China Bio Energy Holdings
CBEH is a distributor of refined oil products including gasoline, diesel, and heavy oil, and a manufacturer and distributor of bio-diesel fuel. CBEH's bio-diesel fuel is made at its 100,000-ton capacity facility in Shaanxi Province. Feedstock consists of naturally growing non-edible seeds and waste oil from restaurants. CBEH's bio-diesel can be used as a complete substitute for petro-diesel or can be blended with petro-diesel. The Company's products are sold via its own distribution network, which includes six retail gas stations in Shaanxi Province that have both road and rail access.
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CBEH announces Q2 rise in gas station and oil distribution revenue, plans to expand biodiesel capacity
China Bio Energy announced a revenue increase of 11.6 percent on its second quarter revenue from the same period last year to US$65.2m. Gross profit also rose by 10.4 percent.
The increase was mainly due to growth in the company's finished oil distribution business and sales generated by its six fully operational gas stations.
These increases were however offset by a decrease in biodiesel revenues due to lower selling prices compared to the same period in 2008, despite a distribution volume increase of 56.4 percent.
Retail Gas Stations revenue increased 77.8 percent, although still only accounted 12 percent of total revenue. Distribution of Finished Oil revenues lifted 21.4 percent, representing 70 percent of revenue, while Bio-Diesel sales dropped by 28.5 percent.
The cost of sales for the second quarter of 2009 increased 12 percent due to lower selling prices compared to the same period in 2008.
The company aims to use its licenses and distribution footprint to tap into China's increasing demand for commercial and passenger vehicles and shortage of domestic oil resources.
It plans to expand bio-diesel production capacity of 100,000 tons to 150,000 tons, either through strategic acquisitions or through a new build-out in 2009 and anticipates US$15 million in capital expenditures in 2009 to do so.
