HomeProduct Complimentary download China Coal Energy 2016 self-produced coal sales may fall 18pct on yr

China Coal Energy 2016 self-produced coal sales may fall 18pct on yr

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Publish time: 23rd March, 2016      Source: www.cnchemicals.com
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China Coal Energy Co., Ltd, one of China’s major coal producers, expected its sales of self-produced commercial coal to slide 17.89% on year to 80 million tonnes in 2016, the company said in its annual report late March 22.The severe capacity oversupply in coal industry and the resultant flat coal consumption may continue this year, mainly impacted by slowing domestic economy and structural adjustment of energy mix, the company said.Yet, the condition is expected to gradually improve with the implementation of China’s the supply-side structural reform, it noted.In 2015, commercial coal sales of the company dropped 12.2% on year to 137.7 million tonnes, of which self-produced coal down 8.1% on year to 97.45 million tonnes.Pingshuo Co., Ltd, a subsidiary of the company, contributed 65.91 million tonnes or 67.6% of the total sales of self-produced coal in 2015, down 21.9% from a year ago.The subsidiary Huajin Co., Ltd and Shanghai Datun Energy Co., Ltd contributed 9.76 million tonnes and 7.29 million tonnes in self-produced coal sales in the year, rising 48.8% and up 1.3% year on year.The decline of coal sales also dragged down outbound rail transport of self-produced commercial coal last year, which was reported at 75.4 million tonnes, slipping 14.9% from a year ago.The company produced 95.47 million tonnes of commercial coal in 2015, down 14.6% year on year, with thermal coal down 18.2% on year to 86.61 million tonnes and coking coal up 47.2% on year to 8.86 million tonnes.China Coal planned to control sales cost of self-produced commercial coal within 167 yuan/t this year, and realize revenue of 50 billion yuan ($7.7 billion) or so, down 16% from the year prior.The sales price of the company’s self-produced commercial coal dropped 73 yuan/t last year, while sales cost fell 29.11 yuan/t on year to 166.46 yuan/t, which well eased the pressure of downward coal market.China Coal realized revenue of 59.27 billion yuan last year, down 16.1% on year; and suffered a loss of 2.52 billion yuan, down 428.7% from 766.7 million yuan of profit in 2014, the first annual deficit since its IPO in 2008.However, the newly-operated coal chemical segment helped realize profit of 1.5 billion yuan last year, growing to be a new source of profit for China Coal.CCR cordially invites you to participate in the 6th Global Coking Coal Resource & Market Summit to be held from 24th to 25th March 2016 in Taiyuan, Shanxi Province. The summit will provide professional insights on great changes that will impact market players over the mid and long term and how they should cement their positions in the market. For more details, please contact Gina Cao at +86 351 7219322 / gina.cao@fwenergy.com or click HERE.