China Integrated Energy Announces Acquisitions of Two Gas Stations in Shaanxi Province, China
Acquisitions bring total number of operating gas stations to twelve in Shaanxi province and add approximately $14.2 million in revenues for FY 2010
XI'AN, China, Jan. 14 /PRNewswire-Asia-FirstCall/ -- China Integrated Energy, Inc. (Nasdaq: CBEH; the "Company"), a leading non-state-owned integrated energy company in the People's Republic of China, today announced that it has reached separate agreements to acquire two gas stations located near the city of Xi'an, Shaanxi Province, PRC: Xi'an Huafu gas station and Chang'an Lanlian gas station, which are both located close to the city of Xi'an, Shaanxi Province, PRC.
SUMMARY OF ACQUISITIONS
Gas Station Purchase Sales Sales Revenues Revenues
Price Volume Volume TTM FY 2010E
TTM FY 2010E
Xi'an Huafu $3.8 7,500 tons 8,400 tons $6.6 $7.4
million million million
Chang'an $5.0 6,800 tons 7,800 tons $6.0 $6.8
Lanlian million million million
TOTAL $8.8 14,300 16,200 $12.6 $14.2
million tons tons million million
Xi'an Huafu Gas Station
The Company has acquired operating rights and leased all of the assets of Xi'an Huafu gas station for a total consideration of $3.8 million and will be operated under a 10-year lease. The gas station distributes both gasoline and diesel, which includes blended biodiesel. During the past twelve months, the gas station sold approximately 7,500 tons of fuel and generated revenues of $6.6 million. For the fiscal year of 2010, the Company estimates it will sell approximately 8,400 tons of fuel and generate approximately $7.4 million in revenues.
Chang'an Lanlian Station
The Company has acquired operating rights and leased all of the assets of Chang'an Lanlian gas station for a total consideration of $5.0 million and will be operated under a 15-year lease. The gas station distributes both gasoline and diesel, which includes blended biodiesel. During the past twelve months, the gas station sold approximately 6,800 tons of fuel and generated revenues of $6.0 million. For the fiscal year of 2010, the Company estimates it will sell approximately 7,800 tons of fuel and generate approximately $6.8 million in revenues.
Operating as both a biodiesel producer and distributor, China Integrated Energy, Inc. has the ability to provide stable supply of products to each of its twelve gas stations. Customers pay cash with an average inventory turn of 3 days. As of September 30, 2009, average gross margins for its retail gas stations were 13.3%, which is higher than traditional wholesale distribution. The Company anticipates a significant increase in sales volume from its retail gas stations due to increasing demand for fuel and operating leverage while continuing to expand both gross and operating margins over the next 12 months.
"We are once again pleased to complete these retail acquisitions, which brings our total number of operating gas stations to twelve in Shaanxi province," stated Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy, Inc. "We plan to expand our wholesale distribution network through both organic growth and potential acquisitions and will continue to expand our portfolio of retail gas stations to drive incremental revenue and earnings growth into 2010. In addition, we will continue to address our growth and expansion in biodiesel manufacturing capacity through internal build-out and potential acquisitions as we focus on becoming the leading integrated energy company in China."
About China Integrated Energy, Inc.
The Company is a leading non-state-owned integrated energy company in the PRC and has engaged in three business segments: the wholesale distribution of finished oil and heavy oil products, the production and sale of biodiesel, and the operation of retail gas stations. The Company's primary business segment is the wholesale distribution of finished oil and heavy oil products. The Company also operates a 100,000-ton biodiesel production plant and with these acquisitions, twelve retail gas stations in China.
Safe Harbor Statement
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. For example, statements about the future use of the proceeds are forward looking and subject to risks. China Integrated Energy, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward- looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For more information, please contact:
China Integrated Energy, Inc.
Alex Gong, VP of Capital Market
Tel: +86-136-0127-9912
Email: [email protected]
Web: http://www.cbeh.net.cn
OR
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: [email protected]
Web: http://www.hcinternational.net
SOURCE China Integrated Energy, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article