Fertilizer and chemical products manufacturer New Oriental Energy & Chemical Corp. (NOEC) Monday reported a loss for the third quarter, compared to profit in the previous year, hurt by negative margins in most of its products. Looking ahead, the company said it expects full year results to be lower than last year.
The Xinyang, China-based company's quarterly net loss was $2.13 million or $0.17 per share, compared to a profit of $2.18 million or $0.17 per share in the earlier year.
Comprehensive loss was $2.06 million, compared to comprehensive income of $2.56 million a year earlier.
Revenues for the quarter plunged 47.37% to $10.61 million from $20.17 million in the same quarter last year. Loss from operations was $2.28 million, in comparison with income from operations of $3.35 million a year ago.
The company noted that continuing shifts during the third quarter in raw material and specialty chemical prices produced negative margins in most of its products, which resulted in a substantial loss in the period.
Sales volume of urea during the quarter was 26,261 tons, lower than 33,478 tons sold in the third quarter last year. Average selling price was $238.22 per ton, 30% lower than the sequential second quarter.
For the nine-month period, New Oriental posted net loss of $1.86 million or $0.15 per share, compared to net income of $4.07 million or $0.32 per share last year. Revenues for the period declined to $40.53 million from $53.22 million in the preceding year.
Looking ahead, Chen Si Qiang, chief executive officer said, "We see a longer time horizon for a return to profitability, mainly due to lower energy prices. Even if we begin to see profits in urea in the fourth quarter, we anticipate the Company's full year results will be lower than last year. Previously, we have said they likely would be flat to down."
NOEC closed Friday's regular trading at $0.92 on the Nasdaq.
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