China Biodiesel H1 net up 151% on Longyan plant

11 September 2006 11:26  [Source: ICIS news]

SINGAPORE (ICIS news)--China Biodiesel International (CBI) Holding said on Monday its first half net profit soared 151% to CNY15.9m ($2m/€1.6m) from the same period the previous year, boosted by its Longyan plant.

 

The plant became fully operational in March 2005, so the first half of that year did not see the full benefit of its output.

 

Total revenue grew 104% to CNY45.7m in the first half, and CBI said it expects a similar result in 2007 as a second Longyan plant is on target to start full-scale production by the end of 2006.

 

The second plant is expected to increase capacity from 20,000 to 50,000 tonnes/year, the company said.

 

Gross profit margin in the first half rose to 36.3% compared to 33 percent in 2005, due in part to the rise in the price of diesel fuel, offsetting an increase of approximately 5% in production costs.

 

The operating margin rose to 34% from 30% during the same period last year, reflecting the growth of the company’s business.

 

Improved environmental awareness and a rise in fossil fuel prices have led to increased demand for biodiesel, said the company in a statement.

 

Moving forward, CBI is focused on stabilising supply and demand through long-term contracts and exploiting the increasing environmental awareness and government interest in biodiesel.

By: Jeanne Lim
+65 6780 4359

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