|By Marketwired .||
|January 14, 2014 04:44 PM EST||
TORONTO, ONTARIO -- (Marketwired) -- 01/14/14 -- MCW Energy Group Limited (TSX VENTURE: MCW) ("MCW"), a Canadian holding company involved in fuel distribution and the creation of oil sands extraction technology, has reported and filed its corporate financial statements for the year ending August 31st, 2013.
MCW ended its fiscal year end with net revenues of US$431,932,384 from its fuel distribution sales generated by its Fuels Division. This represents an increase of US$68.6 million or 19% over the same period of 2012 (2012 - US$363,300,000 and 2011 - US$241,500,000). The increase in sales was primarily due to an additional 20 million gallons of fuel during the fiscal year of 2013 to August 31st, 2013. Gross profit for this period represented 1.9% of net revenues (2012 gross profit stood at 1.8%), which has remained consistent and in line with fuel distribution industry averages. MCW believes that it will continue to improve its gross profits by increasing the number of branded service stations under its various comprehensive premier branding programs (76, Valero and Alliance), as well as several value-added programs such as rebranding, state-of-the-art accounting systems, credit card processing, inventory control systems and price management services.
Mr. Karlo Vartan, MBA, BSc., MCW's Chief Financial Officer stated, "Sales increases year over year are primarily a result of an increased customer base in our Fuels Division, due to our continued aggressive marketing efforts, as well as the acquisition of new branded service station accounts. The increase in the net loss between 2011 and 2012 was most significantly due to a one-time charge to bad debt expense of approximately US$2.3 million to reflect old uncollectible accounts. MCW's asset base has increased substantially during 2013 due to the construction of its initial oil sands extraction plant now underway in Asphalt Ridge, Utah. Assets have also increased throughout recent years via the acquisition of ownership of a gas station transferred from shareholders of MCW, acquisition of branded accounts from Westco Petroleum Distributors Inc., and the assignment of Valero-Branded Reseller Distribution Agreements from Ocean Pacific Fuels Inc. (acquisitions were reported in previous Press Releases). Due to the increase in MCW's fuel distribution operations, MCW is able to acquire greater supplier rebates and more advantageous product pricing from refineries."
MCW's corporate filings and financial statements are available at SEDAR, website: www.sedar.com.
About MCW Energy Group:
MCW Energy Group Limited is focused on value creation as (i) a distributor of gasoline and diesel fuels to service stations in Southern California for 75 years, having revenue in the fiscal year ending August 31st, 2011 of US$241.5 million, revenue of US$363.3 million for the fiscal year ending August 31st, 2012, and revenue of US$431.9 million for the fiscal year ending August 31st, 2013, and (ii) as a developer of proprietary technology for the extraction of oil from oil sands at its first field in Asphalt Ridge, Utah, USA. MCW's management team is comprised of individuals who have extensive knowledge in both conventional and unconventional oil and gas projects and production, as well as refinery and fuel distribution experience.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Forward -looking statements in this news release, include, but are not limited to the commercial viability of the technology and the extraction plant, economic performance and future plans and objectives of MCW. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although MCW believes that the expectations reflected in forward looking statements are reasonable, they can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, MCW disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.