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Longwei Petroleum (LPH) Announces Interim Operating Highlights

TAIYUAN, China, Jan. 11, 2011 /PRNewswire-Asia/ — Longwei Petroleum Investment Holding Ltd. (NYSE Amex: 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 provided select operating data and highlights for October and November 2010.

During the first two months of the fiscal second quarter ended December 31, 2010, Longwei generated $79.7 million in revenues, a year-over-year increase of 69% from $47.1 million for the same period in 2009. The table below provides highlights (in USD millions) for the comparative two-month periods:

Revenues:

Oct. 2009

Nov. 2009

Total 2009

Oct. 2010

Nov. 2010

Total 2010

Taiyuan

22,122

18,504

40,626

21,845

23,113

44,958

Gujiao

0

4,148

4,148

14,966

16,011

30,977

Agency

1,175

1,200

2,375

1,805

1,976

3,781

TOTAL

23,297

23,852

47,149

38,616

41,100

79,716

Cost of Sales

18,700

19,094

37,794

30,892

32,828

63,720

Gross Profit

4,597

4,759

9,355

7,724

8,272

15,996

“We are very pleased with our financial performance this quarter as our customers’ demand for petroleum products continues to grow,” said Cai Yongjun, President and CEO of Longwei. “We are now enjoying the benefits of having our Gujiao facility open for a year. The advantage of our large storage capacity and proximity to our customers allows us to better serve their needs. We have established a reputation for having product on-hand, and we can deliver on a timely basis to support our customers’ growth.”

Revenues for the fiscal year ended June 30, 2010 totaled $343 million, a 72% increase from fiscal 2009 revenues of $197 million. The Company has forecasted revenues exceeding $500 million for the fiscal year ended June 30, 2011, a 46% increase from fiscal 2010. Revenues for the first five months of fiscal 2011 increased 81% year-over-year to $193.0 million, up from $106.6 million for the first five months of fiscal 2010. The increase is primarily due to the contribution of the Gujiao facility and strong customer demand.

“The outlook for our industry and the economic environment is promising, as both the industrial and vehicle markets grow in our region,” said Michael Toups, CFO of Longwei. “We are actively exploring strategic opportunities to take advantage of this growth in the marketplace. Our last acquisition has proven to be very successful, and we want to be well-positioned to expand our distribution base to support the growing demand.”

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, Shanxi Province. The Company has a storage capacity for its products of 120,000 metric tons located at storage facilities in Taiyuan and Gujiao, Shanxi. The Company’s Taiyuan and Gujiao facilities can store 50,000 metric tons and 70,000 metric tons, respectively. The Company is 1 of 3 licensed intermediaries in Taiyuan and the sole licensed intermediary in Gujiao that operates its own large-scale storage tanks. The Company has the necessary licenses to operate and sell petroleum products not only in Shanxi but throughout the entire PRC. The Company’s storage tanks have the largest storage capacity of any non-government operated entity in Shanxi.

The Company seeks to earn profits by selling its products at competitive prices with timely delivery to coal mining operations, power supply customers, large-scale gas stations and small, independent gas stations. The Company also earns revenue under an agency fee by acting as a purchasing agent for other intermediaries in Shanxi, and through limited sales of diesel and gasoline at two retail gas stations, each located at the Company’s 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.

For further information on Longwei Petroleum Investment Holding Limited, please visit http://www.longweipetroleum.com. You may register to receive Longwei Petroleum Investment Holding Limited’s future press releases or request to be added to the Company’s distribution list by contacting Dave Gentry at info@redchip.com.

Forward-Looking Statements

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 Longweis industry, managements 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. Longweis 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 Companys 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.

Contact:

At the Company:

Michael Toups, Chief Financial Officer

U.S. Office +1 727-641-1357

P.R.C. Tel. +86 186 0125 0891

mtoups@longweipetroleum.com

http://www.longweipetroleum.com

Investor Relations:

Dave Gentry, President

RedChip Companies, Inc.

Tel: +1-800-733-2447 Ext. 104

Email: info@redchip.com

Jing Zhang, Chief Representative

RedChip Companies Beijing Office

Tel: +86 10-8591-0635

Web: http://www.RedChip.com

Tuesday, January 11th, 2011 Uncategorized
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