Interim net earnings up 19.8pc to 10.3b yuan
China Shenhua Energy, the nation's largest coal producer, said strong domestic demand amid the country's soaring power consumption boosted its first-half profit by 19.8 per cent.
Net profit rose to 10.3 billion yuan for the six months ended June from 8.6 billion yuan a year ago while sales rose 29.8 per cent to 38.3 billion yuan. Earnings were slightly higher than a Bloomberg mean estimate of 10.16 billion yuan.
Mainland coal mining companies are benefiting from the country's rapid economic growth, which prompted higher industrial production and electricity consumption.
Despite government efforts to diversify energy sources, coal remains the major raw material to generate power in the mainland.
Shenhua Energy sold 97.8 million tonnes of coal in the first half, up 21 per cent from a year ago, while the average weighted price for domestic sales under long-term contracts jumped 6.6 per cent to 314.5 yuan per tonne.
