China Coal Energy Co., Ltd., one listed arm of China National Coal Group, posted its net profit contract 27.9% year on year to 4.15 billion yuan ($618.61 million) in the first three quarters, said the company in a statement on October 28.
Its total operating income reached 100.24 billion yuan, rising 6.4% from the previous year, showed the statement.
This was attributed to the increased sales of commercial coal and growing revenues from coal mining equipment business, and the operation of key power projects, which offset the impact of price decline in coal and coal chemical products, China Coal said.
During January-September, 80.29 billion yuan of sales revenue was contributed by coal business, rising 6.8% over the same period of the previous year, while the sales cost of self-produced commercial coal dropped 8.0% from a year ago to 195.62 yuan/t.
However, as coal prices slid, gross profit of coal business contracted 2.33 billion yuan or 9.5% over the first three quarters of 2019 to 22.10 billion yuan over January-September this year.
Sales price of its self-produced commercial coal tumbled 57 yuan/t year on year, and that of coal bought from traders fell 44 yuan/t year on year, reducing revenue by 9.33 billion yuan in the period.
China Shenhua also said that its net profit shrank 9.51% year on year to 33.56 billion yuan in the first three quarters of this year, as coal sales volumes declined 2.5% and average sales prices dropped 5.2% on a yearly basis.
(Writing by Shengnan Liu Editing by Tammy Yang)
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