It is reported that Huaneng Power International posted a 41.82%YoY decline in first half 2011 net profit attributable to shareholders to CNY 1.18 billion despite a 31.11% increase in revenue to CNY 64.05 billion.

Operating cost increased 34.16%YoY in the first half.

According to Huaneng Power, the higher cost of coal, higher interest rates and increased power generation volume were the major causes of its net profit decline. It will seek new sources of coal supply in the second half and make further efforts to control the cost of coal.

The operating margin of its power generation and heat supply business dropped 1.81 percentage points YoY to 9.34% in the first half.

(Sourced from China Business News)