Hanwei Energy Services Reports First Quarter Fiscal 2022 Financial and Operational Results

VANCOUVER, British Columbia, Aug. 16, 2021 (GLOBE NEWSWIRE) -- Hanwei Energy Services Corp. (TSX: HE) (“Hanwei” or the “Company”), today reported its financial results for the first quarter ended June 30, 2021(“Q1 2022”). All amounts are in Canadian Dollars unless otherwise noted.

Financial and Operating Update

Hanwei's principal business operations are in two complementary segments of the oil and gas industry as an operator and developer of its own oil and gas assets in Canada and as a specialized pipe supplier to the industry, both in Canada and internationally.

Total revenues for Q1 2022 increased to $1.86 million from $1.79 million for the same period in the prior year; the 4% increase was due to a $0.39 million increase in oil and gas revenue offset by a $0.32 million decrease in FRP pipe revenue.

• Q1 2022 FRP pipe business revenue decreased to $1.39 million from $1.71 million for the same quarter in the prior year. The decrease of $0.32 million was mainly due to the timing of sales orders from existing Chinese clients.

• The oil and gas business revenue totalled $0.47 million (averaging 75 boed), equivalent to revenue of $68 per boe, as compared to revenue of $79,000 (averaging 50 boed), equivalent to revenue of $17 per boe, for the same period in the prior year. The increase of $0.39 million was the result of increased production volumes and higher commodity prices.

Q1 2022 Adjusted EBITDA was negative $0.17 million versus negative $0.59 million for the same period in the prior year. The improvement of $0.42 million was mainly because oil and gas business attained a positive Adjusted EBITDA of $54,000 compared to a negative $0.46 million for same period in the prior year.

The Company was at a loss of $0.77 million in Q1 2022 as compared to a loss of $0.73 million for the same quarter in the preceding year.

At the end of Q1 2022, the Company’s current ratio (current assets divided by current liabilities) was 0.31.

About Hanwei Energy Services Corp.

Hanwei’s principal business operations are in two segments of the oil and gas industry as both an equipment supplier to the industry (as a manufacturer of high pressure, fiberglass reinforced plastic (“FRP”) pipe products serving energy customers in the global energy market) and as an oil and gas producer with properties in Alberta.

For more information, please contact:

Mary Ma
Chief Financial Officer
604-685-2239
mma@hanweienergy.com

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING INFORMATION AND NON-GAAP MEASURES

Certain information in this press release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions a description of which is set out in the risk factors section of the Company’s Annual Information Form dated June 24, 2021 and Management Discussion and Analysis for the year ended March 31, 2021 both of which are filed with Canadian securities regulators and available on SEDAR at www.sedar.com. The forward-looking information in this press release describes the Company’s expectations as of the date of this press release.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, THE COMPANY DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LEGISLATION.