Huaneng Group's profit of RMB 6.1 billion last year is the main reason for its 20% reduction in thermal power losses

Cao Peixi, general manager of China Huaneng Group, said at the annual work meeting on the 11th that the largest power company in China realized a profit of 6.1 billion yuan in 2011, a decrease of 1.69 billion yuan over the previous year, and thermal power loss was the main reason; in 2012, production and operation will be improved. Centering on quality and efficiency, it will do a good job of turning power generators into loss-increasing profits, generating 660 billion kwh of electricity and a profit of 9 billion yuan.

The report shows that in 2011 Huaneng Group's operating income was 270.3 billion yuan, an increase of 18.5% year-on-year; profit was 6.1 billion yuan, a year-on-year decrease of 21.7%. Cao Peixi said that the overall profit was achieved through the profitability of other non-electric industries in the case of a thermal power loss of 6.5 billion yuan. Among them, the hydropower, wind power, coal, finance, and transportation industries realized profits of 3.22 billion yuan, 1.54 billion yuan, 1.33 billion yuan, 1.543 billion yuan, and 420 million yuan respectively.

He explained that in recent years, influenced by various factors such as the coal and electricity system and the electricity price policy, as well as the company's industrial structure, power supply structure, regional layout, and shareholding structure, the company has suffered serious losses in coal power, a significant increase in operating costs, and continued decline in profits. The debt ratio remains high.

Despite the operating difficulties of the main power generation business, Huaneng Power Group generated 604.6 billion kWh of electricity, an increase of 12.5% ​​year-on-year, and a growth rate higher than the national rate of 0.86 percentage points. It effectively responded to the more serious power shortages that occurred in some areas in 2011. . Energy-saving and emission-reduction also achieved results. Coal-fired power consumption fell by 4.04 g/kWh from the previous year to 318.68 g/kWh, far below the national average of 330 g/kWh.

As of the end of 2011, the total installed capacity of Huaneng Power Group reached 125.38 million kilowatts, a year-on-year increase of 10.5%, accounting for approximately 11% of the country's total installed power generation capacity, ranking first in Asia and the second largest power generation company in the world. Among them, the installed capacity of low-carbon clean energy such as hydropower was close to 24 million kilowatts, accounting for 19%, which was a 1.4% increase year-on-year.

In this year, Huaneng Group strengthened the coordination of upstream and downstream industries, and the ratio of coal production, production capacity, and internal coal supply was further increased. According to the report, the group produced 66.06 million tons of coal annually, an increase of 38.5%; coal production capacity reached 68.17 million tons per year, an increase of 6.3%; imported coal was 27.69 million tons, an increase of 940,000 tons; internal coal supply was 33.82 million tons, and coal Self-supply rate reached 12.1%, an increase of 1.2%.

Cao Peixi's analysis shows that due to factors such as slower economic growth, adjustment of industrial structure, and increase in energy conservation and emission reduction in 2012, the growth rate of electricity consumption in China's society may decline, and local areas may fall more. At the same time, due to the decline in investment capacity of power generation companies and the decrease in new installed capacity in recent years, it is expected that this trend will continue this year. In addition, due to factors such as coal supply and water supply, some regions in China will still face a tight supply of electricity during certain periods of time. . In addition, the contradiction between supply and demand due to coal transportation capacity constraints will remain prominent, and coal prices may continue to operate at high levels.

He believes that these changes will affect the company's production and operations, "the slow growth of electricity consumption will make the market more competitive; local power supply is tight, although it provides opportunities for increasing power generation, but also put forward higher requirements for safe and stable production; The high coal price operation will bring new pressure to protect coal supply and reduce fuel costs."

He said that this year, Huaneng Power Group will do a good job in the power industry, increase its core competitiveness, and at the same time increase the profitability of industries such as coal, finance, and science and technology, and realize the goal of a loss-free enterprise as soon as possible. The annual operating performance goal is to complete 660 billion kwh of electricity generation, coal production of 66.7 million tons, operating income of 340 billion yuan, and profit of 9 billion yuan.