On February 22, Chinese coal and coke producer SinoCoking Coal and Coke Chemical Industries Inc. (SinoCoking) issued its financial results for the second fiscal quarter and first fiscal half ended on December 31, stating that the results were positively affected by higher prices of coke and coal products largely driven by the coal supply shortage. According to the financial results, sales revenues of $16.75 million in the second fiscal quarter compared with $14.76 million in the previous corresponding fiscal quarter. Revenues of $29.75 million in the first fiscal half compare with $32.89 million in the previous first fiscal half.
Including the change in fair value of warrants, the company reported a net loss of $6.99 million for the three months ended December 31, 2010, as compared to net income of $4.74 million a year ago, while its reported a net income of $8.49 million for the six months ended December 31, 2010, compared to $11.28 million in the corresponding six months of the previous year.
SinoCoking chairman and CEO Jianhua Lv commented, "The 13 percent increase in revenues (in the quarter) was achieved despite the decrease in total metric tons produced and sold for both coal and coke products."
"The construction of our new coking facility is moving ahead and, at completion, is expected to increase our capacity by 900,000 mt annually (to a total of 1.1 million metric tons annually) and to enhance our margins," the company noted.