China Natural Gas, Inc. , a leading provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi’an, China, today announced its financial and operating results for the third fiscal quarter ended September 30, 2010.
Third Quarter Fiscal 2010 Financial Highlights
* Revenues for the third quarter of fiscal year 2010 increased 10.9% year-over-year to $22.3 million, up from $20.1 million in the third quarter of 2009
* Net income for the third quarter decreased 22.9% year-over-year to $3.6 million, compared with $4.6 million for the third quarter of 2009
* Gross margin for the third quarter was 42.1% based on gross profit of $9.4 million, compared with a 48.3% margin in the same period last year
* Operating income and operating margin for the third quarter were $4.0 million and 17.9%, respectively, compared to $5.9 million and 29.3%, respectively, in the third quarter of 2009
* Earnings per diluted share were $0.17 for the quarter, compared with diluted EPS of $0.29 achieved in the same period a year ago
Nine Months Financial Highlights
* Revenues for the nine months ended September 30, 2010 increased 5.8% year-over-year to $62.8 million, up from $59.4 million in the first nine months of 2009
* Net income for the nine months decreased 4.5% year-over-year to $12.1 million, compared with $12.7 million for the first nine months of 2009
* Gross margin for the nine months was 44.7% based on gross profit of $28.1 million, compared with a 49.9% margin in the same period last year
* Operating income and operating margin for the nine months were $13.0 million and 20.7%, respectively, compared to $18.3 million and 30.8%, respectively, in the first nine months of 2009
* Earnings per diluted share were $0.56 for the nine-month period, down 34.1% compared with diluted EPS of $0.85 achieved in the same period a year ago
Mr. Qinan Ji, Chairman and CEO of China Natural Gas, stated, “We have continued to grow our market presence in the third quarter with sales growth of 10.9% year-over-year and 5.8% sequentially. While procurement cost increases in a key geographic region restrained bottom-line growth this quarter, we maintained a healthy gross margin above 40% and net margin of approximately 16%, which demonstrates the attractiveness and flexibility of our business model. We look forward to the positive effect that our new LNG plant will have as we aim to complete the test run in the coming quarter.”
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Source: China Natural Gas, Inc., November 16, 2010