Shenhua profit rise misses market expectations
By Hui Ching-hoo (China Daily)Updated: 2007-03-27 08:50
The coal liquefaction projects are scheduled for completion by the end of 2007. Annual capacity of the first production line would amount to 1.08 million tons.
"Apart from the asset injection, we are seeking acquisition opportunities overseas. For the domestic market, we aim to acquire good quality players to consolidate our leading position."
To consolidate underlying assets and upgrade technology in coal mining, Chen said Shenhua planned to invest 27.4 billion yuan as capital expenditure for this fiscal year, up 11 percent.
The company aimed to realize commercial coal production exceeding 200 million tons by 2010. Further, it expected railway transport capacity and port shipment capacity to reach 200 million and 140 million tons in 2008.
With tightening market supply, Chen expected the coal price would remain high in the short term. "The unit cost of coal stayed flat in the previous year, hovering at 131 yuan per ton. But it still has room to fall in the light of the drop in transport costs," said Chen.
Shenhua exported a total of 23 million tons of coal in 2006. Chen said the company would continue to enlarge its export capacity.
Shenhua's Hong Kong-traded shares closed at HK$19.96 yesterday, falling HK$0.19 or 0.94 percent.
(China Daily 03/27/2007 page13)
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