Shenhua Energy reaps interim net profit of RMB 10.3 bln

China Shenhua Energy Co<1088>, the nation's largest coal producer, has posted a net profit of RMB 10.3 billion, up 19.8% from last year's RMB 8.6 billion, according to the company's interim report released on Sunday.

The company attributed the profit surge to the strong power demand brought by the country's rapid economic growth.

Shenhua sold 97.8 million tons of coal in the first six months, up 21% year on year, and its sales rose 29.8% to RMB 38.3 billion. The weighted average price for domestic sales under long-term contracts rose 6.6% to RMB 314.5 per ton. Its domestic coal sales business mainly comprised of sales of long-term contracts.

Moreover, in the first half, Shenhua generated 56% more electricity to 36.02 billion kilowatt-hours in the 11 coal-fired power plants it controlled and operated, and revenue from the power generation surged 71% to RMB 11 billion.

According to earlier reports of China Knowledge, the latest Hong Kong-listed state-owned titan is set to return to the mainland stock market in a bid to raise RMB 47.8 billion for the expansion of its coal, power and transportation operations.

Shareholders of Shenhua will meet on Friday to approve the Shanghai IPO.