By ANGELA TAN
Urea producer, China XLX Fertiliser Ltd, reported on Thursday that its net profit for the second quarter to June 30, 2010 rose 8 per cent to RMB22.81 million (US$3.36 million).
Revenue grew 15 per cent to RMB626.90 million.
'This was mainly due to increase in average selling price for methanol by approximately 16 per cent and decline in average cost of sales for methanol and compound fertiliser by approximately 10 per cent and 7 per cent respectively,' the company said.
The increase in profit was however capped by the increase in maintenance costs as all its three production plants shutdown for maintenance purposes unlike a year ago when only one plant was down.
The company optimistic over the prospects for 2010.
'Our Directors are also hopeful over the strong agricultural government policies such as subsidies to farmers which should support the long term development in the fertiliser industry,' it said.
Like the previous year, no dividend has been declared or recommended.
