Huaneng Power International (902) Q3 2024 earnings summary

Executive summary

• 9M 2024 revenue was CNY 184.396bn, down 3.62% YoY; attributable net profit was CNY 10.413bn, down 17.12%, and EPS was CNY 0.53.

• Adjusted net profit rose 6.87% YoY, supported by lower unit fuel costs and higher domestic electricity consumption.

• Domestic on-grid sales increased, while the average settlement tariff declined; renewable capacity continued to expand.

Financial highlights

• 9M revenue was CNY 184.396bn, down 3.62% YoY, mainly due to lower domestic tariffs.

• 9M attributable net profit was CNY 10.413bn, down 17.12%; basic and diluted EPS was CNY 0.53, down 19.70%.

• Q3 revenue was CNY 65.59bn, up 0.46% YoY; attributable net profit was CNY 2.96bn, down 52.69%.

• 9M domestic on-grid electricity sales reached 341.24bn kWh, up 1.14%; average settlement tariff was CNY 496.27/MWh, down 2.63%.

• 9M unit fuel cost was CNY 303.47/MWh, down 8.74%; operating cash flow was CNY 42.99bn, up 27.73%.

Outlook and guidance

• Q4 coal prices were expected to fluctuate within a range, averaging slightly above Q3 with limited upside; 2025 prices were expected to decline modestly as supply-demand conditions improve.

• FY 2024 renewable additions target remained 10GW, subject to project returns and investment quality.

• 2025 electricity contract prices faced downward pressure from lower coal prices and greater renewable market participation; signing targets were volume at least equal to regional capacity share and prices at least equal to the market average.

• Q4 priorities included optimizing coal supply and power trading, controlling fuel and financing costs, advancing clean energy, and pursuing annual operating and development targets.

• 2025 carbon trading costs were expected to be somewhat better than in 2024; no Q4 impairment estimate was set, with assessments dependent on policies and unit conditions.