国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Economy

Markets

Industries

Insights

Reports

Events

Huaneng dips close to daily limit

By Si Tingting (China Daily)
Updated: 2008-10-23 11:29

The share price of Huaneng Power International came within a hair's breath of its daily limit on the Shanghai Stock Exchange, after announcing a third-quarter loss of 2.16 billion yuan ($31.59 million).

The company, one of the country's largest listed power producers, suffered the huge loss due to rising coal prices and the government's electricity price caps.

The company said in its third-quarter report that it may post a full-year loss due to higher coal costs, which offset gains from rising electricity prices. The Beijing-based utility made a profit of 1.56 billion yuan a year ago.

"Although power tariffs have been adjusted upwards on two occasions this year, the increment still cannot offset the rise in fuel costs," Huaneng said.

"If thermal coal prices remain at high levels in the fourth quarter and no new tariff adjustment is adopted, the company will continue to lose money."

Shi Yan, a Shanghai-based utilities analyst at UOB-Kay Hian Ltd, told China Daily that the cost of fuel coal accounts for 75 to 80 percent of the firm's total costs and Huaneng's performance would gradually improve in the coming months only if coal prices were lowered. She said that dwindling coal demand resulting from the global economic crisis was likely to drive prices down.

"As all power companies had a lackluster third quarter, I believe the government should think about raising electricity prices," she added.

According to a report from Donghai Securities Co Ltd, coal prices will remain relatively high, though market prices may drop from time to time.

It added that a lower CPI would make it possible for the country to raise electricity prices for the third time this year. Although government tariff caps prevent power companies from passing on record coal costs to customers, the authorities have already raised electricity prices twice this year in July and August to ease the burden on power companies.

By balancing these two factors, Donghai Securities said it believes Huaneng will enjoy a better performance in the fourth quarter.

Most listed power companies had a gloomy third quarter. According to Wind Info, the leading integrated service provider of financial data and software in China, among the 26 listed power companies that released third-quarter reports, 18 announced a loss and 70 percent expressed concern over future performance.