China Coal Energy sees 38pc profit drop on lower prices
China Coal Energy, the listed unit of the nation’s second largest coal producer China National Coal Group, posted a 38 per cent drop in interim profit, hurt by lower coal price.
Net profit for the year’s first six months was 3.2 billion yuan (HK$4.0 billion), down from 5.2 billion yuan in the year-earlier period, it said in a statement.
Turnover fell 11.6 per cent to 40.4 billion yuan, on the back of a 12 per cent decline in self-produced commercial coal selling price to 436 yuan per tonne.
This is despite a 3.3 per cent increase in coal sales to 7.5 million tones during the reported period.
The firm’s share price has plunged 44 per cent since the beginning of the year, under-performing the Hang Seng Index’s 3 per cent decrease, amid weaker economic growth and energy demand, besides an oversupply of coal.
China Coal produces and sells thermal coal and coking coal as well as manufactures and markets coal mining equipment.
