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
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...