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Tuesday, 06 July 10
SHENHUA GROUPS 2013 PROFIT MAY EXCEED $15 BILLION - BUSINESS WEEK


Business Week reported that, Shenhua Group Corp., China’s biggest coal producer, expects profit to exceed 100 billion yuan ($15 billion) by 2013 as the company develops projects in Australia, Indonesia, Mongolia and Russia.

The company has a revenue target of 300 billion yuan for 2013, according to notes in a speech to be delivered tomorrow by Li Jingping, general manager of coal transport and sales, at a coal conference in Dalian city.

Profit may reach 45 billion yuan in 2009, Zhang Xiwu, chairman of the parent of Hong-Kong listed China Shenhua Energy Co., said last year. Peabody Energy Corp., the biggest U.S. producer, reported a net income of $448 million in 2009. Shenhua is developing overseas projects to meet demand for coal, used to generate 80 percent of China’s power, after the nation became a net importer of the fuel for the first time in 2009.

China’s domestic coal output may increase to 4 billion tons by 2015, according to the notes. The country’s coal-fired power generators capacity may reach 960 million kilowatts, he wrote.

Shenhua’s installed power capacity may reach 62.2 million kilowatts in 2015, of which 48.6 million kilowatts will be coal- fired generators, and 5.4 million kilowatts wind and solar plants, the notes said.

Shenhua’s Power Output

The company’s power output for this year is estimated at 150 billion kilowatts and coal production may reach 360 million tons. Commercial coal sales may rise to 420 million tons by the end of this year, Li said.

China’s share of electricity generated from coal-fired plants may fall to 72 percent by 2015 from 75.9 percent now, according to Li. The world’s biggest greenhouse gas emitter wants to cut coal consumption and boost use of cleaner-burning alternatives as the government sets a target to reduce carbon dioxide the nation emits for each unit of economic output by 40 to 45 percent by 2020 from 2005 levels.

The company may produce 2.5 million tons of fuel from coal- to-liquid projects, Li wrote separately.

Shenhua started operating the nation’s first plant to turn coal into fuels such as gasoline and diesel in 2008. The plant is located in Inner Mongolia.
Source: Business Week



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