China XLX Fertiliser has posted a 74.3% y-o-y rise in net profit to RMB 75.3 million ($15.1 million) for the first quarter ended March 31 (1Q2010). Revenue rose 51.8% to RMB727.6 million.

China XLX says the increase was mainly due to the increase in urea and methanol average selling prices and sales volume. Urea and methanol average selling prices increased 1.0% and 33.8% respectively.

The sales volume of urea and methanol increased by 68.8% and 149.3% respectively due to increase in production capacity as the third plant was completed in April 2009 and has begun production since then.

“Overall, our Directors are optimistic over the prospects for 2010 as compared to 2009. Our overall cost efficiency in 2010 are expected to be better than 2009 after the commencement of our third plant in April 2009 and the completion of upgrade in our first plant in February 2010. Our Directors are also hopeful over the strong agricultural government policies such as subsidies to farmers which should support the long term development in the fertiliser industry,” says China XLX.