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BEIJING, Oct. 28 -- Coal producer Yanzhou Coal Mining Co. said Thursday
that third-quarter earnings slumped 55 percent as prices and production fell.
The coal miner, based in the northern Shandong Province, said in a
statement that it earned 384.61 million yuan (US$47.54 millio
n) for the three
months ending September.
That compared with 855.78 million yuan in the same period a year ago,
according to China's accounting standards.
Shares of Yanzhou Coal Mining, which bought Australia's Southland Coal Mine
last year, had lost 18.6 percent in the past three months through Wednesday as
Chinese coal prices weakened.
Many analysts had expected Yanzhou Coal to report lower output in the third
quarter as villagers had to be relocated near some of its mines, disrupting
production.
Prior to the results release, UBS had expected the firm's production of raw
coal to fall as much as 43.1 percent in the third quarter from a year earlier.
However, many analysts expect Yanzhou's output will rebound in the fourth
quarter. Still, for the entire year, one U.S. investment bank forecast sales
volume would fall by as much as 16 percent to 33 million tons.
Analysts expect domestic coal prices will remain strong in the final
quarter, helped by more coal-fired power plants beginning operations and slower
coal output following the government's closure of down smaller mines.
(Source: Shenzhen Daily/Agencies)
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