Bloomberg News

Huaneng Group Jan.-May Sales Gain 29% as Demand Rises

June 18, 2007

China Huaneng Group, the nation's biggest power producer, said sales between January and May rose 29 percent as the company increased output to meet demand in the world's fastest-growing major economy.

Sales climbed to 40.9 billion yuan ($5.4 billion) as totaled installed capacity reached 60,130 megawatts by May, Huaneng Group said in a statement on its Web site today. The company operated 87 power plants in 23 provinces as of the end of last month, it said.

Rising power demand from manufacturers and households has bolstered Chinese electricity producers' profit. Huaneng Group plans to boost hydro-power capacity and investment overseas as the government restricts the approval of coal-fired power stations to help cool the economy and cut pollution.

The company plans to build hydro stations to generate power in Tibet, Xinjiang and some Southeast Asian countries, Huaneng Group said today, without giving details.

The power producer will add 17 percent of generation capacity this year to help meet rising domestic demand, President Li Xiaopeng said March 5.

China's electricity output may rise 14 percent in the first half, an increase that may not be enough to meet demand in six provinces, the country's top economic planner National Development and Reform Commission said May 28.

The country plans to increase power generating capacity by 15 percent this year to about 720 gigawatts, the government said in April.

Huaneng Group is the parent of Hong Kong-listed Huaneng Power International Inc. (902)

To contact the reporters on this story: Wang Ying in Beijing at ywang30@bloomberg.net

To contact the editor responsible for this story: Reinie Booysen at rbooysen@bloomberg.net.


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