Keyuan Petrochemicals Inc. Announces Preliminary Third Quarter 2010 Financial Results

NINGBO, China, Oct. 20 /PRNewswire-Asia-FirstCall/ -- Keyuan Petrochemicals, Inc. (Nasdaq: KEYP) ("Keyuan" or the "Company"), a leading merchant manufacturer of various petrochemical products in China, announced preliminary financial results for the quarter ended September 30, 2010. The Company's sales were $151.3 million for the third quarter of 2010, up 14.7% from the second quarter of 2010.

"We continue to witness strong demand for our products," stated Chungfeng Tao, Chairman and Chief Executive Officer of Keyuan. "Our strong sales growth in the third quarter was driven by expanded production volumes and higher pricing. With additional operating efficiencies and new capacity coming online in 2011 and 2012, we are optimistic in our ability to increase incremental revenues."

Management is reaffirming its full year 2010 guidance of approximately $550 million of revenues and approximately $36.3 million of net income, excluding public company expenses. This guidance assumes average annual sales volume of 660,000 MT of petrochemical product sales in 2010. Keyuan will release third quarter 2010 financial results by mid-November. Additional information regarding the earnings conference call will be announced prior to earnings release date.

About Keyuan Petrochemicals, Inc.

Keyuan Petrochemicals, Inc., established in 2007 and operating through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo, China and is a leading independent manufacturer and supplier of various petrochemical products. Having commenced production in October 2009, Keyuan's operations include an annual petrochemical manufacturing design capacity of 550,000 MT for a variety of petrochemical products, with facilities for the storage and loading of raw materials and finished goods, and a technology that supports the manufacturing process with low raw material costs and high utilization and yields. In order to meet increasing market demand, Keyuan plans to expand its manufacturing capacity to include a SBS production facility, additional storage capacity, a raw material pre-treatment facility, and an asphalt production facility.

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. Keyuan Petrochemicals, 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, including its registration statement on Form S-1, as amended. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.