Hanwei Energy Services Reports First Quarter Fiscal 2020 Financial and Operational Results
VANCOUVER, British Columbia, Aug. 07, 2019 (GLOBE NEWSWIRE) -- Hanwei Energy Services Corp. (TSX: HE) (“Hanwei” or the “Company”), today reported its financial results for the three months ended June 30, 2019. All amounts are in Canadian Dollars unless otherwise noted.
Hanwei's principal business operations are in two complementary segments of the oil and gas industry as an operator and developer of its own producing and exploratory oil and gas assets in Alberta and Manitoba and as a specialized pipe supplier to the industry, both in Canada and internationally.
Total Company revenues for the three months ended June 30, 2019 increased to $2.6 million as compared to $1.6 million for the same period of the prior year. The $1.0 million increase was driven by increases in both FRP pipe revenue and oil and gas revenue.
The pipe business revenue increased to $1.9 million as compared to $1.0 million for the same period of the prior year. The increase was mainly due to timing of projects in China and Canada with end users, and certain pipe orders that were produced during last quarter being shipped during the quarter.
Revenues net of royalties from the Company’s oil and gas business for the three months ended June 30, 2019 totaled approximately $0.6 million (equivalent to $64.35 per boe with a netback of $23.59 per boe) as compared to revenues net of royalties of approximately $0.6 million (equivalent to gross revenue of $62.49 per boe with a netback of $3.72 per boe) for the same period of the prior year. The Company produced approximately 122 boed for the three months ended June 30, 2019 as compared to 104 boed for the same period of the prior year (the Leduc Lands were placed back on production in mid-May 2018 after shut-in for workovers and facility changes).
Adjusted EBITDA from continuing operations for the three months ended June 30, 2019 was negative $0.2 million as compared to negative $0.7 million for the same period of the prior year. The increase in Adjusted EBITDA was due to increased sales in the FRP pipe business and production in the oil and gas business.
The Company had a loss from continuing operations of $0.6 million for the three months ended June 30, 2019 as compared to loss from continuing operations of $1.0 million for the same period of the prior year.
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 18, 2019 and Management Discussion and Analysis for the year ended March 31, 2019 both of which are filed with Canadian securities regulators and available on SEDAR at www.sedar.com. 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.
