New Oriental Energy & Chemical Corp. inks sales contracts for $7.5M
New Oriental Energy & Chemical Corp. (Nasdaq: NOEC), a specialty chemical and emerging alternative fuel manufacturer, said this morning that it signed several fertilizer sales contracts for urea and ammonium bicarbonate totaling $7.5 million. Separately, the Chinese company said it signed supply agreements guaranteeing its winter coal supply with contracts totaling $4 million for deliveries beginning Dec. 1.
Four of the new sales contracts are for an aggregate of 26,815 tons of urea, the company's largest fertilizer product, for a total of $6.3 million, and represents an estimated 85% of the company's expected fiscal third-quarter urea output.
New Oriental Energy said the average selling price under these contracts was approximately $238 per ton and that it anticipates a gross margin on these sales of more than 18%.
Shares of New Oriental (NOEC) jumped 16.5%, or $0.85, to $6 in pre-market trading. Energy Shares of New Oriental Energy have been trading in the range of $2.93 to $10.10 for the past 52 weeks.
