China Natural Gas Inc. (NasdaqGM: CHNG) is one of the leading providers of pipeline natural gas for industrial, commercial and residential use and compressed natural gas for vehicular fuel in China’s Xi’an area of Shaanxi province. The Company recently released its third quarter 2009 financial results, which showed gains in total revenue and gross profit. CHNG is the first China-based natural gas company publicly traded in the United States.
China Natural Gas owns and operates approximately 120 kilometers of compressed natural gas pipeline in Xi’an, a fast-growing area supported by a population of 8.5 million and the “gateway” to the broad western regions of China. CHNG has three profitable business segments: (1) retail natural gas at company-owned natural gas fueling stations; (2) end-user delivery of natural gas services to residential, commercial and industrial customers; and (3) conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles.
The Company continues to expand its compressed natural gas fueling station network in Shanxi province through acquisition and construction, and in other provinces through joint ventures. CHNG has expanded its retail business into Henan province, China’s most populous province with a population of more than 100 million. The Company currently operates 36 retail compressed natural gas fueling stations in Shaanxi and Henan provinces.
CHNG has moved into the liquid natural gas market with the construction of a liquid natural gas processing and distribution plant in Jingbian. With completion expected in early 2010, this plant initially will have an annual processing capacity of 150 million normal cubic meters.
Financial highlights for the three months ended September 30, 2009:
- Total revenue rose 9.4% year-over-year to $20.13 million in the third quarter of 2009, from $18.40 million in the year-ago period.
- Net income totaled $4.65 million in 3Q09, compared with $5.14 million in 3Q08. EPS was $0.29 per fully diluted share in 3Q09, compared to $0.35 in 3Q08.
- Gross profit was $9.72 million in the third quarter of 2009, up 2.4% from $9.49 million in last year’s third quarter.
Disclosure: China Natural Gas, Inc. is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.