China Coal Energy profit doubles on coal price hike

Apr. 10, 2008 (China Knowledge) - China Coal Energy Co<601898><1898>, the nation's second largest coal producer by revenue, said on Wednesday its 2007 net profit nearly doubled from a year earlier thanks to hiking coal price and output increase.

Net profit for last year amounted to RMB 6.02 billion, compared with RMB 3.17 billion in 2006. The figure beats previous estimate of RMB 5.91 billion made by 15 analysts in a Thomson Financial survey. Revenue increased 21% to RMB 36.4 billion, up from RMB 30.2 billion in 2006, according to its earnings statement.

However, its costs climbed by 6% to RMB 258.54 per ton last year due to higher spending on transport.
The company recommended a final dividend of RMB 0.06226 apiece.

It plans to produce more than 100 million tons of coal in 2008 to cater to rising domestic demand for the fuel and keep an annual production of 15 million tons in the coming three years ended 2010.

China, the world's largest coal producer as well as consumer, generates half of its power from coal.