Shaanxi Coal and Chemical Industry Group, the largest coal miner in northwestern China's province of Shaanxi, generated net profit of 10.82 billion yuan ($1.5 billion) in the first quarter of this year, up 5.4% year on year, the company said recently.
Revenue of the group reached 122.24 billion yuan in the same period, a 1.6% rise year on year. This strong financial performance sets a positive tone for the whole year.
Xiaobaodang, one subsidiary of the group, achieved a decline of 16.69 yuan/t in production cost compared with a year ago, due to increased efforts to raise efficiency.
Chairman Zhang Wenqi emphasized the ongoing efforts to improve efficiency and reduce costs at a meeting on April 15.
Wholly-owned subsidiary Shaanxi Coal Transportation and Sales Group achieved coal sales of 68.11 million tonnes in the first three months, up 2.1% year on year. The volume included 5.12 million tonnes distributed to local power plants over the period.
Over January-March, the subsidiary shipped 38.12 million tonnes of coal by train, up 3.1% year on year. Coal railings out of the province reached 32.42 million tonnes, a 5.4% rise.
With a noticeable decline in coal prices this year, the group is increasingly concerned about lower profitability. This may necessitate reforms in the company's internal structure.
(Writing by Alex Guo Editing by Harry Huo)
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