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Inner Mongolia Ordos coal industry profits down 18.6% y-o-y

Ordos City in northern China’s Inner Mongolia saw its coal industry realize the profit of 24.13 billion yuan ($3.69 billion) over January-September, down 18.6% year on year, accounting for 72.2% of the total profit of above-sized industries across the city, showed data from the municipal Statistics Bureau on November 9.

The profit at coal industry posted a year-on-year drop of 34% and 29.4% in the first quarter and first half of the year, respectively.

A total 107 coal producers managed to make profit, with 71 of them realized year-on-year growth in profits.

Shenhua Shendong Coal Group, Yitai Group and Shenhua Group Zhungeer Energy Co., Ltd. – the top three coal producers in Ordos, registered a combined profit of 6 billion yuan between January and September this year, slumping 50% on year and pulling down 20.6 percentage points of growth rate in the Ordos coal industry.

The losses in coal industry continued to expand in the past nine months, albeit at a slower pace. 51 or 30.7% out of 166 coal enterprises suffered losses, 6.4 percentage points higher than the year prior.

Combined losses of the above enterprises rose 34.9% on year to 2.34 billion yuan or 33% of the above-sized firms’ total losses during the same period, compared with the rise of 43.6% in losses over January-August.

Of this, 7 enterprises saw their losses over 100 million yuan during the past nine months, one more than a year ago.

Meanwhile, coal industry in Ordos saw its above-sized enterprises realize the core business revenue of 158.1 billion yuan over January-September, down 2.8% on year, 2.7 and 0.7 percentage points lower than the first quarter and the first half of the year, respectively.

It accounted for 52.7% of the above-sized enterprises’ total revenue, 1.4 percentage points lower than last year.

Total core business revenue of Shendong, Yitai and Zhungeer Energy during the same period fell 23.4% on year to 40.72 billion yuan or 25.8% of the above-sized total revenue.
 
source: http://en.sxcoal.com