of many new generating units in the Singaporean market.

Cost Control.  The coal oversupply experienced in 2012 continued during the first half of 2013 as a result of soft national and world economy, leading to steady fall of coal price.  The Company promoted direct purchase from large mines to power plants by seizing the opportunity in the coal market and ample capacity of railway transportation.   The Company also made various efforts to lower average coal purchase price, including increasing the purchase of cost-effective imported coal; optimizing purchase, transportation and contractual structures; strengthening the management of purchase plans and internal controls; and rationalizing inventory arrangement based on production needs.

Energy Conservation and Environmental Protection.The Company attaches great importance to energy conservation and environmental protection, and has equipped all of its coal-fired generating units with desulphurization devices.  For the first half of this year, a total of 62 coal-fired generating units representing approximately 60% of the Company's power generation capacity were equipped with denitrification devices.  The Company also strengthened its management over the operation and maintenance of environmental protection facilities so as to improve their operating efficiency and in-operation rate.

In order to meet the requirements of the newly issued Standards for the Emissionof Air Pollutants for Thermal Power Plants (GB13223-2011), the Company will further its environmental protection efforts during the Twelfth Five-Year Plan period by modifying certain desulphurization devices to improve operating efficiency, installing denitrification devices on all coal-fired generating units, and using advanced dust control technologies to enhance dust removal efficiency.

Project Development and Construction. For the first half of 2013, the Company obtained approval for the "replacing small units with large ones" Project (2×660 MW) of Zhejiang Changxing Power Plant and the Hunan Subaoding Wind Farm Project (150 MW).

The generating units of the Company that commenced operation during the first half of this year included Unit 6 (1,000 MW) of Henan Huaneng Qinbei Power Plant, Unit 3 (1,036 MW) and Unit 4 (1,036 MW) of Guangdong Huaneng Haimen Power Plant, two units (2x191 MW) of Jiangsu Huaneng Jinling Gas Turbine Power Plant, and the Tembusu Multi-Utilities Complex Project Phase I (101MW) of Tuas Power.

As of 30 June 2013, the Company had controlled generating capacity of 66,341 MW and equity-based generating capacity of 59,155 MW.

For the second half of this year, the Company will continue to accelerate transformation of its development mode, further consolidate and optimize its geographical coverage, redouble efforts for structural adjustment, strengthen its investment and presence in clean energy, and effectively promote synergy in the sector so as to accomplish the targets for this year.

The major tasks of the Company for the second half of 2013 include: strengthening safe production management by ensuring safe, stable and economical operation of its generating units; reinforcing marketing efforts in the electricity market and maintaining its leading position in terms of utilization hours; striving to reduce financial costs by strengthening costs controls and optimizing debt structure; and continuously improving construction projects management and ensuring sustainable, stable and sound development focusing on profitability.

About the Company
The Company is one of China's largest listed power producers with controlled generation capacity of 66,341 MW and equity-based generation capacity of 59,155 MW. The power plants of the Company are located in 19 provinces, municipalities and autonomous regions in China. The Company also has a wholly-owned power company in Singapore.

For enquiries, please contact:

Huaneng Power International, Inc.                  
Ms. MENG Jing / Ms. ZHAO Lin                               
Tel: (8610) 6608 6765 / 6322 6596             
Fax: (8610) 6641 2321                       
Email: zqb@hpi.com.cn

Wonderful Sky Financial Group Limited
Ms. Olive Zhang/ Ms. Erica Tao / Mr. Henry Li/Ms. Irene Gao
Tel: (852) 2851 1038
Fax: (852) 2865 1638
Email: olivezhang@wsfg.hk / ericatao@wsfg.hk /  henryli@wsfg.hk / irenegao@wsfg.hk

SOURCE Huaneng Power International, Inc.