June 24, 2009 / 3:27 PM / in 9 years

UPDATE 1-Hanwei Energy tempers 2009 revenue growth expectation

* Hanwei cuts 2009 revenue growth forecast to 30-50 pct

* Signs LOI to supply wind power equipment in Inner Mongolia

* Expects LOI to have no material impact in 2009

June 24 (Reuters) - Hanwei Energy Services Corp (HE.TO) lowered its 2009 revenue growth forecast, citing flat sales in the oil pipe sector and the potential for some wind power deliveries to be delayed to early 2010.

Hanwei expects revenue growth of between 30 to 50 percent for 2009, down from its prior expectation of a 40 to 60 percent growth.

“EPS is expected to grow due to revenue growth, improved net margin, and Hanwei’s acquisition of China National Petroleum Corporation’s 9 percent minority interest in Harvest,” Hanwei said in a statement.

The company plans to fund its 2009 growth with cash on hand, cash flow from operations and debt, and limit shareholder dilution by controlling the issuance of additional shares.

In addition, the company said it signed a non-binding letter of intent (LOI) with the Xilinguole Prefecture Administration Bureau, Inner Mongolia Autonomous Region of China, to supply wind power turbines and blades.

However, the company said it faces significant challenges to convert the LOI into a formal contract. The LOI will not have a material impact on its 2009 funding needs or financial performance, it said.

Shares of the Vancouver, British Columbia-based company were up 11 Canadian cents at C$1.35 in Wednesday morning trade on the Toronto Stock Exchange. (Reporting by Sakshi Mattoo in Bangalore; Editing by Ratul Ray Chaudhuri)

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