R H Energy swings back to black in 3Q with $1.5m net income

Mainboard-listed R H Energy reported today net income from continuing operations was US$1.2 million ($1.5 million) for the quarter ended 30 September 2011 (3Q2011), compared to net loss from continuing operations of US$658,000 for the third quarter of 2010 (3Q2010).

For the quarter ended 30 September 2011, group revenue grew 93% to US$12.5 million, up from US$6.5 million, following a surge from equipment integration services segment due to the progressive delivery of the emergency shutdown valve system for the Changqing Gas Field to Hohhot Gas Pipeline project.

Wang Hairong, R H Energy’s Executive Chairman and CEO, says: “The outlook remains uncertain given the slowdown in the global economy and volatility in the financial markets. With the continued tight monetary policy stance by the Chinese Central Bank, the Group faces certain challenges in China, particularly in terms of tighter cashflow and increased financial costs.”