Welcome!

News Feed Item

Hanwei Energy Services Reports Third Quarter Fiscal 2013 Financial and Operational Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/07/13 -- Hanwei Energy Services Corp. (TSX:HE) -


--  Revenue increases 87% to $8.6 million for the three-month period 
--  EBITDA increases 580% to $2.7 million for the nine-month period 
--  Confirmed pipe orders to be completed approximately $9.8 million 

Hanwei Energy Services Corp. ("Hanwei" or the "Company") today reported its financial results for the quarter ended December 31, 2012 (the "Reporting Period"). All amounts are in Canadian Dollars unless otherwise noted.

Financial Highlights

For the three months ended December 31, 2012:


--  Revenues were $8.6 million, representing an increase of $4.0 million (or
    an 87% improvement) as compared to $4.6 million for the same period of
    the prior year. 
--  Gross profit was $3.0 million, representing an increase of $1.4 million
    (or an 88% improvement) as compared to $1.6 million for the same period
    of 2011. Gross margin as a percentage of sales was 35.4% as compared to
    35.1% for the same period of the prior year. The Company aims to
    maintain a minimum gross profit margin of not less than 30% on an
    annualized basis. 
--  EBITDA from continuing operations was $0.7 million, representing an
    increase of $0.6 million (or a 633% improvement) as compared to $0.1
    million for the same period of the prior year. 
--  Earnings per share was $0.00 as compared to a loss per share of $0.01
    for the same period of the prior year. 

For the nine months ended December 31, 2012:


--  Revenues were $21.8 million, representing an increase of $0.9 million
    (or a 4% improvement) as compared to $20.9 million for the same period
    of the prior year. 
--  Gross profit was $7.7 million representing an increase of $1.2 million
    (or an 18% improvement) as compared to $6.5 million for the same period
    of the prior year. Gross margin as a percentage of sales was 35.6% as
    compared to 31.2% for the same period of the prior year. 
--  EBITDA from continuing operations was $2.7 million, representing a $2.3
    million increase (or a 580% improvement) as compared to EBITDA from
    continuing operations of $0.4 million for the same period of the prior
    year. 
--  Earnings per share was $0.01 as compared to a loss per share of $0.05
    for the same period of the prior year, or an improvement of $0.06 per
    share. 

Bank debt as of December 31, 2012 was $16.8 million versus $24.5 million as of December 31, 2011 and $21.2 million as of September 30, 2012.

Operational Highlights

The aforementioned financial highlights indicate significant improvements across the Company's key operating metrics. The Company remains focused on increasing sales, stringent management of costs, and continued commitment to manufacturing processes and quality assurance, to drive profitability. Operational highlights in this regard are as follows:


--  The Company continues to actively pursue sales across various
    international markets. 
    --  Of the $21.8 million of revenues recognized for the nine months
        ended December 31, 2012 approximately $10.5 million was to the
        Company's Chinese market and $11.3 million to international markets
        respectively representing 48% and 52% of total sales. 
    --  This geographic mix of revenue with increases in international
        orders has offset any current reductions in China sales. The
        Company's aforementioned $10.5 million in China sales represents a
        $7.4 million reduction in this market from the same period of the
        prior year as an outcome of a decrease in demand from major Chinese
        customers and increased competition from other Chinese GRE pipe and
        alternative product suppliers. However, the aforementioned
        international sales of $11.3 million have provided a comparatively
        greater increase of $8.3 million from international sales of $3.0
        million in the same period of the prior year. 
    --  The Company's international sales include completed orders to
        clients in Kazakhstan of approximately $10 million, representing an
        increase in this particular market of $6.5 million or 185% for the
        nine months ended December 31, 2012 (as compared to revenues from
        this market of $3.5 million for the same period of the prior year).
        The increase in Kazakhstan was due to successful project references
        on previous pipe installations providing continued confidence to
        both new and existing clients in this market. 
    --  In addition to the $21.8 million of revenues noted above, the
        Company has confirmed pipe orders of approximately $9.8 million as
        of the date of this press release. 
--  The Company continues to stringently manage its costs and expenses. 
    --  While revenue for the nine months ended December 31, 2012 grew to
        $21.8 million from $20.9 million for the same period of the prior
        year, the Company's cost of revenues reduced to $14.02 million from
        $14.4 million for the comparative period. 
    --  General and administrative expenses for the nine months ended
        December 31, 2012 were $3.6 million as compared to $4.4 million for
        the same period of 2011. The $0.8 million reduction was primarily
        driven by reductions in employee costs, professional service fees
        and office rent. 
--  The Company continues to manage its debt facilities. Subsequent to the
    quarter end, the Company has repaid a short term loan of Renminbi
    ("Rmb")8 million ($1.3 million) due to mature on February 27, 2013 and
    obtained a new Rmb9.3 million ($1.5 million) loan that matures on May
    14, 2013 and bears interest of 5.6% per annum. In addition the Company
    has also renewed a short-term loan of Rmb30 million ($4.8 million) due
    to mature on March 18, 2013 and the loan matures on January 21, 2014 and
    bears interest of 8.4% per annum. 

Graham Kwan, Executive Vice President and Rick Huang, Chief Financial Officer of Hanwei will host a conference call to discuss its operational and financial results for the quarter ended December 31, 2012. Management invites analysts and investors to participate on the conference call:

Date: Thursday, February 7, 2013

Time: 1:00 p.m., Eastern Time

Dial in number: 1-888-364-3109 or 1-719-325-2469

A replay of the conference call will be available on the Company's website www.hanweienergy.com.

About Hanwei Energy Services Corp.

Hanwei Energy Services Corp. is a leading manufacturer of high and low pressure, fiberglass reinforced plastic pipe products and associated technologies and services for the international oil and gas, and infrastructure industries. Hanwei serves major energy customers in the Chinese and global energy markets.

FORWARD-LOOKING INFORMATION

The forward-looking information in this press release presents the Company's expectations as of the date of this press release and accordingly is subject to change after such date. Readers are cautioned that reference to "orders" hereto are not recognized under IFRS and should not be construed to be indicators of performance or purported to be an alternative to sales or any other financial measures under IFRS. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company does not undertake to update this information at any particular time, except as required by applicable securities legislation.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.