New $2.4 million pipe order for Canada
Current Cash Balance of $7.7 million
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 10, 2015) - Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company") today provided a Canadian sales update and reported its financial results for the six months ended September 30, 2015. All amounts are in Canadian Dollars unless otherwise noted.
Update on FRP Pipe Sales in Canada
Hanwei has confirmed as of the date of this news release a new $2.4 million order from a Canadian customer that will be produced and shipped in two batches within the Company's current fiscal year ending March 31, 2016. As previously disclosed, the Company's Canadian market for its FRP pipe products is considered a new growth market. The Company's business strategy in this market utilizes a distribution model with inventory purchased by the Company's Canadian distributor. This allows the Company's FRP pipes and fittings to be readily available to end users in Alberta and Saskatchewan from yards located in Weyburn, Saskatchewan, and Taber and Edmonton in Alberta. Despite the current oil and gas industry downturn, approximately 45,000 meters of Hanwei pipe has been installed in Alberta and Saskatchewan over last 18 months.
Financial and Operational Summary for the six-month period ended September 30, 2015
The Company has two reportable segments for its continuing operations: its FRP pipe manufacturing and its oil and gas production. The pipe segment produces and sells fiberglass reinforced plastic ("FRP") pipe to the oil and gas industry and other infrastructure applications. The oil and gas segment is engaged in the exploration and production of oil and natural gas in Western Canada.
As of September 30, 2015 the Company had:
For the six months ending September 30, 2015:
Hanwei will host a conference call to discuss its operational and financial results for the second quarter ended September 30, 2015. 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:
A replay of the conference call will be available on the Company's website.
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp.'s principal business operations are in two complimentary 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 an operator of its producing oil and gas mineral assets at its lands in Alberta.
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 17, 2015 and Management Discussion and Analysis for the year ended March 31, 2015 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.
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