China Shenhua Energy, the listed flagship of the nation's largest coal producer. Shenhua Group, posted a 5.9 per cent year-on-year rise in first-quarter net profit, thanks to higher production and sales.
Net profit rose to 11.74 billion yuan (HK$14.44 billion) from 11.09 billion yuan a year earlier. Revenues grew 25.3 per cent to 59.53 billion yuan on the back of a 16 per cent rise in sales, to 108.3 million tonnes, and a 5.8 per cent increase in average selling price, to 441.2 yuan per tonne.
The first-quarter profit represents 23.5 per cent of the average estimate for full-year net profit of 50 billion yuan, estimated by analysts polled by Thomson Reuters.
Benefits from higher selling prices were offset by a 6 per cent rise in production costs, to 117.6 yuan a tonne.
China Shenhua has integrated mining, railway, port and power operations. Last month, it set targets to raise coal output 2.8 per cent to 289.9 million tonnes, and grow sales 6 per cent to 410.5 million tonnes.
This is a marked slowdown from last year's output growth of 14.8 per cent and sales increase of 23.7 per cent, although China Shenhua's management said the targets were conservative and would probably be overshot.
