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IBDvalueinvestin (99.68)

Anyone know why Bromine rose 9% Q2 to Q3?

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December 03, 2009 – Comments (2) | RELATED TICKERS: DOW

The average price per Metric Ton of bromine at $1,833, up almost 9% from $1,685 per Metric Ton in the second quarter of 2009

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#1) On December 03, 2009 at 11:51 AM, IBDvalueinvestin (99.68) wrote:

Bromine is only found in 3 countries with production amounts available. USA, Israel & China:

Albemarle, Great Lakes and Dead Sea Bromine in Israel account for more than 80 percent of world bromine capacity. Albemarle operates two plants at the Magnolia site.

Albemarle is nearing the completion of a joint-venture bromines complex under construction at Safi, Jordan. The project, called Jordan Bromine Co. Ltd., is half owned by Albemarle. The JV includes a 50,000-metric-ton-per-year bromine plant, scheduled to start-up in December.

Also included are units for tetrabromobisphenol-A (TBBA) and calcium bromide. Great Lakes Chemical has three plants at El Dorado: South Plant, 125 million pounds; Central Plant, 80 million pounds; and the Newell Plant, 55 million pounds. The Newell Plant, however, is presently idled due to economic conditions in the industry. Great Lakes has another 88 million pounds of bromine capacity at Amlwch, Wales.

 

Tetra Technologies (The Woodlands, Tex.) takes all of coproduct bromine produced at Dow Chemical’s calcium and magnesium operations at Ludington, Mich. Tetra consumes this in the production of bromine derivatives.

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#2) On December 03, 2009 at 12:24 PM, IBDvalueinvestin (99.68) wrote:

GFRE is a Bromine producer:

Gulf Resources' revenue was $27.7 million for the third quarter of 2009, an increase of 57.6% from $17.6 million for the third quarter of 2008. During the third quarter of 2009, the revenue from the bromine and crude salt segment was $18.8 million, or 68.0% of total revenue, an increase of 43.6% from $13.1 million, or 74.7% for the third quarter of 2008. Revenue from bromine increased 29%, to $16.1 million from $12.45 million for the third quarter of 2008. Revenue from crude salt increased to $2.7 million from only $0.65 for the same period of last fiscal year, mainly due to the acquisition of salt pans and the improved utilization of halogen water.

Revenue from the chemical products segment was $8.9 million, or 32.0% of total revenue, for the second quarter of 2009, an increase of 99.0% from $4.4 million, or 25.3% of total revenue in the corresponding period last year. The growth in sales of chemical products was due to the expansion of production capacity, completed in September 2008, and strong demand for new environmentally friendly additive products, including solid lubricant and polyether lubricant used in oil and gas exploration.

Gross profit for the third quarter of 2009 totaled $12.1 million, up 96.8% from $6.2 million for the third quarter of 2008. For the three months ended September 30, 2009, gross profit margin was 43.9%, compared to 35.1% for the corresponding period last year. The increased gross profit margin was due to operational efficiencies as the Company grew in scale and increased sales of environmentally friendly additive products, which the Company sells at a higher unit price compared to generic oil and gas exploration additives, and crude salt, which has a lower production cost compared to bromine. Environmentally friendly additive products and crude salt had gross margins of approximately 42% and 74%, while bromine had a gross margin of 39% for the third quarter of 2009.

Research and development and general and administrative expenses for the third quarter of 2009 were $1.0 million, down 8.1% from $1.1 million a year ago due to lower consulting fees. Income from operations for the third quarter of 2009 was $11.1 million, an increase of 119.1% from $5.1 million a year ago. Operating margin was 40.3% for the third quarter of 2009, compared to 29.0% for the third quarter of 2008.

Net income was $8.3 million for the third quarter of 2009, an increase of 122.9% from $3.7 million for the third quarter of 2008. Basic and diluted earnings per share in the third quarter of fiscal year 2009 was $0.27, compared to basic and diluted earnings per share of $0.15 a year ago. Weighted average number of basic and diluted shares for the three months ended September 30, 2009 was 30,806,546, compared with 24,917,211 for the corresponding period of fiscal 2008, adjusted for a one-for-four reverse split effected October 12, 2009.

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