Nov. 20, 2012
/PRNewswire-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in
the People's Republic of China
("PRC"), today announced it has completed scheduled maintenance and plant upgrades at its Gujiao facility.
Longwei recently completed plant upgrades at its Gujiao facility to include new coatings for its large storage tanks and scheduled maintenance and upgrades. The Gujiao facility has a storage capacity of 70,000 metric tons. Since commencing operations in
, the Gujiao facility has grown to account for
in petroleum sales for fiscal year 2012.
"We are continually working to improve our operations and customer relationships," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "We have a very good safety record over our 17-year operating history, and we have maintained strong, long-standing working relationships with industry regulators and local government officials."
The Company's PRC wholly-owned operating subsidiary, Taiyuan Longwei Economy & Trading Co., was one of 15 companies in Taiyuan City and one of only 140 companies in
February 15, 2012
as a "Provincial Honorable and Credible Enterprise" for 2010. The Company received the award from the Shanxi Administration for Industry and Commerce based on Longwei's reputation as a company that honors its contractual obligations and maintains its credibility with customers. "We have worked hard to build a good reputation for the Company. The management team and all of our employees labor diligently to service our customers and the community for the betterment of our surrounding region," stated Mr. Cai.
Longwei's operations have now expanded to include three facilities within
. The Huajie facility asset purchase closed on
September 26, 2012
for a purchase price of approximately US
paid from the Company's cash flow. Since the Huajie facility began operations in
, the Company has added 16 new major customers for the facility. Longwei has also received the support of local government and business leaders who view the new facility as a stimulant for regional growth and as a key piece of infrastructure to support local employment and economic development.
Longwei has also added a section to its website to include a description of its operating licenses for the wholesale distribution and handling of petroleum products. The two licenses include the Wholesale Distribution of Finished Oil License and the Dangerous Chemical Distribution License. The Company is in good standing under both of these licenses, which now encompass all three facilities. Additional information can be found on the Company's website:
Longwei recently reported revenues of US
and non-GAAP net income of
per share, adjusted for the non-cash warrant derivative liability charge, for the first fiscal quarter ended
, 2012. The Company's product sales volume increased 17.8% year-over-year to 110,587 metric tons during the quarter. As of
September 30, 2012
, the Company reported total assets of US
and book value per share of
Longwei expects year-over-year revenue growth of approximately 26.6% to
, and net income growth of approximately 24.2% to
, adjusted for the non-cash warrant derivative liability, for the fiscal year ending
, 2013. This growth rate does not account for any external financing for inventory, which could accelerate growth. The growth is driven primarily by the ramp-up of the Huajie facility and organic growth at the Company's two existing facilities.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy company engaged in the storage and distribution of finished petroleum products in
the People's Republic of China
. The Company's oil and gas operations consist of transporting, storing and selling finished petroleum products, entirely in the PRC. The Company's headquarters are located in Taiyuan City,
. The Company has a storage capacity for its products of 220,000 metric tons located at three storage facilities within
: Taiyuan, Gujiao and Huajie, which have an individual storage capacity of approximately 50,000 metric tons ("mt"), 70,000mt, and 100,000mt, respectively. The Company has the necessary licenses to operate and sell petroleum products not only in
, but throughout the entire PRC. The Company's storage tanks have the largest storage capacity of any non-government operated entity in
The Company seeks to earn profits by selling its products at competitive prices with timely delivery to transportation companies, coal mining operations, power supply customers, large-scale gas stations and small, independent gas stations. The Company also earns revenue from agency fees by acting as a purchasing agent for other intermediaries in
, and through limited sales of diesel and gasoline at two retail gas stations, each located at the Company's Taiyuan and Gujiao facilities. The Company seeks to continue to expand its customer base and distribution platform through the utilization of its large storage capacity, which allows the Company the flexibility to take advantage of pricing, supply and demand fluctuations in the marketplace.
Longwei was recently named to the
list of "
's 200 Best Under a Billion" from a universe of 15,000 companies.
ranked the companies based on sales growth, earnings growth and return on equity in the past 12 months and over three years. As was reported, Longwei's three-year track record is 45% sales growth, 28% earnings per share growth and 28% return on equity. The
article can be found at:
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Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Longwei's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Longwei's operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
At the Company:
Michael Toups, Chief Financial OfficerTel: U.S. Office +1-727-641-1357Email: