China Coal net doubles
China Coal Energy, the mainland's second-largest coal producer, said first-half profit almost doubled as surging demand enabled it to increase output and selling price.
Net profit jumped to 2.65 billion yuan in the first six months from 1.48 billion yuan a year earlier, while sales rose 14 per cent to 16.72 billion. Earnings per share were 23 fen. The company will pay an interim dividend of 8.9 fen a share.
The earnings growth was a result of 'the gradual expansion of production volume, steady increase of product prices and further optimisation of the sales structure and effective cost control', China Coal said.
Raw coal production in the first half rose 18 per cent to 43.4 million tonnes. Sales of self-mined coal, accounted for 81 per cent of the total 41.7 million tonnes coal sold.
Revenue from sales of coal mined by the company increased 30 per cent to 11.4 billion yuan, China Coal said. Its gross profit margin grew 5.5 percentage points to 26.2 per cent.
The average domestic sales price of self-produced thermal coal rose 10.1 per cent in the first half to 328 yuan per tonne, while self-produced coking coal rose 11.2 per cent to 627 yuan a tonne, it added.
China Coal is preparing a 22 billion yuan share offering in the mainland to fund coal, methanol, coke and power projects. It would sell as many as 1.52 billion A shares in Shanghai, China Coal said in a statement posted on the Hong Kong stock exchange website yesterday.