Achieved Strong Growth with Solid Fundamentals
Revenue Increased 150% to HK$13.63 billion
Profit Attributable to Shareholders Surged 334% to HK$1.14 billion
HONG KONG, Sept. 28 /PRNewswire-Asia/ --
Financial Highlights:
-- Total revenue up 150% to HK$13.63 billion (2009: HK$5.45 billion)
-- Profit attributable to shareholders surged 334% to HK$1.14 billion
(2009: HK$263 million)
-- Basic earnings per share increased by 265% to HK19.0 cents (2009: HK5.2
cents)
-- Total net assets grew by 255% to HK$4.14 billion (2009: HK$1.17 billion)
-- Cash on hand increased to HK$2.80 billion (2009: HK$1.02 billion)
-- Proposed final dividend: HK3.0 cents per share
Brightoil Petroleum (Holdings) Limited ("Brightoil Petroleum" or the "Company", together with its subsidiaries, the "Group"; HongKong: 0933), one of the largest service providers of marine bunkering in China, announced its annual results for the year ended 30 June 2010.
For the year ended 30 June 2010 ("the Period"), the total revenue of the Group increased by 150% to HK$13.63 billion. Gross profit rose 185% to HK$1.53 billion (2009: HK$538 million). During the Period, profit attributable to shareholders surged 334% to approximately HK$1.14 billion (2009: HK$263 million). Basic earnings per share was HK19.0 cents, up 265% as compared to the previous year. Diluted earnings per share increased to HK15.6 cents from HK5.2 cents in the previous year. A final dividend of HK3.0 cents per share is proposed for the Period under review.
During the Period, the Group reported an increase in fair value of derivative financial instruments of approximately HK$355.4 million (2009: HK$56.8 million), which was attributable to the futures contracts entered into by the Group for hedging oil price exposure.
Total cash on hand as at 30 June 2010 was approximately HK$2.80 billion (2009: HK$1.02 billion). In July 2010, the Group conducted another placement (after the first placement in April 2010) and raised approximately HK$1 billion to further strengthen our cash and financial position. As at 30 June 2010, total net assets grew by 255% to HK$4.14 billion (2009: HK$1.17 billion).
Commenting on the results, Dr. Sit Kwong Lam, Chairman and CEO of the Group, said, "2010 was a significant year for Brightoil Petroleum, delivering record results for our shareholders and further strengthening the Group's competitive advantages for future development. We will continue to harness our unrivalled position as one of the largest marine bunker suppliers in China and to pursue further exposure around the world, in order to strengthen our global brand recognition and also secure long-term earnings potential. "
During the Period, the significant achievements of each business segment were as follows:
Marine Bunkering -
For the year ended 30 June 2010, we recorded bunker sales volume of approximately 3.9 million tonnes, representing a remarkable increase of 117% over the previous year.
Our PRC operations covered ports in Shenzhen, Shanghai, Ningbo and Zhoushan, which are recognized as the busiest ports in China, contributing revenue of approximately HK$6.38 billion to the Group, representing a 20% growth over the previous year. The Group plans to expand into other major Chinese ports including Rizhao, Tianjin, Dalian and Qingdao in the near term.
During the Period under review, the Group provided services in the world's top bunkering ports, including Hong Kong, Singapore and Antwerp-Rotterdam-Amsterdam. The overseas ports contributed approximately HK$7.25 billion of revenue with approximately 2 million tonnes of fuel oil being sold (2009: nil). In July 2010, we started our operation in Tanjung Pelepas of Malaysia. For the overseas market, we will expand our operations in the US soon. Preparation work for launching our bunkering service in Houston port is in the final stage.
Oil Storage & Terminal
Dredging and reclamation works for phase 1 of the Zhoushan and Dalian projects started on 6 July 2010 and 18 June 2010 respectively. Both projects, with a total capacity of up to 17.5 million m3, are scheduled to be completed in phases by 2012 and 2013.
The two oil storage and terminal projects located in Dalian and Zhoushan are aimed to taking advantage of their strategic locations with deepwater terminals, supporting our marine bunkering business in major ports along the coastal areas of China, further fortifying our leading position as one of the largest marine bunkering suppliers in the PRC market, as well as becoming a global leader of oil storage and terminal operation.
To capture the robust growth of the global marine bunkering business, we relentlessly seek storage and terminal support either through leasing from local operators, strategic partnerships with storage owners or constructing our own facilities.
