Sino Gas International Holdings Inc. today announced its financial results for the six months ended June 30, 2010, reporting overall positive numbers.
Revenue for the first half of 2010 was $12.87 million, up 4.08 percent as compared to $12.36 million in the six months of 2009.
Gross profit for the first six months of 2010 increased 43.95 percent to $4.03 million as compared to the $2.80 million reported in the first half of 2009. The company attributes the increase in gross profit to the increase of connection fees, which have a higher gross margin, and improvement of gross margin from both connection fee revenue and gas sales.
The company reported that gross margin for the first six months of 2010 was 31.30 percent compared to 22.64 percent in the first six months of 2009.
Sino’s operating income for the first six months of 2010 increased 62.66 percent to $1.84 million compared to $1.13 million for the same period of 2009. However, the company said the increase in operating income was negated by the additions of non-cash flow non-operational amortization expense of convertible bonds.
Net loss for the first half of 2010 was $0.35 million, compared with net income of $0.77 million for the same period of 2009.
As of June 30, 2010, Sino Gas had $6.36 million in cash and cash equivalents and stockholders’ equity was $63.19 million. The company said it has $2.94 million in short-term bank loans, $8.81 million in long-term bank loans, and $5.54 million convertible bonds as of June 30, 2010.
Yu-Chuan Liu, chairman and CEO of Sino Gas, said the six-month results reflect the company’s steadily improving numbers as it grows its customer base and acknowledges stronger demand for natural gas.
“The company’s continually improving operating results demonstrate the growth that we continue to experience through the leveraging of our 1040 km infrastructure pipelines by successfully adding to our customer base. We see the continued strong demand for natural gas in China and the Government’s strong support of urbanization and clean energy promotion. We will continue to be opportunistic in terms of expanding our already major presence in small and medium-sized cities in China both through the growth of our network and in pursuing new business opportunities,” Liu stated.
Company CFO Yugang Zhang said the company its taking measures to communicate with its investors and plans on participating in at a growth conference next month.
“Our continued success in adding to our imbedded customer base and our improved operating results are indicative of the continued strong trends being experienced in China in urbanization, rise in income levels, and promotion of clean energy. We will actively ensure that the Sino Gas story is conveyed to the investor market by continuing our participation at major financial conferences and other investor relations activities, including the Rodman and Renshaw Growth Conference taking place in September, 2010.”
For more information visit www.sino-gas.com