Huaneng Power Q1 profit drops 80%

Huaneng Power International Inc<600011><902>, China's largest publicly traded power company, said on Tuesday its net profit for the first quarter dropped 80% from a year earlier due to soaring coal prices.

First-quarter net profit based on Chinese accounting standard stood at RMB 242 million (about US$34.6 million), the company said in its earnings statement without giving the revenue figure.

As the leader in China's coal-fueled power companies, its profit drop indicates the whole industry is now facing challenges from the ever-rising coal prices, analysts said, adding that electricity price will not see a rise in a short term as the nation's high CPI triggered government curbs on prices of key products.