Profit at China Shenhua Energy Co jumped to the highest since 2012, as strong demand and government efforts to rein in overcapacity helped bolster prices.
|Profit at China Shenhua Energy Co jumps to the highest since 2012|
The Beijing-based company, which also runs power stations and railroads, had flagged the profit jump in January 2018.
In its latest statement to the Hong Kong Stock Exchange the company reported that its net income had climbed to 47.8 billion yuan from 24.9 billion yuan a year ago, with revenue rising 36% to 248.7 billion yuan.
Shenhua said its output this year may fall to 290 million tonnes from 295.4 million tonnes in 2017. Coal sales will also likely slide to 430 million tonnes, from almost 444 million tonnes last year.
This performance is in contrast to the nation’s overall coal output, which may increase as China starts new “advanced” capacity mines this year. Imports will remain steady, the company said.
Shenhua proposed a final dividend of 0.91 yuan per share for 2017, compared with a 2.51 yuan special dividend in 2016.
In 2017, coal prices were boosted by China’s efforts to cut overcapacity by closing some mines and restricting imports. Demand was also underpinned by robust economic growth.
The National Development and Reform Commission, the nation’s top planner, said this year that it does not intend to introduce output restrictions in 2018, as long as prices stay in or above a range considered acceptable.