VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 21, 2017) - Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), today reported its financial results for the year ended March 31, 2017 (the "2017 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, 2017, a summary of the Company's annual financial results are as follows;
Summary of the 2017 Fiscal Year Financial Results from Continuing Operations | ||||||||||||||||
in thousands of CDN$ except percentages and per share data | ||||||||||||||||
FY2017 | FY2016 | |||||||||||||||
Pipe | Oil & Gas | Corporate | Total | Pipe | Oil & Gas | Corporate | Total | |||||||||
Revenue | 4,947 | 2,528 | 7,475 | 6,483 | 1,886 | 8,369 | ||||||||||
Adjusted EBITDA | 108 | 34 | (942 | ) | (800 | ) | (1,981 | ) | (254 | ) | (8,231 | ) | (10,466 | ) | ||
Adjusted EBITDA Margin | 2 | % | 1 | % | n/a | -11 | % | -31 | % | -13 | % | n/a | -125 | % | ||
Adjusted EBITDA per share | (0.00 | ) | 0.00 | (0.00 | ) | (0.00 | ) | (0.01 | ) | 0.00 | (0.04 | ) | (0.05 | ) | ||
Net Income (loss) | (2,427 | ) | (1,345 | ) | (1,512 | ) | (5,284 | ) | (4,056 | ) | (1,306 | ) | (8,259 | ) | (13,621 | ) |
Diluted EPS (Basic and diluted) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.02 | ) | (0.01 | ) | (0.04 | ) | (0.07 | ) |
Weighted average number of outstanding shares | Basic | 194,201,234 | Basic | 194,201,234 | ||||||||||||
Diluted | 194,201,234 | Diluted | 194,201,234 | |||||||||||||
Oil and Gas Reserves
Remaining Reserves | Net Present Values After Tax | |||||||||
Mboe; After Tax (M$) | Gross | Company | Company | @ 0% | @ 5.0% | @ 10.0% | @ 15.0% | @ 20.0% | ||
100% | Gross | Net | M$ | M$ | M$ | M$ | M$ | |||
2017 Reserves Report | ||||||||||
Total Proved | 1,420.1 | 1,366.1 | 1,124.7 | 26,544 | 21,083 | 17,381 | 14,773 | 12,865 | ||
Total Proved + Probable | 2,242.7 | 2,161.0 | 1,814.4 | 42,892 | 32,621 | 25,934 | 21,341 | 18,042 | ||
2016 Reserves Report | ||||||||||
Total Proved | 978.2 | 912.2 | 764.5 | 14,218 | 10,832 | 8,473 | 6,828 | 5,659 | ||
Total Proved + Probable | 1,645.9 | 1,567.9 | 1,320.9 | 25,198 | 17,974 | 13,151 | 9,866 | 7,565 | ||
Variance | ||||||||||
Total Proved | 442 | 454 | 360 | 12,326 | 10,251 | 8,908 | 7,945 | 7,206 | ||
Total Proved + Probable | 597 | 593 | 494 | 17,694 | 14,647 | 12,783 | 11,475 | 10,477 |
Bank Debt
The Company continues to effectively manage its bank loans and credit facilities. The total principal amount of all bank loans was $4.7 million as at March 31, 2017 representing a 32% debt to equity ratio (total bank 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.
Other
Hanwei will host a conference call to discuss its operational and financial results for the year ended March 31, 2017. 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: | Friday, June 23, 2017 |
Time: | 1:00 p.m., Eastern Time (10:00 am Pacific Time) |
Dial in number: | 1-888-542-1102 or 1-719-325-2359 |
A replay of the conference call will be available on the Company's website http://www.hanweienergy.com/. |
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
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 20, 2017 and Management Discussion and Analysis for the year ended March 31, 2017 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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