SCOK up sharply in premarket (+.70 to 3.56) on news that the SYNGAS project is now producing at full initial capacity. It adds roughly $7.5M in quarterly revenue at hefty 45%+ profit margins.
I figured that SCOK would be good for at least a swing trade !
PINGDINGSHAN, China, Nov. 25, 2014 (GLOBE NEWSWIRE) -- SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq:SCOK), a producer of clean energy products located in Henan Province, today announced that its aboveground facility for the conversion of carbon dioxide into clean-burning syngas has achieved its initial production target of 25,000 cubic meters per hour and is currently transporting syngas to three customers and agents in and around its facility in Pingdingshan.
Based on the current price of $0.139 per cubic meter for syngas, the gross revenue generated per day by the aboveground facility is approximately $83,280. Gross profit margin is expected to be between 45% and 50%.
SCOK's initial customers are Zhongshi Energy Co. Ltd., Henan Zhonghong Coal Chemical Industry Co., Ltd. and Baofeng County Bourui Technology Co., Ltd.
"We are pleased with the timely and successful start-up of what we believe is one of China's first aboveground syngas facilities that can recycle carbon dioxide output to produce usable chemical compounds," said SinoCoking Chairman and CEO Mr. Jianhua Lv. "As a result, SCOK now offers a clean energy alternative to both industrial and individual customers in our area, We are now preparing to start the next phase of construction at the facility that will further expand our capacity, and we expect to produce an additional 25,000 cubic meters per hour by the end of the first quarter of 2015."
Mr. Lv further noted that while, initially, gas produced at the facility is directly transferred to customers via pipelines, the company is now working on introducing gas compression and refining technology into the syngas production process so that the end product can be stored in tanks and sold to customers as Compressed Natural Gas (CNG). As a clean-burning fuel, syngas is increasingly utilized as a clean-energy alternative to burning coal. Comprised primarily of hydrogen and carbon monoxide, syngas can also be used to produce a wide range of industrial products such as fertilizers, solvents, Liquid Natural Gas (LNG), CNG, and assorted synthetic materials.
According to the company, the new facility is one of the few in China that can produce 25,000 cubic meters of syngas per hour. Moreover, the company believes its new aboveground facility is the only one in China that combines coking and syngas.
