Huaneng to put squeeze on contracts

ONE of China’s largest independent power producers, Huaneng Power International, announced its intention to realise coal contracts in an effort to avoid an acceleration of coal costs in the second half of the year.
Huaneng to put squeeze on contracts Huaneng to put squeeze on contracts Huaneng to put squeeze on contracts Huaneng to put squeeze on contracts Huaneng to put squeeze on contracts

Courtesy Huaneng Power International

Angie Tomlinson

The company was concerned sky rocketing thermal coal prices could eat into full-year profits, after announcing it had recorded an 8.58% year-on-year increase in interim net profit.

The company named drastic coal price increases and declining coal quality as two main threats on profits.

“We will work with our coal suppliers to increase the realisation rate of signed contracts and strengthen internal management to boost coal utilisation efficiency,” said chairman Li Xiaopeng.

Huaneng admitted it had experienced trouble in some companies failing to honour coal supply contracts.

South China Morning Post reported Li did not respond directly when asked whether Huaneng had been able to settle some contracts since a directive last week allowing coal and power firms to renegotiate contract prices with upward adjustments of not more than 8 percent.

He told analysts that the company hoped to secure 70% of its coal needs for next year through one-year contracts.

Most read Archive

loader

Most read Archive