China: Huadian Power’s 2009 net profit rises to CNY1.1-1.3bn

Sources have reported that Huadian Power International Corp, China’s largest independent power producer, has said that its net profit for 2009 may be in the CNY1.1-1.3bn range (US$161-190m) as a result of a drop in thermal coal prices and a rise in electricity tariffs. According to Chinese Accounting Standards, the company made a net loss of CNY2.56bn (US$375m) in 2008.

Huadian recently obtained approval from the NDRC to build a coal-fired power plant in Laizhou, Shandong province. The project represents an investment of CNY7.1bn (US$1.04bn) and will feature two 1000MW generators of Chinese origin.

The country’s five largest power producers generated a combined CNY19.6bn (US$2.87bn) in gross profit in 2009, a welcome change from the large losses recorded in 2008 (China Knowledge).