For the year ended
-- FRP pipe sales totalled
$18.0 millionas compared to $30.0 millionfor the prior year. The significant decrease of $12 million(or 40%) was primarily due to the continued slow down in the Company's Chinamarket with a number of major projects by China'sstate owned oil companies placed on hold. Revenue in the Company's Chinamarket reduced to $5.4 millionfrom $10.7 millionin the prior year. Additionally, in the Company's Kazakhstanmarket, revenue reduced to $12.2 millionfrom $17.7 millionwith increased competition from local manufacturers. Revenues were most significantly down in the first quarter of the 2014 Fiscal Year ( $3.8 millionas compared to $9.6 millionin the same quarter of the prior year) and the third quarter of the 2014 Fiscal Year ( $3.4 millionas compared to $8.6 millionin 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 millionfor the year ended March 31, 2014as compared to $4.3 millionfor the prior year. The Company reduced operating expenses over the prior year by approximately $900,000. -- Loss from continuing operations was $2.3 millionas compared to income from continuing operations of $2.4 millionfor the prior year. Basic and diluted loss per share from continuing operations was both $0.03for the year ended March 31, 2014as compared to basic and diluted income per share from continuing operations of $0.03for the prior year. -- Net income was $0.8 millionas compared to $2.4 millionof the prior year. Basic and diluted income per share was $0.01as compared to basic and diluted income per share of $0.03for the prior year. This included a net foreign exchange gain for the year ended March 31, 2014of approximately $3.4 millionfrom the sale of Hanwei Green.
For the three months ended
-- Revenue for the fourth quarter of the 2014 Fiscal Year was
$7.0 millionas compared to $7.9 millionfor the same period of the prior year. -- Net income was $0.8 millionfor the fourth quarter of the 2014 Fiscal Year as compared to $1.8 millionfor the same period of the prior year. -- Basic and diluted earnings per share was $0.02for the fourth quarter of the 2014 Fiscal Year as compared to basic and diluted earnings per share of $0.03for 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
Events Subsequent to the year ended
-- As of
May 31, 2014, FRP pipe sales orders for deliveries subsequent to March 31, 2014were $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 millionor 29% are from customers in the Chinamarket with $2.1 millionor 71% from customers in international markets. -- Hanwei completed the transfer of all mineral rights and surface leases in June 2014for 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 Niskuand Wabamunformations 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
Update on Outstanding Wind Receivable:
During the year ended
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.
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
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Hanwei Energy Services Corp. Graham Kwan, Executive Vice President, Strategic Development and Corporate Affairs 604-685-2239 email@example.com Hanwei Energy Services Corp. Yucai (Rick) HuangChief Financial Officer 604-685-2239 firstname.lastname@example.org Source: Hanwei Energy Services Corp.