China's Huaneng expects coal prices to stay high
HONG KONG, Oct 22 (Reuters) - Huaneng Power International (0902.HK), China's top listed electricity power supplier, said on Wednesday it needs another huge power tariff hike to offset soaring coal costs, as it expects prices to remain high in 2009.
Executives told analysts on a conference call that the firm needs another 0.27 yuan ($0.04) per kilowatt-hour of tariff increases this year to maintain its profit level of 2007, but did not say if they were referring to actual profit or growth.
Beijing-based Huaneng (HNP.N) (600011.SS) aims to contain unit fuel cost growth at 50 percent this year, much higher that an original target of 18 percent set at the begining of 2008.
Huaneng posted a loss of 2.16 billion yuan ($316 million) in the three months ended September, versus a profit of 1.5 billion yuan a year ago, and expects a record loss for the whole of 2008 as soaring coal prices swallowed up the impact of two power tariff hikes. ($1=6.837 Yuan) (Reporting by Judy Hua)
