PVTIME – On March 22, Huaneng Power International, Inc. (hereinafter referred to as Huaneng or the Company)(NYSE: HNP; HKEx: 902; SSE: 600011), released its audited operating results of the Company for the year ended 31 December 2021 prepared in accordance with International Financial Reporting Standards.
In 2021, facing up to the impacts and test of epidemic and the market environment of significant price increase in the coal market, the Company made all-out efforts to coordinate the work of epidemic prevention and control, production and operation, and transformation and development, thus the safety production and supply of electric power and thermal power maintained stable, the pace of transformation and upgrading accelerated, and innovation made a new progress. We completed the major objectives of the year and continued to fulfill the responsibility of providing sufficient, reliable and eco-friendly energy to the community.
1. Operating Results
For the twelve months ended 31 December 2021, the Company realized operating revenue of RMB204,605 million, representing an increase of 20.75% as compared with the same period last year. Net loss attributable to equity holders of the Company amounted to RMB10,636 million, representing a decrease of 547.27% as compared with the same period last year. Losses per share amounted to RMB0.81.
As at the end of 2021, net assets per share of the Company amounted to RMB4.12, representing a decrease of 20.62% as compared with the same period last year.
The Audit Committee of the Company convened a meeting on 21 March 2022 and reviewed the 2021 annual results of the Company.
2. Power Generation
In 2021, with the principal of maximization of the overall interests, the Company strengthened the market analysis, adhered to the coordination of the volume and price, made best efforts on the market trading, strived to increase effective power generation, took advantage of the opportunities from the policy of expanding the floating range of electricity price to optimize the marketing strategy in a timely manner and both of volume and price raised in electricity and heat supply fields. Total power generated by the Company’s domestic operating power plants on consolidated statements basis amounted to 457.336 billion KWh, representing a year-on-year increase of 13.20%. The electricity sold amounted to 430.165 billion KWh, representing a year-on-year increase of 13.23%. The annual average utilization hours of the Company’s domestic power plants reached 4,058 hours, representing a year-on-year increase of 314 hours. The utilization hours of coal-fired power generating units was 4,488 hours, representing a year-on-year increase of 429 hours. The utilization hours of most of the Company’s coal-fired power plants were leading in its corresponding area respectively. Total heat supplied by the Company amounted to 297 million GJ, representing a year-on-year increase of 12.64%.
3. Cost Control
In 2021, the Company procured an aggregate of 203 million tons of coal. In the context of the tense situation of coal supply and demand market, the Company paid close attention to the real time market trend, took full advantage in the policy support, proactively seized the market opportunity, optimized procurement strategy and regional supply structure, strengthened the cooperation with major coal mines, identified high-quality low-cost resources on an advanced basis, so as to control the procurement cost of fuel coal. However, affected by the significant increase in the coal price, the fuel cost for sales of power of the Company was RMB316.36/MWh throughout the year, representing a year-on-year increase of 51.32%.
4. Energy Saving and Environmental Protection
The Company maintained the leading position among major domestic power enterprises in terms of safety production, technical and economic and energy consumption indicators throughout the year. In 2021, the average equivalent availability ratio of the domestic thermal generating units of the Company was 93.26%, coal consumption of power supply of 290.69g/kWh and the house consumption rate of plants was 4.34%. With respect to air pollution emissions, the power generation companies affiliated to the Company have carried out ultra-low-emissions transformation as planned with marked results. All of them have met or outperformed the national emission standards. With respect to treatment of wastewater discharge and coal yards and ash yards, the Company has allocated funds to carry out environmental technological transformation projects such as wastewater treatment, coal yard closure, and ash yard transformation in power plants in key regions. All power plants have accelerated environmental protection transformation projects to ensure that pollutant emissions meet the requirements under pollution discharge permits and other ecological and environmental protection policies.
