When the largest coal producer in China puts out the kind of numbers China Shenhua Energy Co. has recently reported, it’s an unmistakable signal that the most populous country on the planet is continuing to step back from coal.
That’s according to the Institute for Energy Economics and Financial Analysis (IEEFA), having ran the rule over the company’s 2014 results and 2015 business targets.
The numbers reveal a strategic shift by Shenhua as it reduces its volumes, its operating costs and its capital spending, IEEFA says, and the 2015 numbers in particular signal an acceleration in this strategy.
The company sees a 10% drop in its domestic coal sales in 2015 (a 47 million tonne reduction), 2015 capital expenditure plans for coal and power generation down 25% over 2014, and expects its ports and rail investment to drop 12% year-over-year.
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