Chinese coal company, China Coal Energy, has announced a loss of RMB854.16 million (US$133.44 million) for 1H15, down from a profit of RMB1.07 billion (US$167.15 million) over the same period in 2014.
Chinese coal companies have been hit by oversupply in the market as demand for fuel has dropped on weaker economic growth in China, tighter environmental regulations and a shift away from energy-intensive primary industries.
“During the 1H15, domestic coal demand continued to shrink due to various factors, among others, the decelerated growth of macro economy, the decline of international energy prices and the adjustment to domestic energy composition, which resulted in decrease in both the production volume and the sales volume of coal as well as high level of coal inventories,” said Wang An, Chairman of China Coal Energy.
The company does not expect a recovery in the short term, with Wang saying: “it shall be hard for the coal price to recover from the trough in the near future due to the challenging supply and demand situation in the coal market.”
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/24082015/china-coal-energy-swings-to-loss-in-1h15-2769/