Biodiesel maker China clean energy slips into red

Slackening demand caused by the global economic slowdown and rapid decline in crude oil prices pushed Chinese biodiesel producer China Clean Energy Inc. (CCE) into the red in the fourth quarter ended December 31, 2008. U.S.-listed CCE said in its latest financial results that it registered a net loss of US$600,000 in the fourth quarter, while revenue during this period settled at US$4.1 million, down 40.4% from the corresponding quarter last year. Total revenue for the 2008 fiscal year was down 16.5% on year at US$18.2 million, while net profit came in at US$600,000 for 2008, down 82.3% on year. “Our results for the quarter and the full year have been adversely impacted by the global economic crisis as prices for our specialty chemical and biodiesel products fell faster than our raw material costs,” said Tai-ming Ou, CCE’s Chairman and Chief Executive Officer. The decrease in net revenue in 2008 was due to lower sales volume particularly in the second half of the year, primarily driven by declining demand for specialty chemical products as well as a significant decrease in biodiesel production compared to fiscal year 2007. (March 31, 2009)