Coal is delivered onto a ship for delivery (Photo: VNA)Hanoi (VNS/VNA) - Listed coal producers recorded profits during the secondquarter and first half of 2017, but the second half of the year may not beso promising due to large stockpiles, adverse weather and technological andgeological barriers.
Accordingto the economics and business news hub cafef.vn, seven of the eightlisted firms posted higher revenues for the second quarter compared to the sameperiod of 2016.
Vinacomin-CaoSon Coal JSC (TCS) recorded the highest annual growth rate of 52 percent,bringing the company’s second-quarter revenue to 1.19 trillion VND (52.9million USD).
Amongthe eight listed companies, only Vinacomin-Coc Sau Coal JSC (TC6) saw itsrevenue fall from one year ago.
TCSwas among the six mining companies that saw their combined revenue increaseduring the first six months compared to the same period last year.
Amongother mining companies that recorded higher first-half combined revenue areVinacomin-Ha Tu Coal JSC (THT), Vinacomin-Deo Nai Coal JSC (TDN) andVinacomin-Ha Lam Coal JSC (HLC).
Meanwhile,TC6 reported that its first-half combined revenue was down 18 percent year onyear. The other miner that also recorded lower combined revenue is Vinacomin-MongDuong Coal JSC (MDC), whose figure decreased slightly after one year.
Inthe second quarter, firms that also reported higher post-tax profits are MDC,TC6, Vinacomin-Vang Danh Coal JSC (TVD), HLC, THT and TDN.
Ofthose, HLC posted the highest profit of 18 billion VND, a yearly rise of 22.3 percent.Meanwhile, MDC, TDN and TVD were able to earn profits after suffering losses inthe first six months of 2016.
Thetwo other coal miners, NBC and TCS, announced lower post-tax profits in thefirst six months compared to the same period of 2016.
Afterthe first six months, combined post-tax profits were higher for HLC, MDC, TC6,TDN and TVD.
Thoughthe earnings figures exceeded those of 2016, companies are facing second halfchallenges.
WhileHLC and NBC have accomplished 86 percent and 81 percent of their targetedpre-tax profits for 2017, the other six companies have a long way to go toachieve their targets.
[Government urges competitive coal market]
OnJune 6, the eight listed coal firms had stockpiles worth 2.28 trillion VND, anincrease of 53 percent from the beginning of the year while their total debt(payables) was 11.74 trillion VND, accounting for 85 percent of their totalcapital.
Thecoal mining sector is facing obstacles, such as having to drill deeper toexploit coal in the rainy third quarter of the year.
Localmining companies also have trouble recruiting and keeping skilled employees.According to Ta Van Ben, deputy director of Vinacomin-Mong Duong Coal JSC, thecompany needs to hire an additional 150 miners.
Somelocal mines are encountering other difficulties, namely their small scale andgeological complexity. “Though we have advanced, modern technologies, it isdifficult to apply those technologies in specific areas. Therefore, we shouldstudy the aerial geological conditions carefully and optimise the use of machineswherever we can,” said Nguyen Tien Chinh, former head of the Science-Technologyand Development Strategy Department at the Vietnam National Coal and MineralGroup (Vinacomin).-VNA
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