Power Company Reports Increase in Profits due to Lower Coal Prices
One of China’s largest listed electricity utility Huaneng Power International Inc. posted a 79 percent increase on its 2013 net profit due to its lower coal prices that help reduced fuel costs. The company’s net profit went up by 10 billion yuan last year, which is 89 percent higher than the 5.9 billion yuan profit it posted in 2012.
The company still expects a demand in power to continue its steady increase in the future due to a stable economic growth. Furthermore coal process is unlikely to fluctuate too much as there is ample supply. The company also faces challenges in thermal power operations that gives the government a chance to push ahead with policies that will help promote green and clean energy.
The company is also aiming to increase its output of its power plants by more than 2 percent compared with the national demand of 7 percent that was forecasted by China Electricity Council after reflecting a rise in competitive pressure. The company will also plans to boost clean energy generation to help keep up with the government’s anti pollution drive which is aimed to cut down the consumption of coal.