5. Project Development
During the year, the controlled generation capacity of the newly commissioned thermal generating units, wind generating units, solar power units and biomass units was 2,000 MW, 2,403.45 MW, 799 MW and 30 MW, respectively. As of 31 December 2021, the Company’s controlled and equity-based generation capacity was 118,695 MW and 103,875 MW, respectively.
6. Overseas Business
Tuas Power Ltd., a wholly-owned subsidiary of the Company in Singapore, maintained safe and stable operation of the generation units throughout the year. The total market share of Tuas Power in the power generation market for the whole year was 19.2%. The Business in Singapore in 2021 recorded a pre-tax profit of RMB163 million, representing an increase of RMB32 million as compared with the same period of last year.
Sahiwal coal-fired power plant is the first large-scale coal-fired power plant put into operation in the China-Pakistan Economic Corridor. It greatly eased the power shortage in Pakistan. The Business in Pakistan recorded a pre-tax profit of RMB776 million for 2021, representing an increase of RMB38 million as compared with the same period of last year.
PROSPECTS FOR 2022
In 2022, the Company will continue to promote the implementation of the development strategy, actively respond to changes in the electricity, coal and capital markets, and strive to complete the annual production and operation tasks.
In terms of electric power construction, adhering to the green development concept, the Company will spend much effort to develop clean energy, optimize thermal power structure and speed up transformation and upgrading to achieve high-quality development by centering efficiency by means of modern management, under the support of science and technology innovation and on the basis of safe development.
In terms of electric power generation, the Company earnestly implements the regulations and policies in the field of safety production, and constantly optimizes management to prevent safety accidents. The Company conducts appraisal for the generator sets to comprehensively improve the lean level of facility management. While operating and maintaining the clean energy power generation system, the Company attaches importance to the basic and adjusting roles of existing thermal power generating unit in the energy safety system of the society, actively conducts life extension appraisal and transformation, and maintains the health level of standby set for emergency. The Company always focuses on the economy and flexibility of the power generation assembly and meet the new market demands through technical transformation; actively develops the heat supply industry to upgrade integrated energy services; deeply studies the application prospect of biomass coupled power generation and grasps the market opportunities; and earnestly governs the environment protection well as demanded by the ecological civilization construction of various regions.
In terms of electric power marketing, the Company will take the principle of maximizing the overall benefit, strengthen market analysis, insist on quantity and price coordination, make every effort to conduct market transactions, and strive to generate more and more efficient power. The Company will actively respond to the market reform of electricity, promote the construction of institutional mechanism and strengthen the training of market trading talents. The Company will fully develop the electricity sales market, improve the operation level of the energy sales company, and further promote the optimization of carbon market transactions, striving to achieve an annual domestic power generation of 465 billion kWh approximately.
In terms of fuel, the Company will closely track the changes in policies and domestic and international coal markets, and strive to promote the signing of medium and long-term coal contracts to ensure strict compliance. The Company will continue to optimize the supply structure and achieve the best procurement cost by taking into account factors such as resource origin, transportation mode and coal type matching. The Company will strengthen inventory management, play the role of light storage and high consumption, buy low and use high, and strive to reduce procurement costs.
In terms of capital, the Company will keep an eye on changes in the international and domestic capital markets and give full play to its credit and management advantages, seize opportunities brought by the green finance policy, ensure the smooth main credit financing channel, increase the issuance in the interbank market, actively explore innovative financing tools in the capital market, broaden financing channels, and strive to reduce capital costs while ensuring capital security.
The Company will further enhance the awareness of opportunities and risks, seize the development opportunities, effectively deal with challenges, maintain strategic determination, make concerted efforts to overcome difficulties, coordinate safety and security, quality and efficiency improvement, transformation and upgrading, reform and innovation, and accelerate the pace of creating an international first-class listed power generation company by.
For more details: ANNOUNCEMENT OF ANNUAL RESULTS FOR 2021
(NYSE: HNP; HKEx: 902; SSE: 600011), released its audited operating results of the Company…){kind=link}