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China Natural Gas Inc. Reports Operating Results (10-Q/A)

August 20, 2010 | About:
10qk

10qk

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China Natural Gas Inc. (CHNG) filed Amended Quarterly Report for the period ended 2010-03-31.

China Natural Gas Inc. has a market cap of $118.9 million; its shares were traded at around $5.61 with a P/E ratio of 5.1 and P/S ratio of 1.5.

Highlight of Business Operations:

Natural Gas from Fueling Stations . Natural gas revenue from our fueling stations increased by 2.6% or $371,685, to $14,629,610 during the three months ended March 31, 2010, from $14,257,925 during the three months ended March 31, 2009, and contributed to 75.5% of our total revenue, which was the largest among our four major business lines. During the three months ended March 31, 2010, we sold 40,592,457 cubic meters of compressed natural gas, compared to 39,294,120 cubic meters during the three months ended March 31, 2009 through our fueling stations. In terms of average station sales value and volume, in the three months ended March 31, 2010, we sold approximately $406,378 and 1,127,568 cubic meters of compressed natural gas per station, compared to approximately $407,916 and 1,122,689 cubic meters in the three months ended March 31, 2009. Unit selling price remained stable at $0.34 (RMB2.34) and $0.42 (RMB2.83) net of VAT in Shaanxi and Henan province, respectively, or $0.37 (RMB 2.5) on an average basis.

Gasoline . Revenue from gasoline sales increased by 25.1 %, or $294,418, to $1,468,816 during the three months ended March 31, 2010, from $1,174,398 during the three months ended March 31, 2009, and contributed 7.6% to our total revenue. The gasoline revenue increase was due to 41.9% increase of unit sales price from $ 0.54 (RMB3.69) per liter in the three months ended March 31, 2009 to $0.77 (RMB 5.23) per liter in the three months ended March 31, 2010, mainly attributable to the increase of international oil price, partially offset by the sales volume decrease of 11.9% from 2,171,232 liters to 1,929,034 liters.

Auto Conversion Services . Revenue from our auto conversion division decreased by 16.4%, or $79,810,to $406,604 during the three months ended March 31, 2010, from $486,414 during the three months ended March 31, 2009, and contributed 2.1% to our total revenue.

Natural Gas from Fueling Stations . Cost of revenue of our natural gas for our fueling stations increased by 16.5%, or $1,027,695, to $7,272,136 during the three months ended March 31, 2010, as compared to $6,244,441 for the three months ended March 31, 2009. Procurement price for natural gas remained stable at $0.16 (RMB 1.12) in Shaanxi since 2008. In Henan Province, the Company also uses coal bed methane (‘CBM ) as an alternative in addition to natural gas to supply its fueling station, as a result the average cost of fueling station revenue in Henan decreased from $0.22 (RMB 1.55) to $0.14 (RMB 1.0) in July 2008. But due to the uncertainty involved in the production capacity of CBM as a byproduct of coal mines as well as increasing demand, average cost of fueling station revenue in Henan increased to $0.19 (RMB 1.30) in June 2009 and $0.22 (RMB 1.49) in January 2010. The cost, however, is still significantly below the retail price at $0.42 (RMB2.83) in Henan Province.

Gasoline . Cost of our gasoline revenue increased by 21.0%, to $1,367,278 during the three months ended March 31, 2010, from $1,130,057 for the three months ended March 31, 2009. The increase of cost of gasoline revenue was due to the effect of the increase of average unit cost from $0.52 (RMB 3.55) per liter during the three months ended March 31, 2009 to $0.71 (RMB 4.87) per liter during the three months ended March 31, 2010 mainly attributable to the increase of international oil price, partially offset by the decrease in sales volume.

Auto Conversion Services . Cost of our auto conversion revenue decreased by 17.8%, or $52,296, to $241,869 during the three months ended March 31, 2010, as compared to $294,165 during the three months ended March 31, 2009.

Read the The complete Report

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10qk
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