NINGBO, China, Nov. 15, 2012 /PRNewswire-FirstCall/ -- Keyuan Petrochemicals Inc. (OTCQB: KEYP), ("Keyuan" or "the Company"), an independent manufacturer and supplier of various petrochemical products in China, today announced that it filed Form 12b-25 with the Securities and Exchange Commission on November 15, 2012 to extend the filing of the Company's Form 10-Q for the three months ended September 30, 2012 within the 5-day grace period.
The Company is in the process of compiling and disseminating the information required to be included in its Form 10-Q interim report for the three months ended September 30, 2012, as well as the completion of the required review of the Company's financial information, however, the process could not be completed by November 14, 2012 without incurring undue expense due to the effects of the aftermath of Hurricane Sandy. Keyuan expects to announce its second three months of 2012 financial results on or before November 19, 2012.
The Company expects revenues of $164.3 million based on the sale of 155,249 MT petrochemical products for the three months ended September 30, 2012, compared to revenues of $164.7 million for the three months ended September 30, 2011, a decrease of $0.3 million, or 0.2%. The Company expects a net loss of approximately $4.1 million for the three months ended September 30, 2012, as compared to a net loss of approximately $10.7 million in the same period in 2011, a decrease of $6.6 million, or 62%. The decrease was due to a higher yield rate and decreased legal, consulting and investigation expenses. The Company recorded a net income for the first two quarters in 2012. For the third quarter ended September 30, 2012, the net loss resulted from production losses due to a 15 day scheduled facilities shutdown for routine inspection and maintenance in September 2012, the fluctuation in exchange rate and the persistent impact of the market downturn.
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 2010, Keyuan's operations include an annual petrochemical manufacturing design capacity of 720,000 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 which was completed in September 2011 and one production line has entered into commercial production, additional storage capacity, a raw material pre-treatment facility, an asphalt production facility, and an ABS production facility.
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements" relating to the business of Keyuan Petrochemicals, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the impact of the proceeds from the private placement on the Company's short term business and operations, the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
SOURCE Keyuan Petrochemicals, Inc.