Citic Resources Shares Surge to 6-Month High on Profit Forecast
Citic Resources Holdings Ltd. (1205), a Chinese oil and coal producer with assets in Kazakhstan and Australia, surged to a six-month high after saying it expects a “material increase” in 2011 profit.
The stock climbed as much as 9.9 percent to HK$1.33 in Hong Kong and traded at HK$1.30 as of the noon local time break, set for the highest level since Aug. 4. The benchmark Hang Seng Index gained 2 percent.
Citic Resources said full-year profit will rise after the sale of its stake in Macarthur Coal Ltd. and partial disposal of interest in the Codrilla Deposit coal mine in Australia, according to a statement to the Hong Kong stock exchange late yesterday.
Better operating performances due to higher energy and commodity prices and controls on operating expenses also helped, the company said.
Citic Resources’s 2010 profit surged to HK$1.1 billion ($142 million) from HK$115.7 million of a year earlier, the company said March 27, 2011.
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