China Shenhua Energy forecasts 18% net profit growth for 2009

Published: 26 Oct 2009 16:47:37 PST

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Oct. 27, 2009 (China Knowledge) - China Shenhua Energy Co Ltd<601088><1088>, the largest coal producer in the country, predicted that its net profit will grow by 18% year on year in 2009 due to increasing coal demand amid macroeconomic recovery, sources reported.

Revenue will increase an estimated 14% year on year to an estimated RMB 160 billion this year, and net income will reach an estimated RMB 45 billion, revealed the company chairman Zhang Xiwu.

Shenhua Energy will increase its coal output to an estimated 320 million cubic tons in 2009. The firm's coal output grew 10.4% year on year in the first nine months of this year.

Electricity consumption in China is likely to rise in along with heating demand during the winter season. Spot coal supplies in Qinhuangdao, a main port for coal trade, has dropped to a five-month low, and thermal coal prices reached a yearly high over the weekend.