VANCOUVER, British Columbia, June 20, 2018 (GLOBE NEWSWIRE) -- Hanwei Energy Services Corp. (TSX:HE) (“Hanwei” or the “Company”), today reported its financial results for the year ended March 31, 2018 (the “2018 Fiscal Year”) and provided an operational update. 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. For the financial year ended March 31, 2018, a summary of the Company’s annual financial results are as follows:
|Summary of the 2018 Fiscal Year Financial Results from Continuing Operations|
|in thousands of CDN$ except percentages and per share data|
|Pipe||Oil & Gas||Corporate||Total||Pipe||Oil & Gas||Corporate||Total|
|Adjusted EBITDA Margin||21%||-46%||n/a||3%||2%||1%||n/a||-11%|
|Adjusted EBITDA per share||0.01||0.00||0.00||0.00||(0.00)||0.00||(0.00)||(0.00)|
|Net Income (loss)||176||(2,811)||(383)||(3,018)||(2,427)||(1,345)||(1,512)||(5,284)|
|Diluted EPS |
(Basic and diluted)
|Weighted average number of outstanding shares ||Basic||194,201,234||Basic||194,201,234|
As before noted the Company’s production wells on its Leduc Lands were shut-in during the six months ended March 31, 2018 so as to accommodate capital expenditures upgrading the Company’s battery facility, conversion of a previously shut in vertical well to a water disposal well to reduce operating expenses, conversion of a previously shut in vertical well to a gas injection well, drilling of a new Nisku horizontal well and re-entry of four existing vertical Wabamun wells to increase both production and operating netback. The Company brought its Leduc Lands back on test production on May 19, 2018. Test production oil volume is currently at approximately 250 bbl/d.
Oil and Gas Reserves
|Remaining Reserves||Net Present Values After Tax|
|Mboe; After Tax (M$)||Gross||Company||Company||@ 0%||@ 5.0%||@ 10.0%||@ 15.0%||@ 20.0%|
|2018 Reserves Report|
|Total Proved + Probable||1,753.7||1,737.7||1,461.5||41,823||31,864||25,214||20,614||17,300|
|2017 Reserves Report|
|Total Proved + Probable||2,242.7||2,161.0||1,814.4||42,892||32,621||25,934||21,341||18,042|
|YoY Variance %||-24.7%||-22.2%||-21.2%||-5.7%||-4.2%||-3.6%||-3.4%||-3.6%|
|Total Proved + Probable||(489)||(423)||(353)||(1,069)||(757)||(720)||(727)||(742)|
|YoY Variance %||-21.8%||-19.6%||-19.4%||-2.5%||-2.3%||-2.8%||-3.4%||-4.1%|
The total principal amount of all short-term loans was $5.1 million as at March 31, 2018 representing a 38% debt to equity ratio (total debt divided by total shareholders' equity). Management believes that the Company has sufficient debt facilities to support its current operations and will continue to assess its debt structure based on the requirements of the business.
The Company also today announced that Mr. Yucai (Rick) Huang, CPA, CGA, the Company's Chief Financial Officer, has resigned to pursue other business opportunities, and will leave the Company on June 21, 2018. The Company wishes to thank Mr. Huang for his decade of service and wishes him success in his next endeavour. Mr. Huang’s resignation is not the result of any dispute or disagreement with the Company including any matters relating to the Company’s accounting practices, internal controls, or financial reporting.
Ms. Xinran (Irene) Mai, CPA, CGA will assume the role of Chief Financial Officer. Ms. Mai is currently Financial Controller for the Company and has been with the Company in various finance and accounting roles since January 2007. She has extensive hands-on experience with the Company in financial management, financial reporting, internal controls, corporate finance and regulatory reporting. She is bilingual in both English and Chinese languages and holds a detailed understanding of the Company’s business and financial affairs in Canada and China. Ms. Mai holds a Bachelor of Engineering degree specializing in industrial management, and is member of the Chartered Professional Accountants in British Columbia (“CPA”).
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.
For more information, please contact:
Executive Vice President, Strategic Development and Corporate Affairs
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.
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 19, 2018 and Management Discussion and Analysis for the year ended March 31, 2018 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.