Welcome!

News Feed Item

Hanwei Energy Services Reports Year End Fiscal 2014 Financial and Operational Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/23/14 -- Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), today reported its financial results for the year ended March 31, 2014 (the "2014 Fiscal Year"). All amounts are in Canadian Dollars unless otherwise noted.

For the year ended March 31, 2014:


--  FRP pipe sales totalled $18.0 million as compared to $30.0 million for
    the prior year. The significant decrease of $12 million (or 40%) was
    primarily due to the continued slow down in the Company's China market
    with a number of major projects by China's state owned oil companies
    placed on hold. Revenue in the Company's China market reduced to $5.4
    million from $10.7 million in the prior year. Additionally, in the
    Company's Kazakhstan market, revenue reduced to $12.2 million from $17.7
    million with increased competition from local manufacturers. Revenues
    were most significantly down in the first quarter of the 2014 Fiscal
    Year ($3.8 million as compared to $9.6 million in the same quarter of
    the prior year) and the third quarter of the 2014 Fiscal Year ($3.4
    million as compared to $8.6 million in the same quarter of the prior
    year). 
    
--  As a result of reduced revenues throughout the year, the gross margin
    for the 2014 Fiscal Year declined to $4.0 million (or 22% as a
    percentage of revenues) as compared to $9.9 million (or 33% as a
    percentage of revenues) for the prior year. EBITDA from continuing
    operations was negative $1.2 million for the year ended March 31, 2014
    as compared to $4.3 million for the prior year. The Company reduced
    operating expenses over the prior year by approximately $900,000. 
    
--  Loss from continuing operations was $2.3 million as compared to income
    from continuing operations of $2.4 million for the prior year. Basic and
    diluted loss per share from continuing operations was both $0.03 for the
    year ended March 31, 2014 as compared to basic and diluted income per
    share from continuing operations of $0.03 for the prior year. 
    
--  Net income was $0.8 million as compared to $2.4 million of the prior
    year. Basic and diluted income per share was $0.01 as compared to basic
    and diluted income per share of $0.03 for the prior year. This included
    a net foreign exchange gain for the year ended March 31, 2014 of
    approximately $3.4 million from the sale of Hanwei Green. 

For the three months ended March 31, 2014:

--  Revenue for the fourth quarter of the 2014 Fiscal Year was $7.0 million
    as compared to $7.9 million for the same period of the prior year. 
    
--  Net income was $0.8 million for the fourth quarter of the 2014 Fiscal
    Year as compared to $1.8 million for the same period of the prior year. 
    
--  Basic and diluted earnings per share was $0.02 for the fourth quarter of
    the 2014 Fiscal Year as compared to basic and diluted earnings per share
    of $0.03 for the same period of the prior year. 

The Company continues to effectively manage its debt facilities. The total principal amount of all bank loans was $5.2 million as at March 31, 2014 and amounts due to related parties (primarily a loan from a shareholder) was $3.1 million, representing a 33% debt to equity ratio (total debt including due to related party amounts divided by total shareholders' equity). For reference, the aggregate principal amount of bank loans and amounts due to related parties as at March 31, 2013 was $17.2 million.

As of March 31, 2014, the Company's cash balance was approximately $5.5 million versus approximately $4.7 million for the same date of the prior year. Also of March 31, 2014, the Company's Net Asset Value per share for its continuing operations was $0.48 (compared to $0.49 as at March 31, 2013).

Events Subsequent to the year ended March 31, 2014


--  As of May 31, 2014, FRP pipe sales orders for deliveries subsequent to
    March 31, 2014 were $2.9 million. These sales orders are expected to be
    completed within the fiscal year ending March 31, 2015. Of these sales
    orders, $0.8 million or 29% are from customers in the China market with
    $2.1 million or 71% from customers in international markets. 
--  Hanwei completed the transfer of all mineral rights and surface leases
    in June 2014 for its acquisition of certain oil and gas interests
    occupying some 4,000 acres located approximately 40 km south west of
    Edmonton, Alberta (the "Leduc Lands"). The Company has a 100% working
    interest in five wells and 60% working interest in one well. The
    Company's development program aims to enhance production in the area
    focused on the Nisku and Wabamun formations for both oil and gas
    production. The Company's current development plan is focused on: work
    over activities on an existing well to increase gas production; work
    over activities on an existing horizontal oil well to be stimulated with
    multi-stage fracturing technology; and thereafter new horizontal oil
    wells to be stimulated with multi-stage fracturing technology. New flow
    line works if required for increased production would utilize Hanwei's
    FRP pipe products. 

Update on Disposition of Hanwei Green

On May 27, 2013, the Company had reached an agreement to sell all of the equity interest in its wholly owned subsidiary Kerui Green Energy Equipment (Tianjin) Co. Ltd. ("Hanwei Green") to a private Chinese company for an amount of $11.6 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 closing of the transaction was subject to the regulatory approval of the transfer of the subsidiary's business license to reflect the new ownership. As of February 28, 2014, the transfer of the business license of Hanwei Green was completed. As at March 31, 2014, the Company received payments from this transaction of $0.7 million (RMB4 million). Due to delays in the closing of the transaction caused by the regulatory approval process, the Company is discussing with the buyer to determine a payment schedule for the remainder of the proceeds.

Update on Outstanding Wind Receivable:

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 totalling $16.6 million (RMB93.6 million). To date $13.3 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). The Company has initiated legal action against this customer and expects a full recovery of this outstanding amount.

Hanwei will host a conference call to discuss its operational and financial results for the year ended March 31, 2014. Graham Kwan, Executive Vice President and Rick Huang, Chief Financial Officer of Hanwei will host the call. Management invites analysts and investors to participate on the conference call:


                                                                            
Date:                             Tuesday, June 24, 2014                    
                                                                            
                                  1:00 p.m., Eastern Time (10:00 am Pacific 
Time:                             Time)                                     
                                                                            
Dial in number:                   1-888-576-4398 or 1-719-457-2689          
                                                                            
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. The Company owns producing oil and gas rights located near Edmonton, Alberta.

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 AND NON-GAAP MEASURES

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 20, 2014 and Management Discussion and Analysis for the year ended March 31, 2014 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
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ar...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
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, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...