China’s top coal producer posted a net profit of 26.6 billion yuan, up from 20.5 billion in 2007, the company said in a statement filed with the Shanghai Stock Exchange. It did not give a quarterly breakdown, but calculating from nine-month results, fourth quarter net profit was 3.9 billion yuan, down 20 percent year-on-year, reflecting the late-2008 economic slowdown.

Shenhua outperformed the second-largest coal producer, China Coal Energy, whose 2008 net profit rose 19 percent to 7.1 billion yuan. China Coal does not provide any quarterly breakdowns on its website, making it difficult to gauge its fourth quarter performance. 

Shenhua’s operating revenue hit 107.1 billion yuan in 2008, up 30.5 percent, after its average selling price for coal rose 21 percent to 378.6 yuan per tonne.

Earnings per share stood at 1.34 yuan, against 1.11 yuan a year earlier. The company proposed a final dividend of 0.46 yuan, up from 0.18 the previous year.

Shenhua was the first company in China to own and operate a large-scale integrated coal transportation network, and also claims a zero-fatality rate in its mining operations this year.

Shenhua said it achieved efficiencies due to improved technology that led to a 17.5 percent increase in coal output to 185.7 million tons.

Production volume at its Shengli Mine exceeded 10 million tons for the first time, reaching 10.9 million tons, up 75.8 percent.

In 2009, the company aims to further increase coal production to 197 million tons.

In October 2008, Shenhua took its first step in developing coal resources overseas, with the capture of a mining lease in the Watermark exploration area of Australia. “Shenhua will continue seeking to acquire coal assets both at home and abroad this year,” it said.

While coal sales volumes also rose, up 11.3 percent from 2007 to 232.7 million tons, the company has cut its 2009 sales target to 220 million tons on expectations of falling global demand. 

The company generated 97.8 billion kwh of electricity last year, a rise of 22.6 percent, but has scaled back its forecast for 2009 to 94.1 billion kwh.

The company is confident it can weather the impact of the economic downturn, adding that it expects coal consumption to remain stable or rise slightly as industry demand recovers as a result of government stimulus measures. It plans to continue developing coal fields at home and abroad with capital expenditure of 29.9 billion yuan planned for 2009.