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Coal companies announce strong profit results in Q2

Friday, 28/07/2023 | 08:53:53 [GMT +7] A  A

Business results of coal enterprises prospered in the second quarter due to high demand for coal supply for thermal power.

Workers in an underground coal mine of Núi Béo Coal JSC in the northern province of Quảng Ninh. Photo nuibeo.com.vn

Coal enterprises prospered in the second quarter due to the high demand for the resource for thermal power.

Đèo Nai Coal JSC (TDN) reported a profit of VNĐ15.6 billion (over US$659,000) in the second quarter of 2023, 38 times higher than the figure of more than VNĐ400 million in the same period last year. In the first six months of 2023, the company achieved a profit of VNĐ26.4 billion, an increase of VNĐ20.1 billion compared to 2022.

The main reason was that fuel prices decreased by 15 per cent compared to the same period in 2022, and the company's production costs decreased, leading to higher profits.

Đèo Nai Coal is an enterprise that exploits and collects hard coal, lignite, and supports mining and ores, around 65 per cent of its invested capital comes from the Vietnam National Coal - Mineral Industries Group (Vinacomin).

Hà Tú Coal (THT) achieved profit after tax in Q2 of VNĐ28.04 trillion, an increase of VNĐ21.7 trillion compared to 2022. In the first six months of 2023, profits reached VNĐ44 billion.

Núi Béo Coal (NBC) achieved an after-tax profit in the second quarter of 2023 of VNĐ23.2 trillion, an increase of VNĐ15.2 trillion compared to the same period in 2022. Profit after tax in the first six months of 2023 increased by VNĐ19.37 trillion compared to 2022.

The company said that coal consumption improved in the second quarter of 2023, leading to higher profits.

Hà Lầm Coal (HLC) reported a profit after tax in the second quarter of VNĐ24 trillion, up VNĐ13 trillion compared to last year. Profits reached VNĐ56.1 trillion in the first six months, while in the same period in 2022 it only reached VNĐ28.78 trillion.

As for Mông Dương Coal (MDC), profit after tax in the second quarter of 2023 reached VNĐ15 trillion, VNĐ9 trillion higher than the same period last year.

However, there are still some coal enterprises reporting losses in the second quarter of 2023.

In the second quarter of 2023, output of Cao Sơn Coal (CST) decreased by 1.7 million tonnes over the same period, causing revenue to decrease by 49 per cent over the same period.

The same thing happened with Cọc Sáu Coal (TC6), which recorded a sharp decline in revenue of 33 per cent over the same period last year.

Stocks prosper

Along with the increasing profit momentum, since the beginning of this year, the stock prices of many coal enterprises have also continuously increased.

The share price of Đèo Nai Coal in early 2023 hit VNĐ7,000 per share, but now it has increased to over VNĐ11,000 per share.

The share price of Hà Tú Coal Joint is currently around VNĐ13,000 per share, while earlier this year the company was trading at VNĐ8,000 to VNĐ9,000 per share.

For Núi Béo Coal, shares reached VNĐ8,000 to VNĐ10,000 per share in January and are now trading at over VNĐ13,000 per share.

The price of Hà Lầm Coal currently fluctuates from VNĐ11,000 to VNĐ12,000 per share, but at the beginning of this year, it was only around VNĐ8,000 to VNĐ9,000.

The stock price of Đèo Nai Coal also witnessed the same process. Currently, the average price is over VNĐ11,000 per share, but at the beginning of this year the price fluctuated around VNĐ7,000 to VNĐ8,000 per share.

Source: Vietnam News