Shenhua Energy profit rises 14.6% on higher output

China Shenhua Energy Co., the nation’s gest coal producer, has said profit in the first nine months rose 14.6 percent on increased output. Net income climbed to 26.03 billion yuan from 22.7 billion yuan a year earlier, while sales rose 13.7 percent to 88.15 billion yuan.

China’s demand for coal, used to generate about 80 percent of the nation’s power, has risen as the Government’s stimulus spending drove third-quarter gross domestic product growth to its fastest pace in a year. Shenhua Energy increased coal output by 15.2 percent in the first nine months to 158.8 million metric tons. “The company achieved outstanding results in production and operation. The continuous good performance of the macro economy is favorable for coal demand,” a statement said.

Parent company Shenhua Group Corp. may report an 18 percent gain in 2009 profit, Chairman Zhang Xiwu said, adding the group’s net income may climb to 45 billion yuan while revenue is likely to increase 14 percent to 160 billion yuan.