HUANENG Power International Inc., China’s largest listed electricity utility, has posted a 79.3 percent rise in its 2013 net profit, thanks to lower coal prices reducing fuel costs.

    Net profit rose to 10.5 billion yuan (US$1.7 billion) last year, 89.1 percent higher than the 5.9 billion yuan in 2012, Huaneng said in a filing to the Shanghai Stock Exchange yesterday.

    Revenue was 133.8 billion yuan, flat from 2012, as a 5 percent rise in power output was offset by lower power selling prices.

    “We expect power demand to continue to increase steadily in the near future due to stable economic growth. Coal prices are unlikely to fluctuate by too much given the ample supply,” it said in the announcement.

    “However, the company faces challenges in thermal power operations given that the government is pushing ahead with policies to promote clean and green energy.”

    Huaneng aims to raise output of its power plants by 2.4 percent this year, compared with national demand growth of 6.5 to 7 percent forecast by industry association China Electricity Council, reflecting rising competitive pressure.

    The firm also plans to boost clean energy generation to cope with government’s anti-pollution drive, which is taking aim at cutting coal consumption.

    While China’s power companies have benefited from a slump in coal prices, coal producers have suffered from the supply glut.

    On Tuesday, China Coal Energy Co., the country’s second-largest coal producer, reported a 57 percent drop in its net profit for 2013 as coal market remained sluggish.

    Net profit at China Coal Energy fell to 3.8 billion yuan from 5.03 billion a year earlier, it said. (SD-Agencies)