Analysis of retrospective adjustment on Huaneng's performance

Tue. October 27, 2009; Posted: 05:16 AM

BEIJING, Oct 27, 2009 (Xinhua via COMTEX) -- HNP | Quote | Chart | News | PowerRating -- Huaneng Power International, Inc. (600011.SH; 0902.HK; HNP.NYSE) disclosed in its Q3 report that it had reached long-term coal purchasing contracts with coal suppliers at the end of September at contractual prices lower than expected.

Based on the contracts, the company made retrospective adjustments to its operating results for the first three quarters, which enormously cut its fuel cost and shored up its performance.

After adjustments, the average contractual coal price for Huaneng for the first three quarters of 2009 stood at 497.73 yuan per ton, up slightly from the 487 yuan per ton in the same period last year.

The total trades between Huaneng and tens of coal enterprises in Shanxi, Inner Mongolia, Henan, Anhui and Gansu provinces amounted to 50 million tons during the January to September period, taking 57.5 percent of Huaneng's total power coal consumption. And the rest power coal consumption included 30 percent bought from the market and 12.5 percent imported.

Huaneng disclosed that its fuel cost declined by 13.9 percent on year in Q1-Q3, but predicted higher fuel cost in the fourth quarter of 2009, or the heating season, and thus the unit fuel cost for the whole year of 2009 would drop by 10 percent from that of 2008.

Huaneng International said in its report for the third quarter of 2009 that its net profit reached 2.167 billion yuan in Q3, up 261 percent on year, and total net profit amounted to 4.13 billion yuan in Q1-Q3, which is far beyond earlier expectation.

For full details on Huaneng Power Intl Inc (HNP) click here. Huaneng Power Intl Inc (HNP) has Short Term PowerRatings of 4. Details on Huaneng Power Intl Inc (HNP) Short Term PowerRatings is available at This Link.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.