(Yicai Global) Oct. 13 -- China Coal Energy, the country’s second-largest listed coal company, expects to have increased its net profit by as much as 71 percent in the first three quarters due to high coal prices.

From January to September, net profit may have jumped by 55 percent or up to 71 percent to a point between CNY18.4 billion and CNY20.3 billion (USD2.6 billion to USD2.8 billion) from a year earlier, the Beijing-based firm said in a statement yesterday.

China Coal Energy is a joint-stock firm set up by China National Coal Group in 2006. It went public in Hong Kong that year and issued shares on the mainland in 2008.

Coal prices are predicted to stay high this year. Such fossil fuel produced by China Coal Energy cost CNY752 (USD105) per ton in the first half, up 39 percent from a year ago, based on the company's earlier statement. Coal bought and sold by the firm cost CNY833 per ton, rising by 41 percent.

The mining company produced 10.9 tons of commercial coal in August, up 22 percent from a year ago. It sold 10.7 million tons of commercial coal, up 18 percent.

In August, the firm's output growth was mainly coming from its Dahaize mine in northwestern China's Shaanxi province, The Paper reported. The mine began trial production that month and has been given the green light to raise its annual capacity by five million tons to 20 million tons.

Once the mine's capacity is increased, which may happen after the related paperwork is finished next year, the firm will become increasingly self-sufficient in production, it said.

China Coal Energy has three other projects underway. The Yilan No. 3 mine in Heilongjiang province with an annual capacity of 2.4 million tons was completed recently. The Libi coal mine in northern China's Shanxi province with a capacity of four million tons per year is scheduled to finish in March 2025. Finally, the Weizigou coal mine in the Xinjiang Uygur Autonomous Region with a 2.4 million ton capacity is expected to be completed in December 2025, the company said on Sept. 21.

In the first half, China Coal Energy logged a 76 percent surge in net profit to nearly CNY13.4 billion from a year ago. Its revenue rose by 16 percent to exceed CNY118 billion.

Despite the latest profit boost, China Coal Energy's Shanghai-listed stock price [SHA: 601898] dropped 6.6 percent to CNY10.33 (USD1.40) as of 1.09 p.m.

Its Hong Kong-listed equity price [HK: 1898] was 5 percent down at HKD7.20 (US 90 cents) during the lunch break.

Editor: Emmi Laine, Xiao Yi