Longwei Petroleum Investment Holding Ltd. issued an operational update on its current business activities along with new guidance on sales and earnings over the next two years.
Longwei Petroleum Investment Holding now expects sales in fiscal 2011 to be approximately $480 million, down 4% from the previous estimate. Net income is expected to be $65 million in fiscal 2011, adjusted for the company’s warrant derivative liability expense. The fiscal year ends on 6/30/2011.
Longwei Petroleum Investment Holding has made a partial payment of $85.1 million towards the purchase of a fuel storage facility in Shanxi Province, China. The facility has a 100,000 metric ton capacity and is being purchased from Huajie Petroleum Co., Ltd. The assets being purchased also include a railway line, an office building and land use rights.
Longwei Petroleum Investment Holding said that the remaining payment of $108.3 million to complete the purchase will be funded without raising equity. The company expects the deal to close during the second quarter of fiscal 2012.
Longwei Petroleum Investment Holding expects the purchase of the storage depot and other assets to add to sales and earnings in fiscal 2012. The company has established sales guidance for fiscal 2012 at $576 million, and net income of $78 million.
For more information on the company, go to www.longweipetroleum.com
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