China Clean Energy turns profitable in Q3 2010

(ADPnews) - Nov 16, 2010 - China Clean Energy (OTC:CCGY) swung to a net profit of USD 1.8 million (EUR 1.3m) in the third quarter of 2010 from a USD-700,000 loss a year earlier and said it expects results to continue to improve in the fourth quarter.

The better performance came as a result of a rise in volumes and improved margins, said the company, which makes biodiesel and specialty chemical products from renewable resources. It announced it will continue with its plan to list its stock in the US.

Adjusted profit grew to USD 2.2 million from USD 300,000.

Operating profit for the third quarter was USD 3.2 million, up 1,046% on the year.

The gross margin stood at 23.2%, up from 19.3%, driven by a higher-margin product mix and increased average selling prices for specialty chemicals and biodiesel.

Revenue for the period rose by 300% year-on-year to USD 16 million. Specialty chemicals brought 86% of the figure, with the rest coming from biodiesel sales. The company sold 8,935 tonnes of specialty chemicals, up by 233% in annual terms, and 3,213 tonnes of biodiesel, up by 320%.

China Clean Energy announced it expects an operating profit of USD 3.5 million in the closing quarter of 2010 and a revenue of USD 17.3 million, up by 253% on the year. Full-year operating profit is seen to reach USD 9.9 million, with a revenue of USD 58.1 million.

For the nine months through September, net profit amounted to USD 4.1 million, against a net loss of USD 1 million a year back. Revenues rose by 270% in annual terms to USD 40.8 million.

(USD 1.0 = EUR 0.734)

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