Yanzhou Coal Slumps on Third-Quarter Loss: Hong Kong Mover
Yanzhou Coal Mining Co. (1171), the country’s fourth biggest producer, fell the most in more than seven weeks in Hong Kong trade after posting a quarterly loss.
The stock dropped as much as 8.8 percent to HK$11, and traded down 6 percent at HK$11.34 at 11:11 a.m. local time, taking its decline for the year to 31 percent. Today, it’s heading for the biggest decline since Sept. 5.
The company posted a net loss of 79.6 million yuan ($12.7 million), compared with a 1.08 billion yuan profit a year earlier, the Shandong-based company said in a filing on Oct. 26. The average coal price received by the group fell 19 percent in the quarter while operating costs rose to 13.03 billion yuan from 10.69 billion yuan a year ago.
“The Australia coal mines hit Yanzhou Coal hard in the quarter,” said Helen Lau, a Hong Kong-based commodities analyst at UOB Kay-Hian Ltd. “We expect to see only mild recovery in coal prices in domestic and seaborne call prices.”
Yanzhou said in its earnings statement on Oct. 26 that lower coal prices and higher costs were the reasons for the quarterly loss. It didn’t provide any guidance for the current quarter.
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