Marine Transportation
From November 2009 to August 2010, the Group purchased 9 ocean-going oil tankers with sizes ranging from 107,500 DWT to 318,000 DWT. Two oil tankers weighted 107,500 DWT each have been delivered to us and are now in operation, while the other two oil tankers with capacity of 115,000 DWT each are expected to be delivered around October and November 2010. On 30 August 2010, the Group entered into 5 shipbuilding contracts with Hyundai Heavy Industries Co. Ltd. to purchase 5 new build Very Large Crude Carriers (VLCCs) each weighted 318,000 DWT. The 5 VLCCs are now under construction and expected to be delivered to us between July 2012 and March 2013. The prices of the vessels were significantly lower than previous years, however, slight improvement in the global shipping market in the second quarter indicated the vessel prices have bottomed out.
Upstream Business
In August 2009, the Group signed our first upstream production sharing contract (PSC) with China National Petroleum Corporation (CNPC) for the Tuzi Block, situated in Xinjiang Province, People's Republic of China. This agreement was implemented by the Chinese Ministry of Commerce on 1 December 2009. From that date, the Group has a 21 month evaluation period to produce an Overall Development Plan and seek approval to develop the field in accordance with those plans. The Tuzi field was discovered by CNPC in 1999. The PSC covers an area of 158 km2, and is situated immediately north of the Dina-1 gas and condensate field, which Shenzhen Brightoil Group Co., Ltd. is currently developing and putting into production. A reserve of 22.1 billion m3 (780 billion feet3) of gas in place was certified by the Chinese Government. The Group believes the project will provide significant upside to our shareholders given the surging demand for natural gas and the uptrend of gas price in China. In January 2010, the Group reached a consensus with its partner CNPC to accelerate the Tuzi Development. Gaining much momentum and progressing efficiently, we are now targeting to start production in the second half of 2011.
Looking forward, Dr. Sit concluded, "Brightoil Petroleum endures in its commitment to integrate its value chain in the energy sector, from the expansion of global marine bunkering operations, formation of marine transportation fleet, establishing oil storage and terminal operations, to seeking upstream exploration and production opportunities, we believe all these will bring enormous benefit to the Group. With the Group's vision to be one of the leading global energy conglomerates in the world, our management team will continue to devote significant effort on the establishment of a solid foundation by integrating both upstream and downstream businesses, and deliver favourable return to our shareholders."
About Brightoil Petroleum
Brightoil Petroleum (Holdings) Limited is principally engaged in global marine bunkering business, oil storage and terminal, marine transportation as well as natural gas development and production. It is one of the largest chain service providers of marine bunkering in China. Currently, the Group is constructing a 2.2 million m3 oil storage facility and a terminal with fifteen 1,000 to 300,000 DWT class berths on Waidiao Island, Zhoushan City in the Yangtze Delta in phase one. The Group will progressively develop the island by starting phase two of the oil storage facility and the total capacity of both phases will reach 5.5 million m3. The Group's construction of up to 12 million m3 oil storage facility in 2 phases and a terminal that could accommodate vessels with capacity of 1,000 to 300,000 DWT, on Changxing Island, Dalian, Bohai Bay has also been commenced. Meanwhile, the Group has purchased four ocean-going oil tankers with over 100,000 DWT each, and five new build Very Large Crude Carriers (VLCCs) with 318,000 DWT each, for supporting its marine bunkering business and oil trading business. On the other hand, the Group has also expanded into upstream business. The Group has successfully teamed up with CNPC for the natural gas development and production in the Tuzi Block, Tarim Basin in Xinjiang Province. The project has a geological reserve of natural gas in place of approximately 22.1 billion m3 and is planned to have its first production in the second half of 2011. Along with the increasing trend of the price of oil and natural gas resources in China, it is expected that the value of the Tuzi project will continue to escalate. In the future, the Group will strive to develop the upstream business by stretching its tentacles in the exploitation, production and sale of oil fields with a view to becoming one of the leading global energy conglomerates in the world.
Investor and Media Enquiries:
Henry Chik
PRChina
Tel: +852-2522-1368
Email: hchik@prchina.com.hk
David Shiu
PRChina
Tel: +852-2522-1838
Email: dshiu@prchina.com.hk
Ada Tsang
PRChina
Tel: +852-2522-2823
Email: atsang@prchina.com.hk
