Switch from Retail to Wholesale Gives Chinese Supplier Boost in Bunker Volumes, Share Price

Shares in NASDAQ listed Andatee China Marine Fuel's shares jumped 53% on Friday.

Andatee China Marine Fuel Services Corp. [NASDAQ:AMCF] (Andatee) today in its Second Quarter 2014 Financial Results attributed a huge swing in net income to a shift in strategy from retail to wholesale fuel oil sales, resulting in an increase in bunker sales volume.

The NASDAQ listed bunker company said net income increased year-on-year by 3,767.40 percent to $2.9 million, from a net loss of $79,414 for Q2 2013, while gross profit for the period increased by 131.73 percent to $9.15 million from $3.95 million in Q2 2013.

"We had a great quarter as we delivered strong top and bottom line results," commented Wang Hao, Chairman and Chief Executive Officer of Andatee China Marine Fuel Services Corporation.

"We have recently shifted our strategy from retail sales of fuel oil to wholesale sales of fuel oil to large wholesalers located at extended geographic markets, such as in Shanghai and Zhejiang Province, resulting in a net income of $2.9 million.

"During the quarter, we also diversified our business line by acquiring Qingdao Grand New Energy Co., Ltd., a technology company which has proprietary clean energy technologies and solutions.

"Going forward, we will continue to adjust our strategy to improve our financial performance and maintain sustainable growth in 2014 and beyond."

Wall Street responded positively to the news, with shares closing up 53.71 percent ($0.94) to a 52-week high of $2.69, and traded as high as $3.38 after 1.47 million shares changed hands, dwarfing the average volume of 38,664.

Earlier this year Andatee China Marine Fuel said in 2013 it increased its sales volume by 30.6 percent to 387,369 tonnes.