Chairman David Wheeler Outlines Chinese Growth Plans
Premiere Eastern, which has turned its significant expertise and local business knowledge into a highly profitable Chinese petrochemical supply business, is in discussions to acquire a string of retail petrol stations in its Guangdong Province stronghold.
The company's Non-Executive Chairman, David Wheeler, said the Chinese retail petrol sector is viewed as a major growth market opportunity.
"With a growing Chinese middle-class, buying more and better quality motor vehicles, there has been a real surge in demand for quality retail petrol outlets," Mr Wheeler said.
He noted that with the rapid growth of a number of major cities, there has also been a strong recent move to locate petrol stations on new road transport hubs outside of those centres.
"Premiere Eastern has identified a number of ideally located retail outlets that we are interested in acquiring," Mr Wheeler said.
The acquisition of these key infrastructure assets will require Premier Eastern to go to the market to raise some additional capital.
"We have received strong interest from the bond market and we are in the process of deciding the most suitable funding mechanism that will allow us to proceed with this initiative," Mr Wheeler said.
The Premiere Eastern Chairman also revealed that the company, which only listed on the ASX in February this year, is already looking at a dividend payment plan.
The company recently announced it had made a profit after tax of A$33.3 million for FY2014, an increase of 11.7% increase from its FY2013 result. Revenue for the year grew by 9.2% to A$926.9 million compared to AUD$849.2 million in FY2013.
"This is a very strong, cash generating business and we are excited about the direction we are heading in," Mr Wheeler said.
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About Premiere Eastern Energy Limited
Premiere Eastern Energy Limited (ASX:PEZ) is a leading integrated supply chain manager of petrochemical products in the PRC based in the Guangdong Province, PRC. As an integrated supply chain manager, it engages in the wholesale distribution of petrochemical products including sourcing, storage, shipping, sales and marketing and after-sales services of petrochemical products in the PRC.
The Group's business focuses on the wholesale supply of Refined Petroleum and Other Petrochemicals used mainly in automobiles. The Group owns a petroleum storage facility located in Longkou City, Shandong Province, PRC with a total petroleum storage capacity of 13,500 m3 (equivalent to approximately 9,000 tonnes), comprising four petroleum storage tanks with 3,000 m3 each and three petroleum storage tanks of 500 m3 each.
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