Hanwei Energy Reports Third Quarter Fiscal 2017 Financial and Operational Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/08/17 -- Hanwei Energy Services Corp. (TSX: HE) ("Hanwei" or the "Company") today reported its financial results for the nine months ending December 31, 2016. All amounts are in Canadian Dollars unless otherwise noted.
The Company has two reportable segments for its continuing operations: its FRP pipe manufacturing and its oil and gas production. The pipe segment produces and sells fiberglass reinforced plastic ("FRP") pipe for the oil and gas industry and other infrastructure applications. The oil and gas segment is engaged in the exploration and production of oil and natural gas in Western Canada.
For the nine months ending December 31, 2016:
As of December 31, 2016 the Company had:
During the three month period ended December 31, 2016, the Company renewed three bank loans with a Chinese bank in an aggregated amount of $4.7 million (RMB24.5 million). The new loans carry interest of 6.09% per annum and expire on December 19, 2017. Total bank debt is $4.7 million and represents a 24% debt to equity ratio (total bank debt divided by total shareholders'' equity) as compared to 37% as at March 31, 2016.
Update on Oil and Gas Activities
The Company entered into a Joint Venture Agreement with a private oil and gas exploration and production company (with interests in Alberta, Saskatchewan and Manitoba) on November 1st, 2016 (the "Miniota Joint Venture") contemplating an area of mutual interest of approximately 9,600 acres (the "AMI") located near the town of Verden, Manitoba, accessed from the Trans Canada Highway. The terms of the Miniota Joint Venture contemplates the Company providing payment of $575,000 plus 50% of the development costs for two new vertical wells into the Lodgepole formation which will earn an approximate 2,230 acres of mineral and surface rights within the AMI (the "Initial Consideration"). The Company''s share of the development costs for these two wells as part of the Initial Consideration is anticipated at approximately $500,000 or a total anticipated Initial Consideration of approximately $1,075,000 (the "Initial Consideration Amount"). On the basis the Company meets its requirements for the Initial Consideration the Company will receive 40% of the Joint Venture''s operating cash flow until 150% of the Initial Consideration Amount is paid to Company. Thereafter the Company will receive 30% of the Joint Venture''s operating cash flow. The Company has paid the initial payment and is in the process of undertaking assessment of the two aforementioned vertical wells.
Any activities subsequent to the Initial Consideration would be undertaken on a joint operating basis. If Company elects not to provide additional funds under the Miniota Joint Venture the Company would be subject to certain non-consent provisions requiring 300% or 500% of capital expended by the other consenting and funding party to be re-paid prior to operating cash flow being dispersed to the non-consenting, non-funding party.
Hanwei will host a conference call to discuss its operational and financial results for the third quarter ended December 31, 2016. 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:
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp.''s principal business operations are in two complementary key segments of the oil and gas industry as both an equipment supplier to the industry (as a leading manufacturer of high pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies serving major energy customers in the global energy market) and as oil and gas producer with properties in Alberta and joint venture interests in Manitoba.
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 21, 2016 and Management Discussion and Analysis for the year ended March 31, 2016 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: 08.02.2017 - 16:00 Uhr
Sprache: Deutsch
News-ID 1485510
Anzahl Zeichen: 3095
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Oil & Gas
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