Sterling Biofuels records $2.7m loss

West Perth-based Sterling Biofuels International has recorded a $2.7 million loss for the 2010 financial year.

This compares to a loss of $5 million for the previous corresponding period.

The result was on revenue of $111,000.

In its 2010 annual report, Sterling Biofuels said, "there was no biodiesel operation due to the economics of production."

"To produce would have incurred operating losses due to the negative margins on biodiesel," the company said.

"However, the Group continued with the plantation development in its plantation concession," the company said.

"Whilst planting-up was done on a modest scale, the financial model through a Grower Scheme was developed for implementation."

Over the 2010 financial year the company's share capital remained unchanged at $32.1 million.

But its operating activities decreased to $1.9 million from $2.5 million as a result of cost-cutting measures.