Long-term primary coking coal prices of China's Huaibei Mining Holdings Co., Ltd. in the second quarter of this year has roughly kept flat over the previous quarter and the fourth quarter of last year, according to Qiu Dan, the company's director and deputy general manager.
Huaibei Mining recently reported its operating revenue rose 5.52% year on year to 69.06 billion yuan ($10.05 billion) and net profit surged 42.83% year on year to 7.10 billion yuan in 2022.
In 2022, it produced 11.29 million tonnes of coking coal, accounting for 2.16% of the total coking coal output in China and about 50% of the company's commercial coal output.
In 2022, its coke production dropped 9.94% year on year to 3.69 million tonnes, while the production of methanol increased 9.86% from last year to 0.38 million tonnes.
Huaibei Mining is able to produce a complete series of coal chemical products including coke, methanol, tar, ammonium sulfide, crude benzene and refined benzene, said Qiu Dan.
The company plans to produce 23.3 million tonnes of commercial coal in 2023, 1.73% higher than 2022. Its coke output guidance for 2023 is set at 4.15 million tonnes, up 12.49% from 2022.
The company's operating revenue and net profit are estimated to reach 74.7 billion yuan and 7.08 billion yuan respectively in 2023.
The huge shortfall of net profit from the revenue is attributable to a much faster growth in the trading segment yet with lower gross margins, explained Sun Fang, Huaibei Mining's chairman.
(Writing by Shengnan Liu Editing by Harry Huo)
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