Click here to close now.




















Welcome!

News Feed Item

Hanwei Energy Services Reports Third Quarter Fiscal 2014 Financial and Operational Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/11/14 -- Hanwei Energy Services Corp. (TSX: HE) ("Hanwei" or the "Company"), today reported its financial results for the quarter ended December 31, 2013 (the "Reporting Period"). All amounts are in Canadian Dollars unless otherwise noted.

Financial Summary

For the three months ended December 31, 2013:


--  Revenues were $3.4 million, representing a decrease of 61% as compared
    to revenues of $8.6 million for the same period of the prior year. This
    decrease was primarily due to a reduction in demand from the Company's
    major Chinese and Kazakhstan customers and increased competition from
    other suppliers.

--  EBITDA from continuing operations for the three months ended December
    31, 2013 was negative $367,000 as compared to EBITDA from continuing
    operations of $654,000 for the same period of the prior year,
    representing a decline of 156%. The decline in EBITDA was primarily
    driven by the decline in revenues.

For the nine months ended December 31, 2013:


--  Revenues were $11.0 million, representing a decline of 50% as compared
    to revenues of $21.8 million for the same period of the prior year. This
    decrease was primarily due to a reduction in demand from the Company's
    major Chinese and Kazakhstan customers and increased competition from
    other suppliers.

--  EBITDA from continuing operations for the nine months ended December 31,
    2013 was negative $659,000 as compared to EBITDA from continuing
    operations of $2.7 million for the same period of the prior year. The
    decline in EBITDA was primarily driven by the decline in sales.

The Company had basic and diluted loss per share of $0.01 and nil for the three and nine months ended December 31, 2013 as compared to basic and diluted earnings per share of nil for the three months ended December 31, 2012 and $0.01 for the nine months ended December 31, 2012.

As of January 31, 2014, FRP pipe sales orders yet to be completed and shipped were approximately $6.2 million (the majority of which are expected to be completed within the fiscal year ended March 31, 2014).

Cash balance was $4.7 million as at December 31, 2013, representing an increase of $2.3 million from a cash balance of $2.4 million as of September 30, 2013.

Update on Corporate Strategy

Hanwei's core business remains in its FRP pipe manufacturing. The Company holds longstanding relationships with the leading Chinese oil & gas producers that include CNPC, PetroChina and Sinopec (and which have yielded repeat orders over the last ten years). The Company has also been previously successful in its sales efforts in Kazakhstan, a market in which it entered in 2009. Internationally the Company has undertaken a number of initiatives to expand out its sales in other markets and while initial orders have been received principally in the Middle East the sales results of entering new international markets have not yet materialized.

While the Company continues its efforts to drive sales it has seen a softening in its two principal markets of China and Kazakhstan with year over year sales reducing. This has primarily been due to less FRP products being ordered by end users in these markets as well as increased competition from other manufacturers. The Company will continue its sales and marketing efforts in the international markets but it is yet unknown if future sales results in these markets will be achieved and can restore or grow revenue.

Due to the downturn in the China and Kazakhstan FRP markets the Company is therefore actively investigating other corporate development opportunities focussed on restoring revenue including licensing of Hanwei's FRP manufacturing technologies, new sales and distribution arrangements, and other initiatives.

Update on Major Cash Receivables


--  Outstanding Wind Receivable: During the three-month period ended
    December 31, 2013, the Company received a payment of $0.9 million (RMB5
    million) as part of the outstanding accounts receivable due from its
    wind farm customers. The full amount of these receivables was previously
    allowed for and the Company's wind power business has been discontinued.
    As of the date of this MD&A approximately $32.7 million (RMB194.2
    million) has been collected with a balance of $5.1 million (RMB29.0
    million) outstanding. The Company is continuing its efforts to collect
    the balance of this outstanding amount.

--  Tianjin Plant Divestment: As previously reported the Company reached an
    agreement on May 27, 2013, to sell all of the equity interest in its
    wholly owned subsidiary Hanwei Green to a private Chinese company for an
    amount of $11.4 million (RMB65 million). The major asset of Hanwei Green
    is a manufacturing plant located in Tianjin, China which was constructed
    for wind blade production. The majority of the regulatory documentation
    and jurisdictional approvals required for the ownership transfer were
    completed as of (February 10, 2014). Under the current Agreement the
    Company is due to receive payments of $1.9 million (RMB11.0 million)
    upon completion of the ownership transfer documents and $3.3 million
    (RMB19.0 million) (due before December 31, 2013 under the current
    Agreement terms). Contemporaneously with the receipt of this payment the
    ownership transfer shall take effect and subject to a final payment of
    $6.1 million (RMB35.0 million) due May 27, 2014 (within twelve months
    after the agreement was signed on May 27, 2013). With the delay in
    receiving the necessary jurisdictional approvals the Company is in
    discussions with the buyer as to revisions to the timing of these
    payments that may result in a delayed payment schedule.

--  Wind Inventory Sale: During the year ended March 31, 2012, the Company
    executed a contract for sale of the majority of its wind power equipment
    inventory to a Chinese customer for agreed items totaling $15.7 million
    (RMB93.6 million). To date $12.6 million (RMB75.3 million) of this
    amount has been received by the Company. The balance to be paid is
    approximately $3.3 million (RMB18.3 million) which is expected to be
    received by the end of the Company's fiscal year ending March 31, 2014.

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, 2013. Management invites analysts and investors to participate on the conference call:



Date:               Wednesday, February 12, 2014

Time:               1:00 a.m., Eastern Time (10:00 am Pacific Time)

Dial in number:     1-888-539-3612 or 1-719-325-2464

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 pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies and services for the international oil and gas infrastructure industries. Hanwei serves major energy customers in the Chinese and global energy markets.

www.hanweienergy.com

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.

FORWARD-LOOKING INFORMATION

Certain information in this press release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions a description of which is set out in the risk factors section of the Company's Annual Information Form dated June 18, 2013 and Management Discussion and Analysis for the year ended March 31, 2013 both of which are filed with Canadian securities regulators and available on SEDAR at www.sedar.com. The forward-looking information in this press release describes the Company's expectations as of the date of this press release.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. 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.

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
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Scrum Alliance has announced the release of its 2015 State of Scrum Report. Almost 5,000 individuals and companies worldwide participated in this year's survey. Most organizations in the market today are still leading and managing under an Industrial Age model. Not only is the speed of change growing exponentially, Agile and Scrum frameworks are showing companies how to draw on the full talents and capabilities of those doing the work in order to continue innovating for success.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at @DevOpsSummit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, presented a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mocku...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Graylog, Inc., has added the capability to collect, centralize and analyze application container logs from within Docker. The Graylog logging driver for Docker addresses the challenges of extracting intelligence from within Docker containers, where most workloads are dynamic and log data is not persisted or stored. Using Graylog, DevOps and IT Ops teams can pinpoint the root cause of problems to deliver new applications faster and minimize downtime.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.