SHA:601088

Shenhua Energy Logs Marginal Profit Growth as Rising Costs Weigh on Revenue

China Shenhua Energy's (HKG:1088, SHA:601088) profit barely grew in the first half of 2026 as higher coal purchase and transportation costs outpaced revenue gains, even as the company sold coal at higher prices and expanded its chemical and power business.Attributable profit rose 1.9% year over year to 31.1 billion yuan, or 1.448 yuan per share, according to an after-market bourse filing on Monday.Revenue climbed 7.9% to 189.3 billion yuan, while cost of sales widened 9% to 132.6 billion yuan, or about 70% of overall revenue.The Chinese state-owned coal miner and electricity provider attributed the higher costs to elevated sales volume and procurement costs of purchased coal.Raw material prices also rose due to higher fuel and power costs, as did transportation charges, driven by increased vessel leasing fees, external railway transport costs, and other factors.Those pressures came even as the company's coal segment recorded a 1.8% increase in sales volume and a 4.5% jump in average selling prices. Commercial coal production, however, fell 3.6%, despite increased consumption in China.Shenhua's first-half report was restated after the company completed its acquisition of equity interests in 12 target companies from controlling shareholder China Energy Investment Corp. and its unit Western Energy during the first half.The board proposed an interim dividend of 0.98 yuan per share, tax inclusive, totaling 21.3 billion yuan and representing 68.4% of its first-half attributable profit. The proposal is subject to shareholder approval at a meeting on Sept. 23.