31st Mar 2015 10:13
LONDON (Alliance News) - China New Energy Ltd Tuesday said the fall in the oil price has caused some delays to contracts but it expects the negative impact to be mitigated.
The company, which provides engineering and technical services to the bioenergy sector, said the fall in the oil price has had a negative impact on the demand for biofuel and biorefineries.
But, while this has caused some delays to orders in the sector, the company said its projects are broadly proceeding as planned. It said the view of its customers is that energy security and job creation are as important market drivers as the fall in the oil price, which has helped to mitigate the impact of the oil price decline on the company's project pipeline.
"The unstable oil price has created challenges for the bioenergy market, but whilst this has caused some delays, our clients are confident that their projects are proceeding because of the positive job creation and energy security benefits they deliver to their countries," said Chairman Ivy Xu.
Shares in the company were up 37% to 1.339 pence on Tuesday, one of the best performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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