China's Huaneng Power swings to net loss in Q3; sees FY loss

Tue. October 21, 2008; Posted: 07:22 PM

BEIJING, Oct 22, 2008 (XFN-ASIA via COMTEX) -- HNP | Quote | Chart | News | PowerRating -- Huaneng Power International Inc (SHA 600011; HK 0902; NYSE HNP) said it booked a net loss of 2.16 bln yuan in the third quarter, against a profit of 1.56 bln a year earlier, due to surging coal prices, which offset higher electricity output.

The company generated 140.375 bln kilowatt hours (kWh) of electricity in the first nine months of 2008, up 12.73 pct year-on-year.

In its third quarter report filed with the Shanghai Stock Exchange, the company said operating revenue for the third quarter rose 47.36 pct year-on-year to 19.33 bln yuan, while operating costs surged 91.7 pct to 22.12 bln, amid higher coal prices.

The company did not give the details about its coal costs.

Huaneng Power, China's largest electricity producer, also booked a loss per share of 0.18 yuan in the third quarter, against earnings per share of 0.13 yuan a year earlier.

During the first nine months, operating revenue rose 36.75 pct year-on-year to 50.12 bln yuan, while the net loss was 2.63 bln, against a profit of 4.52 bln a year earlier.

The loss per share in the nine months was 0.22 yuan, against EPS of 0.38 yuan a year earlier.

Looking ahead, the company said that it expects to book a net loss for 2008 due to high coal prices.

"Although power tariffs have been adjusted upwards two times during the period, the increment still cannot offset the rise in fuel costs," Huaneng said.

"In case prices of fuel coal remain at high levels in the fourth quarter and no new tariff adjustment is introduced, the principal business will suffer a loss."

The company booked a net profit of 5.997 bln yuan in 2007, with earnings per share at 0.50 yuan.

In a separate statement, the company said that its board has approved the issue of up to 10 bln yuan in medium-term notes. It gave no further details.

A-shares of Huaneng Power closed down 3.02 pct at 6.75 yuan yesterday.

(1 usd = 6.85 yuan)

zachary.wei@xfn.com

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For full details on Huaneng Power Intl Inc (HNP) click here. Huaneng Power Intl Inc (HNP) has Short Term PowerRatings of 6. Details on Huaneng Power Intl Inc (HNP) Short Term PowerRatings is available at This Link.

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