Longwei Petroleum Raises Full-Year Guidance With Increased Revenue Contribution From Its Huajie Facility
TAIYUAN CITY, China, Jan. 2, 2013 /PRNewswire/ -- 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 that it has raised its full-year guidance for the fiscal year ending June 30, 2013 ("FY13").
Longwei now forecasts FY13 revenue to increase 30.7% year-over-year to $667.3 million, versus prior forecasts of $646.3 million. Longwei also projects net income, adjusted for the warrant derivative liability, to increase approximately 23.0% year-over-year to $80.1 million, versus the prior forecast of $77.6 million. The growth is primarily driven by the better-than-expected ramp-up of the new Huajie facility. Longwei now expects revenue contribution from the Huajie facility of $121.0 million in FY13, up 21.0% from the prior forecast of $100.0 million. The guidance does not account for any potential external financing for inventory, which could accelerate growth.
"The Huajie facility has captured significant market share in its region during its first three months of operations, leading to better-than-expected throughput. This, combined with continued organic growth of the Taiyuan and Gujiao facilities, positions us well for strong growth in FY13," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "We expect strong quarterly top-line and bottom-line results for the period ended December 31, 2012."
With the addition of the Huajie facility, the Company's total storage capacity has increased to 220,000 metric tons ("mt"). Longwei's storage capacity is reported in metric tons based on the mass or weight of the product converted to volume storage based on the density of the product stored in its tanks, which consists of both above and below ground storage. The volume storage capacity measurement is calculated in accordance with industry standards. The tank inventory has been continuously audited under U.S. GAAP procedures by a U.S.-based, PCAOB-registered public accounting firm for the past six years.
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