Andatee China Marine Fuel Services Corporation has today announced that its net profit rose by 73.5 percent during the third quarter of 2010 in a comparison with the corresponding period in 2009.
Net income attributable to shareholders for the third quarter was $2.6 million, or $0.27 per diluted share, compared to $1.5 million, or $0.25 per share, in the third quarter of 2009.
Revenues for the third quarter were $57.5 million, which represented an increase of approximately 78.5 percent compared with $32.2 million during the same period in 2009. The increase was said to be due to an increase in sales volumes and to a higher average crude oil price in the marketplace.
Total sales volumes during the third quarter of 2010 rose by 82 percent to 86,000 tonnes, up from 47,000 tonnes in the corresponding quarter last year.
The increase was attributed to the company's intensified marketing efforts of 1# marine fuel products by finding 'more reliable distributors' in Southern China. In addition, the results also included the 6,000-tonne contribution to sales volumes by
Mashan Xingyuan and
Hailong Petrochemical Co., Ltd., newly acquired in 2010.
The increase in the international crude oil price also contributed to the sales volume increase, which fluctuated around $79 a barrel, an average increase of approximately $20 per barrel as compared with the same period in 2009.
Gross profit rose by 52.8 percent in the third quarter of 2010 to $5.7 million, up from $3.7 million in the year-earlier period. The gross profit margin decreased from 11.7 percent in the third quarter of 2009 to 10.0 percent in the third quarter of 2010.
Income from operations in the third quarter of 2010 was $3.8 million, representing 63.4 percent increase from $2.3 million during the same period last year. Operating margin was 6.7 percent in the third quarter of 2010 compared to 7.3% percent in the third quarter of 2009.
Nine Months ended September 30, 2010
For the nine months ended September 2010, net income rose by 41.9 percent to $6.7 million, or $0.72 per diluted share, up from $4.7 million or $0.79 per diluted share in 2009.
Revenue during the period increased by 54 percent to $131.1 million, up from $85.3 million in 2009. Retail sales as a percentage of total revenue decreased to 38.3 percent from 40.8 percent last year.
Gross profit for the first nine months of 2010 rose by 43.5 percent to $14.6 million, compared to $10.2 million in 2009.
Commenting on the results,
An Fengbin, Chairman, CEO and President of Andatee China Marine Fuel Services, said: "We are delighted with the solid business results we delivered in the third quarter 2010. During the period in September 2010, we have achieved a major milestone by signing agreements with Haiyu Fishery Limited Corporation and Jinghai Group to supply marine fuel, on an exclusive basis, for a period of 10 years. We also acquired a 52 percent stake in Mashan Xingyuan and Hailong Petrochemical Co., Ltd. respectively. As a result, we have expanded our footprint into Tianjin market, which is the largest port cities in China.
"In addition, we have expanded our business in the markets in southern China by finding more reliable distributors of 1# marine fuel products," Mr An added.
Business Outlook
Andatee said sea freight shipping activities at Chinese ports had remained relatively strong, thus driving steady growth in the marine bunkering industry in China.
Fishing activities continued to pick up during the third quarter of 2010 due to the peak season and increasing demand from the fishing industry.
"Andatee believes its success in implementing its business strategies to explore increasing market opportunities for retail sales, to acquire and upgrade retail facilities to reduce risk of fluctuation of crude oil prices, and to build retail points in strategic locations to capture market growth continue to strengthen the company's market position in the marine fuel services industry in China," the company said.
"Given the highly fragmented nature of the marine fuel industry for fishing and smaller vessels, we are committed in our effort to expand our geographic footprint to capture market share and build our "Xingyuan" brand. During the third quarter, we intensified our marketing efforts of 1# marine fuel products by finding more reliable distributors in Southern China, who could distribute 1# marine fuels products in large numbers." said Mr. An.
"We believe that a solid foundation for our marine fuel business will be established step by step along with development of more value-added products as well as exploration into more high margin strategic positions," Mr An added.
