DOW JONES NEWSWIRES
China North East Petroleum Holdings Ltd. (NEP) released
preliminary 2009 results a day after the oil company delayed the
filing of its annual report, sending its stock lower.
The delay also resulted in the company receiving a noncompliance
notification from the New York Stock Exchange, China North East
said Friday.
The independent oil production and services company in northern
China said Thursday it would postpone the release because it wasn't
able to prepare all necessary information without incurring extra
effort and expense. The company said it intended to report its full
2009 annual results in coming weeks and believed that it would be
in compliance with the listing rules.
"We are implementing the necessary steps towards improving our
internal controls and financial reporting function. We take these
issues very seriously and are working aggressively to prevent a
reoccurrence of such issues in the future," said President and
Chief Executive Hongjun Wang.
Meanwhile, China North East Petroleum reported a preliminary
2009 loss attributable to common shareholders of $22.1 million
while revenue increased 10% to $64.7 million on increased oil
production and the acquisition of an oil drilling facility. Output
climbed 41% while prices fell the same amount.
Wang said while the company regretted the delay in the filing,
"our preliminary 2009 non-GAAP financial results which exclude
certain noncash charges were very strong."
In February, the company announced its reported financial
results for 2008 and the first three quarters of 2009 should not be
relied on due to accounting errors in items such as warrants,
interest expense and changes in the fair value of the reclassified
warrants.
Shares rose 0.7% in recent premarket trading to $9.16.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com