Longwei Petroleum Investment Holding Ltd. (LPIH.OB), one of the leading distributors and wholesalers of diesel, gasoline, kerosene and fuel oils in Taiyuan City in the People’s Republic of China, recently announced revenue of approximately $197 million for the fiscal year ended June 30, 2009. The company’s net income totaled $23.9 million, equating to earnings per share of $0.31.
Longwei Petroleum also expects to raise capital of approximately $15 million in order to secure inventory and complete the construction of a 70,000-metric ton capacity storage tank facility in Gujiao City, which is expected to add approximately $40 million in revenue and roughly $6 million to net income for the fiscal year ending June 30, 2010.
Commenting on the news, Jim Crane, the company’s chief financial officer, stated, “I wish to clarify and correct certain assumptions made regarding the capital raise and its impact on earnings for the fiscal year ending June 30, 2010. The proposed capital raise will not affect EBIDTA, which is expected to increase from $39 million in fiscal 2009 to $47 million in fiscal 2010, which equates to EBITDA per share of approximately $0.50. The raise will affect net income in fiscal 2010.” He concluded, “We are projecting revenue of approximately $322 million in fiscal 2011, net income of $81 million, and earnings per share of approximately $0.86 per share.”