Huaneng Power slips into the red on costly coal
HONG KONG, Oct 22 (Reuters) - Chinese electricity provider Huaneng Power International (0902.HK) posted a loss in the third quarter as tariff hikes were insufficient to offset exorbitant coal prices.
The country's largest listed electricity power supplier said late on Monday that it lost 2.16 billion yuan ($316.1 million) in the three months ended September, versus a 1.47 billion yuan net profit a year ago, based on Chinese accounting standards.
Huaneng said it expected to see a loss for 2008 as fuel coal prices stayed at high levels.
Huaneng (HNP.N) (600011.SS) generated 12.7 percent more power in the first nine months, or 140.4 billion kilowatt-hours.
Huaneng and rivals Datang International (0991.HK) (601991.SS), Huadian (600027.SS) and China Resources Power (0836.HK) are racing to supply the world's largest market for electricity after the United States.
But rising spot prices for coal, which fires three-quarters of the country's power capacity, have eroded bottom lines and pushed power companies into the red. A slowing Chinese economy is also taking the shine off power consumption growth. ($1=6.833 Yuan) (Reporting by Alison Leung)
