26th Jun 2015 07:22
LONDON (Alliance News) - China New Energy Ltd Friday expressed optimism for its prospects in 2015, despite challenges from the global economic climate and unstable oil price, as it posted a narrowed pretax loss for 2014.
The bioenergy engineering and technology company posted a pretax loss of CNY8.5 million for 2014, compared to a pretax loss of CNY59.2 million a year before, as revenue rose to CNY57.3 million from CNY44.4 million, mostly as a result of heavy exceptional costs in the previous year.
In 2013 the company made a CNY22.8 million provision for bad debts, and a CNY30.8 million impairment loss on investment.
China New Energy cited "signs of recovery" in the global ethanol market. The company focused on emerging markets that "benefit most from ethanol production" such as South East Asia, Eastern Europe and Africa, and attributed its growth in new contracts to this strategy.
The company reiterated its goal to commercialise technology that converts agricultural waste into fuel grade ethanol and butanol, and said that during 2014 its research and development team made "significant progress." It applied for four new invention patents, and said it now holds a total of 29 patents.
Following the year end the company acquired a 24% stake in the Visontai Bioetanol Fejleszto Korlátolt Felelosségu Társaság bioenergy project in Hungary. The completed biorefinery is expected to produce 150 million litres of bioethanol per year, and when this biorefinery is commissioned China New Energy expects to earn recurring income from sales of ethanol in 2017 and beyond.
Shares in China New Energy are trading down 4.8% at 1.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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