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China Biodiesel International
- BY: Andrew Hore |
- POSTED: 21/04/2008 |
Biodiesel supplier China Biodiesel International reported lower profits in 2007 but it is still paying a dividend.
It was a tough year for CBI. It was investing in new capacity at a time when the cost of its feedstock – used cooking oil – was rising. This put pressure on margins which was partly offset by the sale of higher margin products.
Revenues increased 23% to RMB124.6m while production rose 14% to 26,095 tonnes. Pre-tax profits slid from RMB38.8m to RMB16.8m. The second half profit was slightly higher than the first half profit. This was a higher proportion of biodiesel was sold for chemical uses rather than as a vehicle fuel, where prices are subject to government control. This year the majority of revenues are coming from biodiesel for chemical uses.
CBI is paying a final dividend but it is much lower than last year. It is being cut from RMB0.0816 to RMB0.0365
The new Longyan plant, which has a capacity of 30,000 tonnes of biodiesel a year, was up and running last August. This has improved production efficiency. The Xiamen plant, whose capacity will be 50,000 tonnes a year, is about to start trial production. Capital expenditure was RMB90.7m during the year.
Net cash, after other financial liabilities, was RMB3.85m. This was more than RMB58m lower than at the end of 2006 because of the capital spending.
The shares recovered 0.5p to 15.5p.
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