Longwei Petroleum announces renewal of $186m in annual contracts in January
Longwei Petroleum Investment Holding (NYSE Amex: LPH) said Tuesday that it renewed 15 annual contracts, valued at more than $186 million, in the month of January.
The China-based petroleum product distributor said that the contracts renewed were for 186,000 metric tons of diesel, gasoline and solvents. Based on the current value of these contracts, the company is in line with its annual sales forecast of $500 million for the year ending June 30, 2011.
"The value of our customer contracts adjusts to reflect the current pricing level at the time of delivery, and we anticipate that these contracts may be worth even more if oil hits $100 per barrel as forecasted by Goldman Sachs," said president and CEO Cai Yongjun.
Longwei has a storage capacity for its products of 120,000 metric tons at facilities in Taiyuan and Gujiao, Shanxi. The company sells its products to coal miners, power supply companies, large-scale and small independent gas stations.
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