Hanwei Energy Services Reports First Quarter Fiscal 2014 Financial and Operational Results
Cash flow from continuing operations increases by $1.8M to $3.5M for the quarter $1.2M received from outstanding wind power accounts receivable subsequent to the quarter
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/07/13 -- Hanwei Energy Services Corp. (TSX: HE) ("Hanwei" or the "Company") today reported its financial results for the three months ending June 30, 2013. All amounts are in Canadian Dollars unless otherwise noted.
Specific highlights for the three months ending June 30, 2013 include:
Subsequent to the quarter the Company also received a payment of RMB7 million ($1.2 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 press release approximately RMB172.6 million ($29.4 million) has been collected with a balance of RMB50.6 million ($8.6 million) outstanding. The Company is continuing its efforts to collect the balance of this outstanding amount. The Company's cash balance as of the date of this press release was $2.1 million.
Summary of Financial Results
With an increasing proportion of the Company's sales being generated internationally the Company's revenues may not be evenly distributed during the year or be similar on a year over year basis. As such timing of certain sales orders has significant impact on the Company's timing of revenues by quarter. For the three months ended June 30, 2013 revenues were $3.8 million representing a decline of 60% as compared to revenues of $9.6 million for the same period of the prior year. The decline was caused by continuing weakness in the Company's China market and timing of sales orders to be confirmed in its international markets. Of the $3.8 million of revenue 19% of this revenue was from the Company's China market and 81% from the Company's international markets (as compared to 59% from China market and 41% from international markets for the same period of the prior year).
Gross profit for the three months ended June 30, 2013 was $0.9 million or 23% of revenues as compared to gross profit of $3.3 million or 34% of revenues for the same period of the prior year. Gross profit margin was impacted in part due to a one-time $233,000 cost related to damage of a pipe order during shipping and delivery that was not recoverable under the Company's insurance program.
For the three months ended June 30, 2013 the decline in revenue also resulted in:
As of July 31, 2013, FRP pipe sales orders were $ 4.6 million. These sales orders are expected to be completed within the fiscal year ending March 31, 2014. Of these sales orders, $2.7 million or 59% are from customers in the China market with $1.9 million or 41% from customers in international markets. The Company continues to pursue a number of significant opportunities in its international markets.
Update on Major Cash Receivables
Hanwei will host a conference call to discuss its operational and financial results for the three months ended June 30, 201. 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:
A replay of the conference call will be available on the Company's website .
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp. is a world leader in the manufacturing of high pressure, fiberglass reinforced plastic ("FRP") 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.
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 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 . 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
Hanwei Energy Services Corp.
Yucai (Rick) Huang
Chief Financial Officer
604-685-2239
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Datum: 08.08.2013 - 01:04 Uhr
Sprache: Deutsch
News-ID 285786
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VANCOUVER, BRITISH COLUMBIA
Kategorie:
Oil & Gas
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