China Shenhua Energy Company (1088) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB168,078 million, down 0.8% year-over-year; profit attributable to equity holders was RMB32,771 million, down 11.1%.

• EBITDA for H1 2024 was RMB55,822 million, down 9.5% year-over-year; basic EPS was RMB1.649.

• Coal sales volume increased 5.4% year-over-year to 229.7 million tonnes, but average coal sales price fell 5.8%.

• Power generation rose 3.8% to 104.04 billion kWh, but average electricity sales price decreased 3.3%.

• Share prices of A and H shares rose 41% and 34% respectively in H1 2024.

Financial highlights

• Gross profit was RMB50,232 million, down from RMB55,298 million year-over-year.

• Net cash from operating activities increased 13.6% to RMB52,668 million.

• Net cash used in investing activities rose 140.5% to RMB43,857 million, mainly due to increased time deposits.

• Total assets reached RMB675,843 million, up 6.7% from year-end 2023; total liabilities rose 32% to RMB200,388 million.

• Final dividend of RMB44,903 million for 2023 was paid in H1 2024; no interim dividend declared.

Outlook and guidance

• Domestic coal demand is expected to improve in H2 2024 due to seasonal and policy factors.

• Annual electricity consumption in China is projected to grow by about 6.5%, with a tight supply-demand balance during peak seasons.

• Coal production for the year is projected to be similar to 2023; coal prices may fluctuate within a reasonable range.

• The company will focus on energy security, green development, innovation, and value creation to achieve annual targets.