Huaneng Renewables Profit Gains 2.9% on Anti-Idling

Aug 12, 2014 12:20 pm ET

(Corrects percentage change in headline, first paragraph.)

Aug. 12 (Bloomberg) -- Huaneng Renewables Corp., China’s second-biggest wind-farm developer, said first-half profit increased 2.9 percent on efforts to reduce idled power.

Net income increased to 686.1 million yuan ($111 million) from 666.9 million yuan the previous year, Huaneng said in an filing to the Hong Kong Stock Exchange today. Sales gained 2.4 percent to 3 billion yuan. Wind-power generation dropped 2 percent to 5,833 gigawatt-hours, it said.

Calmer weather in the half reduced the amount of electricity generated by wind turbines in China even as capacity increased. China Datang Corp. Renewable Power Co. last month said it may report a loss in the half because of the reduced amount of wind.

“Wind resources worsened this year, leading to decreased electricity generation per turbine,” said Zhou Yiyi, a Shanghai-based analyst from Bloomberg New Energy Finance.

Huaneng Renewables took steps to minimize power generation losses due to grid congestion and controlled costs, partly offsetting the effect of unfavorable wind conditions in the first half, the Beijing-based company said in the statement.

Huaneng Renewables fell 2.6 percent to close at HK$2.61 in Hong Kong trading today before the earnings announcement. The stock has lost 30 percent this year, compared with a 6 percent gain in the city’s benchmark Hang Seng Index.