Asia/Pacific News
Chinese Bunker Supplier Sees Q1 Net Profits Slide 97%
Andatee China Marine Fuel Services Corporation (Andatee) have reported a Q1 2012 net income of $71,290, a year-on-year fall of 97% from $2,308,950 in Q1 2011, figures in their form 10-Q filing show.
First quarter revenues also fell, down 11.5% to $39.2 million from $44.3 million in the same period last year, which the company said was “primarily was due to the reduced sales volume for fuel oil and petrochemical products.”
Their gross profit margin decreased to 7.9% in Q1 2012 compared to 11% in Q1 2011 primarily from a reduction in sales volume to their higher margin retail customers.
Andatee also said that hikes in crude oil prices directly impacted their production costs, however they were able to offset this in the short term by passing on all price increases to their customers.
Company costs and expenses rose by more than 50% it said, although this was largely attributed to relocation costs as they move their head office from Dalian to Shanghai.
Going Forward
Going forward, Andatee said that on-going acquisition plans for more marine fuel outlets, storage facilities, and fuel oil pump stations, formed part of the company’s rapid expansion plans to increase its presence along China’s coasts and rivers.
The company also said that population growth in China and energy conservation policies would increase demand for blended fuels in the future and that higher sales volumes and "closer ties" with customers and a "wider distribution network are at the core of our strength and business viability going forward.”
Company CEO, An Fengbin, said on Andatee’s website, “We believe our strategic focus to increase our presence in the eastern coastal cities in China supplying the underserved fishing, cargo and small vessels market will position us to becoming one of the fastest growing marine fuel alternatives suppliers in China.”
The company, which primarily supplies marine fuels along the eastern coast of China says it generates the bulk of its revenue from production, storage, distribution, and sales of their own brand of blended marine fuel products.
