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.

Contacts:
Hanwei Energy Services Corp.
Graham Kwan, Executive Vice President,
Strategic Development and Corporate Affairs
604-685-2239
[email protected]

Hanwei Energy Services Corp.
Yucai (Rick) Huang
Chief Financial Officer
604-685-2239
[email protected]
www.hanweienergy.com

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
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Transforming cloud-based data into a reportable format can be a very expensive, time-intensive and complex operation. As a SaaS platform with more than 30 million global users, Cornerstone OnDemand’s challenge was to create a scalable solution that would improve the time it took customers to access their user data. Our Real-Time Data Warehouse (RTDW) process vastly reduced data time-to-availability from 24 hours to just 10 minutes. In his session at 21st Cloud Expo, Mark Goldin, Chief Technolo...