Huaneng Power International (902) Q2 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 was RMB118.81 billion, down 5.73% year-over-year, while net profit attributable to equity holders rose 19.80% to RMB7.78 billion and EPS reached RMB0.40.

• Domestic on-grid power generation was 210.68 billion kWh, down 0.22%, with a notable shift toward green and low-carbon energy sources.

• Wind and solar generation increased due to capacity growth, narrowing the overall generation decline.

• Overseas, Singapore's pre-tax profit declined by RMB1.17 billion to RMB1.72 billion due to regulatory changes, while Pakistan's pre-tax profit rose to RMB429 million, up RMB117 million.

• The company maintained a strong focus on cost control, green energy expansion, and operational efficiency.

Financial highlights

• Operating revenue: RMB118.81 billion, down 5.73% year-over-year; net profit attributable to equity holders: RMB7.78 billion, up 19.80%; EPS: RMB0.40.

• Operating expenses dropped 8.69% to RMB103.41 billion, with fuel costs down 12.11% to RMB68.11 billion.

• Net cash from operating activities: RMB23.60 billion, up 71.53% year-over-year.

• Total assets: RMB561.27 billion as of June 30, 2024, with an asset-liability ratio of 67.18%.

• Multiples of interest earned improved to 3.43 from 2.66 year-over-year.

Outlook and guidance

• The company aims to intensify new energy development, optimize asset structure, and deepen operational reform in H2 2024.

• Plans to optimize coal procurement, expand green finance, and maintain stable tariffs unless coal prices drop significantly.

• Renewable development targets remain unchanged; will monitor policy changes and maintain investment hurdle rates.

• Anticipates continued pressure on electricity prices and increased competition as new energy accelerates market entry.

• Will leverage green finance, expand financing channels, and optimize debt maturity to control costs and support green transformation.