Asia/Pacific News
Volumes, Revenues More than Halve for Chinese Bunker Supplier
Revenues for Chinese fuel services company Andatee China Marine Fuel Services Corporation [NASDAQ:AMCF] (Andatee) plunged 52 percent year-over-year to $31.5 million in the quarter ended September 30, 2012 as demand fell in a shrinking Chinese economy, the company reports.
The company had a net loss of $3 million for the quarter, compared with a profit of $2.3 million in Q3 2011.
Andatee, which provides blended marine fuel oil for cargo and fishing vessels in China, said its sales volume fell from 90,134 tonnes for Q3 2011 to 39,533 tonnes in the most recent quarter.
"The reduction in our sales volume was primarily due to the overall slow-down of the Chinese economy which had an adverse impact on the demand for fishing and cargo vessel fuel," the company said.
In addition, Andatee said it did not initiate any sales promotions during the third quarter of 2012 due to a failed plan to privatise the company.
It said "strong competition from other fueling companies" also forced it to reduce the selling price of its #3 fuel from RMB 5,072 ($814) per tonne in Q3 2011 to RMB 4,286 ($688) per tonne in Q3 2012.
Andatee said it is taking a number of steps to expand its operations, opening sales and marketing facilities at new port locations, making improvements to existing facilities, and acquiring local companies.
The company plans to open an expanded warf and tank storage facility and a new blending facility in Rongcheng City, Shandong Province by the end of the year.
It said it is also setting up market developing offices in large cities like Shanghai to pursue new acquisitions.
Andatee recently announced the resignation of its CFO.
