What’s new: China Coal Energy Co. Ltd. (601898.SH) reported its biggest profit ever in 2021 in a sign that last year’s domestic coal shortages had an upside for at least one part of the market — the producers.
Net profit attributable to shareholders more than doubled to 13.3 billion yuan ($2.1 billion) as annual revenue jumped 64% to 231 billion yuan — another record high, the state-owned company said in its annual report (link in Chinese) published late Thursday.
The Shanghai and Hong Kong-listed company, which both trades and produces coal, credited its record-breaking year to two factors — bigger sales and higher prices, the annual report said.
China Coal Energy sold 9.7% more coal in 2021, with total sales reaching 291 million tons, according to the annual report.
And the company made more on each sale over the year. In 2021, China Coal Energy earned 202 yuan more on average on every ton of coal it produced, and 331 yuan more on average on every ton it bought from third-parties, according to the annual report.
Background: Amid a widening gap between supply and demand, a benchmark spot price for thermal coal at northern China ports rose from 570 yuan per ton in mid-March to hit a peak of 2,600 yuan per ton in mid-October. The price has since fallen back as regulators have tried to rein in the market.
Contact reporter Manyun Zou (manyunzou@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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