SINGAPORE, March 21 Huaneng Power
, the listed business of China's biggest power
generator, saw its 2016 net profit fall by a third, logging the
first decline in five years as a tepid Chinese economy kept
electricity usage weak.
Huaneng Power International Inc's net profit last
year fell 36 percent to 8.81 billion yuan ($1.28 billion), it
said in a filing to the Shanghai stock exchange. The last time
Huaneng reported an annual net profit decline was in 2011,
according to company data on Thomson Reuters Eikon.
"Power demand in China will likely see slower growth in
2017. The overall oversupply situation will persist and will be
more obvious in certain regions," Huaneng, a unit of Huaneng
Group, said on Tuesday.
China, the world's top power market, generated 5.91 trillion
kWh of electricity in 2016, up 4.5 percent on 2015, the National
Bureau of Statistics said.
China's power firms have been weighed down by the slowing
Chinese economy, the second largest in the world, with power
usage expected to rise by about 3 percent in 2017, Huaneng
quoted industry figures as saying.
Last week, another Chinese power firm Datang International
Power Generation Co Ltd said it swung to
red with a net loss of 2.6 billion yuan in 2016.
Huaneng's results came after the Chinese and Hong Kong
markets closed on Tuesday. Huaneng's Shanghai shares ended 2.1
percent higher, outperforming the benchmark Shanghai index
. Its Hong Kong stock closed flat, lagging the main Hang
($1 = 6.8830 Chinese yuan renminbi)
(Reporting by Lee Chyen Yee in Singapore and Meg Shen in Hong
Kong; Editing by Keith Weir)