Huaneng Power International (902) Q4 2024 earnings summary

Executive summary

• Operating revenue for 2024 was RMB245.55 billion, down 3.48% year-over-year, mainly due to lower domestic and overseas electricity tariffs.

• Net profit attributable to equity holders rose 21.86% to RMB10.19 billion, driven by reduced fuel costs and renewable energy expansion.

• Earnings per share reached RMB0.46; a cash dividend of RMB0.27 per share is proposed.

• Total electricity sold by domestic plants increased 1.13% to 452.94 billion kWh, with strong growth in wind and solar output.

Financial highlights

• Operating costs fell 6.26% to RMB219.54 billion, mainly due to a 9.23% drop in fuel costs.

• Profit before tax increased 42.83% to RMB17.82 billion.

• Net cash from operating activities rose 11.06% to RMB50.53 billion; cash and equivalents at year-end were RMB18.60 billion.

• Total assets grew 8.22% to RMB595.58 billion; equity attributable to shareholders increased to RMB143.79 billion.

• Maintenance and labor costs rose 13.45% and 5.00% respectively; depreciation increased 3.18%.

Outlook and guidance

• Targeting domestic power generation of ~485 billion kWh in 2025, with focus on green and low-carbon transformation and renewable energy expansion.

• Plans to control fuel costs, optimize procurement, and maintain stable electricity prices amid market reforms.

• Capital expenditure for 2025 will remain high, mainly for renewable energy and infrastructure projects.