Baosteel net profit up 18.2 pct in H1
29/8/2008 17:05
Shanghai-listed Baosteel, or Baoshan Iron and Steel, saw its net profit
rising 18.2 percent to 9.645 billion yuan (US$1.41 billion) in the first half of
the year, the company reported today.
Earnings per share for China's biggest
steel maker was 0.55 yuan, its interim report showed.
The half-year revenue
amounted to 103.6 billion yuan, up 10.11 percent year on year.
Operating cash
flow, however, declined by 5.54 billion yuan to 2.77 billion yuan in the Jan. to
June period, a result of soaring costs.
Despite the increasing prices of raw
materials such as coking coal and iron ore, the company still made greater
profit due to the marked-up sales price of steel and the efforts to cut energy
costs. This was achieved by further applying new technologies and improving the
product structure, the steel maker said on its website.
The company is still
faced with many market uncertainties in the second half. These include pressure
from a tight supply and degraded quality of coal, the rising price of iron ore
and a possible decline in demand growth, according to the company.
The
expected annual revenue of Baosteel in 2008 was 200 billion yuan, of which 51.82
percent had already been achieved in the first six months.
Xinhua
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