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China Shenhua Energy says 3Q net profit up 48 pct

China Shenhua Energy says 3Q net profit up 48 pct

China Shenhua Energy Co., the country's biggest coal producer, said Tuesday that its third-quarter net profit climbed 48 percent thanks to higher prices and strong demand.
Shenhua's 7.89 billion yuan ($1.15 billion) in net profit for July-September compares with net profit of 5.32 billion yuan in third quarter 2007.
Revenues rose 33 percent over a year earlier, to 28.23 billion yuan ($4.13 billion), the company said in a statement to the Hong Kong Stock Exchange.
Shenhua, which has operations spanning mining, shipping and power generation, benefited from strong demand and higher prices during the first nine months of the year.
The company produced 137.9 million tons of coal in January-September, up 17.6 percent from the same period a year earlier. It's power generation rose 27 percent, to 75.5 billion kilowatt hours.
Although global demand has weakened recently due to the global economic slowdown, coal prices in China have been rising, straining power producers' margins.
Meanwhile, coal prices were up about 18 percent from a year earlier, to an average of 370 yuan per ton for the first nine months of the year.
China depends on coal to produce about 70 percent of its electricity, and consumption is forecast to rise by 11.5 percent this year, according to industry figures.
Shenhua's shares edged 0.1 percent lower on Tuesday, to 17.13 yuan.


Updated : 2021-08-02 17:47 GMT+08:00