May 18, 2010 / 2:41 PM / 9 years ago

UPDATE 1-L & L sees strong '11 on higher Chinese demand, shrs up

* Sees 2011 EPS $1.33, up 42 pct from projected 2010 levels

* Sees 2011 rev more than double projected 2010 levels

* Shares rise as much as 10 pct

May 18 (Reuters) - Coal company L & L Energy Inc LLEN.O forecast strong 2011 results on higher Chinese coal demand, sending its shares up as much as 10 percent Tuesday morning.

L & L currently expects to earn $1.33 a share in 2011, up 42 percent over its 2010 profit view. It expects revenue to more than double from its 2010 projections to $218 million.

“As a result of a drought in southwestern China, demand for coal in China is extremely high as coal-fired power plants are being utilized to offset decreases in hydropower output,” the company said.

L & L added that coking coal, an essential material in steelmaking, had also seen recent high levels of demand and subsequent price increases.

Shares of the company rose 10 percent to a high of $10.68, before paring some gains to trade up 32 cents at $10.05.

The stock was among the top percentage gainers Tuesday on Nasdaq. (Reporting by Adveith Nair in Bangalore; Editing by Prem Udayabhanu)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below