The company has acquired operating rights and leased all of the assets of Xi’an Huafu gas station for a total consideration of $3.8m 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. For the fiscal year of 2010, the company estimates it will sell approximately 8,400 tons of fuel and generate approximately $7.4m in revenues.
China Integrated Energy has also acquired operating rights and leased all of the assets of Chang’an Lanlian gas station for a total consideration of $5m and will be operated under a 15-year lease. The gas station distributes both gasoline and diesel, which includes blended biodiesel. For the fiscal year of 2010, the company estimates it will sell approximately 7,800 tons of fuel and generate approximately $6.8m in revenues.
Gao Xincheng, CEO of China Integrated Energy, said: “We are once again pleased to complete these retail acquisitions, which brings our total number of operating gas stations to twelve in Shaanxi province.
“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.”
