Huaneng Power International (902) Q1 2025 earnings summary

Executive summary

• Q1 operating revenue was CNY 60.335bn, down 7.7% YoY; net profit attributable to equity holders was CNY 4.973bn, up 8.19%, and EPS was CNY 0.27.

• Lower fuel costs supported earnings despite reduced domestic generation and lower average electricity tariffs.

• Coal-fired utilization and on-grid sales declined, while wind and solar capacity and generation expanded.

Financial highlights

• Domestic on-grid sales totaled 106.633bn kWh, down 5.66% YoY; average settlement tariff was CNY 488.19/MWh, down 1.96%.

• Unit fuel cost was CNY 272.68/MWh, down 8.21% YoY; coal-sector unit fuel cost was CNY 259.29/MWh, down 9.9%.

• Net profit after deducting non-recurring items was CNY 4.80bn, up 9.61%; non-recurring profit items totaled CNY 174m, mainly from grants and subsidies.

• Net cash flows from operating activities rose 43.26% to CNY 17.40bn.

• Operating costs fell 10.97% and financial expenses fell 15.12% YoY, mainly reflecting lower coal costs and interest rates.

Outlook and guidance

• Renewable capacity additions target 7GW in H1 and 10GW for FY25, including ~5.8GW of solar; 2,435MW was added in Q1.

• Q2 coal prices are expected to remain low, with overall procurement prices potentially slightly below Q1; spot coal was 48% of purchases in Q1.

• Renewable tariffs may decline over the next three quarters as market penetration and market-based sales rise, but management expects no sharp move from Q1 levels.

• Priorities include profitable generation, clean-energy development, fuel-cost control, safer operations, efficiency gains and use of green financing policies.