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Shenhua exceeds 2008 coal output goal
By Fu Chenghao |
January 9, 2009, Friday
|
Print Edition
Print Edition
SHENHUA Group Corp, China's largest coal producer, exceeded its target of 250 million tons in raw coal output when it produced 19.3 percent more at 281.25 million tons last year.
Coal sales rose 7.5 percent to 311.2 million tons while power output gained 15.6 percent to 111.8 billion kilowatt-hours, Shenhua said in a statement yesterday.
The coal producer's profit climbed 28.5 percent to 38.3 billion yuan (US$5.6 billion) and turnover jumped 31.3 percent to 140.6 billion yuan, said Shenhua, the parent of listed China Shenhua Energy Co.
An economic slowdown in the closing months of last year had hurt coal prices and sales, leaving ample supplies in the domestic market.
Although coal prices started to rebound late last month, amid rising demand for winter heating needs and on an output resumption by some steel makers, the recovery may not be sustainable given the slowing economy, China Merchants Securities analyst Lu Ping said in a note.
Meanwhile, Beijing-based Shenhua, which earlier this week announced it had started operations of the nation's first coal-to-liquids project, plans to triple the plant's annual capacity to 3 million tons of fuels if the trial proves successful, Chief Executive Officer Zhang Yuzhuo told reporters in Beijing on Wednesday. He pointed out that every 1-million-ton rise in capacity would need an investment of 10 billion yuan.
Industry officials have said an oil price of US$40 a barrel or more could make coal liquefaction projects in China profitable. Crude oil traded at about US$43 a barrel in New York yesterday, a sharp drop from more than US$147 in July.
Coal sales rose 7.5 percent to 311.2 million tons while power output gained 15.6 percent to 111.8 billion kilowatt-hours, Shenhua said in a statement yesterday.
The coal producer's profit climbed 28.5 percent to 38.3 billion yuan (US$5.6 billion) and turnover jumped 31.3 percent to 140.6 billion yuan, said Shenhua, the parent of listed China Shenhua Energy Co.
An economic slowdown in the closing months of last year had hurt coal prices and sales, leaving ample supplies in the domestic market.
Although coal prices started to rebound late last month, amid rising demand for winter heating needs and on an output resumption by some steel makers, the recovery may not be sustainable given the slowing economy, China Merchants Securities analyst Lu Ping said in a note.
Meanwhile, Beijing-based Shenhua, which earlier this week announced it had started operations of the nation's first coal-to-liquids project, plans to triple the plant's annual capacity to 3 million tons of fuels if the trial proves successful, Chief Executive Officer Zhang Yuzhuo told reporters in Beijing on Wednesday. He pointed out that every 1-million-ton rise in capacity would need an investment of 10 billion yuan.
Industry officials have said an oil price of US$40 a barrel or more could make coal liquefaction projects in China profitable. Crude oil traded at about US$43 a barrel in New York yesterday, a sharp drop from more than US$147 in July.
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