TAIYUAN CITY, China,
Nov. 20, 2012 /PRNewswire-FirstCall/
-- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH)
("Longwei" or the "Company"), an energy company engaged in the
storage and distribution of finished petroleum products in
the People's Republic of China
("PRC"), today announced it has completed scheduled maintenance and
plant upgrades at its Gujiao facility.
Longwei recently completed plant upgrades at its Gujiao facility
to include new coatings for its large storage tanks and scheduled
maintenance and upgrades. The Gujiao facility has a storage
capacity of 70,000 metric tons. Since commencing operations
in November 2009, the Gujiao facility
has grown to account for $233.8
million in petroleum sales for fiscal year 2012.
"We are continually working to improve our operations and
customer relationships," said Cai Yongjun, Chairman and Chief
Executive Officer of Longwei. "We have a very good safety
record over our 17-year operating history, and we have maintained
strong, long-standing working relationships with industry
regulators and local government officials."
The Company's PRC wholly-owned operating subsidiary, Taiyuan
Longwei Economy & Trading Co., was one of 15 companies in
Taiyuan City and one of only 140 companies in Shanxi Province recognized on February 15, 2012 as a "Provincial Honorable and
Credible Enterprise" for 2010. The Company received the award from
the Shanxi Administration for Industry and Commerce based on
Longwei's reputation as a company that honors its contractual
obligations and maintains its credibility with customers. "We have
worked hard to build a good reputation for the Company. The
management team and all of our employees labor diligently to
service our customers and the community for the betterment of our
surrounding region," stated Mr. Cai.
Longwei's operations have now expanded to include three
facilities within Shanxi Province.
The Huajie facility asset purchase closed on September 26, 2012 for a purchase price of
approximately US $110.6 million paid
from the Company's cash flow. Since the Huajie facility began
operations in October 2012, the
Company has added 16 new major customers for the facility.
Longwei has also received the support of local government and
business leaders who view the new facility as a stimulant for
regional growth and as a key piece of infrastructure to support
local employment and economic development.
Longwei has also added a section to its website to include a
description of its operating licenses for the wholesale
distribution and handling of petroleum products. The two
licenses include the Wholesale Distribution of Finished Oil License
and the Dangerous Chemical Distribution License. The Company
is in good standing under both of these licenses, which now
encompass all three facilities. Additional information can be
found on the Company's website:
http://www.longweipetroleum.com/operations/licenses.
Longwei recently reported revenues of US $133.4 million and non-GAAP net income of
$18.3 million or $0.18 per share, adjusted for the non-cash
warrant derivative liability charge, for the first fiscal quarter
ended September 30, 2012. The
Company's product sales volume increased 17.8% year-over-year to
110,587 metric tons during the quarter. As of September 30, 2012, the Company reported total
assets of US $360.0 million and book
value per share of $3.47.
Longwei expects year-over-year revenue growth of approximately
26.6% to $646.3 million, and net
income growth of approximately 24.2% to $77.6 million, adjusted for the non-cash warrant
derivative liability, for the fiscal year ending June 30, 2013. This growth rate does not
account for any external financing for inventory, which could
accelerate growth. The growth is driven primarily by the
ramp-up of the Huajie facility and organic growth at the Company's
two existing facilities.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy
company engaged in the storage and distribution of finished
petroleum products in the People's
Republic of China. The Company's oil and gas operations
consist of transporting, storing and selling finished petroleum
products, entirely in the PRC. The Company's headquarters are
located in Taiyuan City, Shanxi
Province. The Company has a storage capacity for its
products of 220,000 metric tons located at three storage facilities
within Shanxi: Taiyuan, Gujiao and
Huajie, which have an individual storage capacity of approximately
50,000 metric tons ("mt"), 70,000mt, and 100,000mt,
respectively. The Company has the necessary licenses to
operate and sell petroleum products not only in Shanxi, but throughout the entire PRC. The
Company's storage tanks have the largest storage capacity of any
non-government operated entity in Shanxi.
The Company seeks to earn profits by selling its products at
competitive prices with timely delivery to transportation
companies, coal mining operations, power supply customers,
large-scale gas stations and small, independent gas stations. The
Company also earns revenue from agency fees by acting as a
purchasing agent for other intermediaries in Shanxi, and through limited sales of diesel
and gasoline at two retail gas stations, each located at the
Company's Taiyuan and Gujiao facilities. The Company seeks to
continue to expand its customer base and distribution platform
through the utilization of its large storage capacity, which allows
the Company the flexibility to take advantage of pricing, supply
and demand fluctuations in the marketplace.
Longwei was recently named to the Forbes list of
"Asia's 200 Best Under a Billion"
from a universe of 15,000 companies. Forbes ranked the
companies based on sales growth, earnings growth and return on
equity in the past 12 months and over three years. As was
reported, Longwei's three-year track record is 45% sales growth,
28% earnings per share growth and 28% return on equity. The
Forbes article can be found at:
http://www.forbes.com/sites/christinasettimi/2012/07/25/asias-200-best-under-a-billion.
For further information on Longwei Petroleum Investment Holding
Limited, please visit http://www.longweipetroleum.com. You may
register to receive Longwei Petroleum Investment Holding Limited's
future press releases or request to be added to the Company's
distribution list by contacting Dave
Gentry at info@redchip.com.
Forward-Looking Statements
Certain statements contained herein constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current expectations, estimates and
projections about Longwei's industry, management's beliefs and
certain assumptions made by management. Readers are cautioned that
any such forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Because such statements
involve risks and uncertainties, the actual results and performance
of the Company may differ materially from the results expressed or
implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Longwei's operations are conducted
in the PRC and, accordingly, are subject to special considerations
and significant risks not typically associated with companies in
North America and Western Europe. These include risks associated
with, among others, the political, economic and legal environment
and foreign currency exchange. The Company's results may be
adversely affected by changes in the political and social
conditions in the PRC and by changes in governmental policies with
respect to laws and regulations, anti-inflationary measures,
currency conversion, remittances abroad, and rates and methods of
taxation. Other potential risks and uncertainties include but are
not limited to the ability to procure, properly price, retain and
successfully complete projects, and changes in products and
competition. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions
to the forward-looking statements made here. Readers should review
carefully reports or documents the Company files periodically with
the Securities and Exchange Commission.
Contact:
At the Company:
Michael Toups, Chief Financial
Officer
Tel: U.S. Office +1-727-641-1357
Email: mtoups@longweipetroleum.com
Web: http://www.longweipetroleum.com
Investor Relations:
Mike Bowdoin
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 110
Email: mike@redchip.com
Web: http://www.redchip.com
Tina Xiao
Weitian Group LLC
Tel: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
Web: http://www.weitian-ir.com
SOURCE Longwei Petroleum Investment Holding Ltd.