Emerging Chinese industrial gas company Kaimeite Gases has released its 2014 full-year results.
Operating revenue increased from RMB 232.4m ($37.3m approx.) in 2013 to RMB 261.8m ($42m approx.) last year, an increase of 12.6%.
However, operating profit dropped 39% from RMB 54.6m in 2013 to RMB 33.3m ($5.3m approx.) in 2014. Gross profit also fell 31% from RMB 70.61m in 2013 to RMB 48.6m ($7.8m approx.) in 2014.
Consequently, profit attributable to shareholders also dropped 19% from RMB 58.8m in 2013 to RMB 47.6m in 2014.
The company explains that the increase in operating revenue is because its market scale has expanded with the Anqing Kaimeite Refinery put into commercial operation. However, the dispute of its wholly-owned subsidiary Yueyang Changling Kaimeite Gas Company with the Changling branch of Sinopec regarding the raw gas supply agreement is still not resolved, leading to the drastic drop in profit.
Moreover, the capital expenditure of two of its new gas companies – both Fujian Fuyuan Kaimeite and Hainan Kaimeite are still under construction – also contribute to the fall in the profit.
gasworld China notes that Kaimeite has been temporarily suspended since 1st April (2015) because of a major issue, to be announced later.