Asia/Pacific News
Q2 Net Loss for Chinese Bunker Supplier
Chinese bunker supplier Andatee China Marine Fuel Services Corp. [NASDAQ:AMCF] (Andatee) reports a net loss of $135,673 in the second quarter of 2013, compared with a profit of $133,942 in the same period last year.
The company's revenues rose almost 10 percent to $75.8 million year-over-year, and gross profit was up 44 percent to $3.9 million, but a 58 percent increase in operating expenses, to $2.8 million, hurt the bottom line.
Andatee, which produces, stores, distributes, and trades blended marine fuel oil (MFO) for cargo and fishing vessels in China, increased its overall sales volume by 12.8 percent to 83,896 tonnes.
In particular, it reported increased demand for 180 cst and #4 blended fuel oil.
In Q2, 180 cst fuel oil rose to 19.4 percent of the company's sales, up from 11.4 percent year-over-year, while #4 fuel oil represented 47.5 percent of sales, down from 64.7 percent.
Looking forward, the company said it expects economic and population growth in China to drive increased demand for fuel oil, and it said it will make capital improvements in its production facilities and invest in its supply networks.
Andatee said it also plans to increase its share of retail sales, acquire its own retail facilities, build retail points in strategic locations, and add new products to "further satisfy customers' diversifying demands."
The company said late last year that it hit setbacks in its performance due to a failed plan to privatise the company and the general slow-down in the Chinese economy.
