China’s Guizhou Chitianhua H1 net profit falls 49% on poor demand

27 August 2013 04:30  [Source: ICIS news]

SINGAPORE (ICIS)--Chinese fertilizer producer Guizhou Chitianhua said on Tuesday that its net profit dropped by 49% year on year to yuan (CNY) 27.9m ($4.6m) in the first half of 2013, because of sluggish demand amid the economic growth slowdown.

The company ascribed the decrease in the first-half net profit to falling urea prices amid the poor fertilizer market, along with the weak methanol market.

Furthermore, the government raised the natural gas prices effective from 10 July 2013, which further squeezed the company's margin, Guizhou Chitianhua said in a statement to the Shanghai Stock Exchange.

During the first half of the year, the company produced 566,800 tonnes of urea and 133,500 tonnes of methanol. It sold 535,600 tonnes and 129,500 tonnes of the two products respectively in the same period, the company added.

($1 = CNY6.12)

By: Viola Pan
+65 6780 4359

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