① China's Shenhua's coal export sales volume fell to zero for the first time this year ② Although coal production and sales increased year-on-year, it still did not account for the decline in profit brought about by falling coal prices ③ Spot coal prices sold through sales groups fell 22.5% year on year
Financial News Agency, October 27 (Reporter Xing Qixin)Affected by falling coal prices, the net profit of China Shenhua (601088.SH), the largest listed coal company in China, continued to decline in the third quarter.
In the third quarter, China Shenhua's operating income was 83,025 billion yuan, down 2.2% year on year; net profit attributable to shareholders of listed companies was 14.990 billion yuan, down 16.7% year on year; net profit after deducting non-return mother was 14.841 billion yuan, down 17.1% year on year.
China's Shenhua said in its three-quarter report that the decline in profit was mainly due to the decline in coal prices and the year-on-year increase in income tax expenses in the coal business.
In terms of operating data, China Shenhua produced 81.3 million tons of commercial coal in the third quarter, up 4.5% year on year; coal sales volume was 114.6 million tons, up 15.6% year on year. The sales volume of polyethylene and polypropylene was 88,800 tons and 87,300 tons, respectively, up 3.5% and 5.4% year-on-year, respectively.
Although coal production and sales have increased year on year, it is still difficult to withstand falling coal prices. According to the contract, more than 80% of China's Shenhua's coal sales in the first three quarters were still sold through long-term cooperation, but benefiting from the easing of coal supply, spot sales through sales groups accounted for more than 10% of total sales this year, yet spot prices fell 22.5% year on year.
It is worth noting that in previous years, the company still exported a small amount of coal, but this year's export sales dropped to zero for the first time. In terms of power generation business, the scale of China's Shenhua gas power generation and photovoltaic power generation has increased, but the majority is still coal-fired power generation. In the third quarter, the power generation volume and electricity sales volume of China's Shenhua coal-fired power generation declined by nearly 4 points.
Regarding the trend of the coal industry in the fourth quarter, China's Shenhua expects the coal economy to remain generally stable. Factors such as hydropower output, extreme weather, and the coal safety situation will have a short-term impact on coal supply and demand, and supply may be tight during some periods and in some regions.