Darling Ingredients Inc. Reports Second Quarter 2014 Financial Results

– Net income of $32.8 million or $0.20 per diluted share; Pro Forma Adjusted EBITDA of $158.0 million

– Solid performance of the new global business with sharp improvement in USA on a sequential basis

– Results include $9.2 million of Non-Cash Adjustments and Acquisition-Related Costs

IRVING, Texas, Aug. 8, 2014 /PRNewswire/ — Darling Ingredients Inc. (NYSE: DAR), a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries, today announced financial results for the second quarter ended June 28, 2014.

Net sales for the second quarter of 2014 increased to $1.0 billion, compared with $423.6 million in the same period of 2013, attributable to newly acquired operations. Operating income in the second quarter of 2014 was $75.5 million reflecting an increase of $24.7 million or 49% as compared to income for the same period of 2013. Results include a $5.0 million increase to cost of sales related to the inventory step-up associated with required purchase accounting for the VION Acquisition and $4.2 million associated with continued acquisition and integration costs of Rothsay and the VION Acquisition.

Comments on the Second Quarter

“We posted a respectable second quarter performance, which now reflects full contributions from our newly acquired operations around the world,” said Randall Stuewe, Darling Ingredients Inc. Chairman and Chief Executive Officer.

“During the second quarter, the Feed Ingredients Segment delivered a solid performance lead by North American operations. Protein and fat values remained strong around the globe. Our Bakery Feeds unit delivered a nice performance sequentially but continues to feel the pressure of eroding corn prices. Canada delivered notable earnings and Europe remained a steady contributor to operating income,” continued Mr. Stuewe. “In general, our raw material volumes were steady around the globe and margins remained healthy.”

“The Food Ingredients Segment continued to perform as anticipated. Rousselot, a global leader in gelatin, turned in a solid performance. Demand remains steady however prices were marginally lower in some geographies due to competition and tight raw material supplies. Our European edible fat business delivered lower earnings driven by compressed margins as a result of the increased supplies of raw materials primarily in Germany due to ongoing trade restrictions with Russia. CTH, our casings business, improved marginally over the first quarter of 2014.”

“Our Fuel Ingredients Segment, anchored by Diamond Green Diesel, reported a weaker performance compared to first quarter 2014 on low RIN (Renewable Identification Number) values due to the continued uncertainty of the U.S. mandated renewable fuel volume obligation (RVO) and whether there would be an extension of the existing federal alternative fuel blenders tax credit. The DGD Joint Venture operated at name plate capacity during the second quarter of 2014 and continues to be one of the lowest cost producers of biomass based renewable diesel in the world.” Mr. Stuewe added, “Our European operations within the Fuel Ingredients Segment proved to be steady contributors with Rendac and Ecoson delivering solid returns. This quarter marked the starting of operations at our new biogas facility in Son, Netherlands; built to generate green electricity and bio-phosphate fertilizer.”

“With respect to the incident at our DGD facility in Norco, LA on August 3rd, no one was injured and the firefighting teams and Valero emergency response teams responded rapidly. The fire was isolated and extinguished. Preliminary damage assessment is underway and we hope to have the facility operational within 60 days. Most notably, the downtime will allow us to perform additional maintenance and debottlenecking to increase name plate capacity by 10% when we start back up.”

“Overall to date, we are pleased with the integration success of our new global ingredients company and look forward to bringing greater value to our customers and shareholders,” concluded Mr. Stuewe.

Continued Quarter Results

Second quarter 2014 net income was $32.8 million, or $0.20 per diluted share, compared with net income of $26.4 million, or $0.22 per diluted share, in the second quarter of 2013. The Company’s second quarter 2014 results include the following after tax costs:

  • $3.5 million ($0.02 per diluted share) related to a non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition related to the portion of acquired inventory sold during the period; and
  • $2.6 million ($0.01 per diluted share) associated with the acquisition and integration of Rothsay and VION during the quarter.

Net income and diluted earnings per common share, adjusted to eliminate the one-time costs listed above, would have been $38.9 million and $0.24 per diluted share, respectively.

Reconciliation of Net Income to Adjusted EBITDA and Pro forma Adjusted EBITDA

Darling Ingredients Inc. reports Adjusted EBITDA results, which is a non-GAAP financial measure, as a complement to results provided in accordance with generally accepted accounting principles (GAAP). The Company believes that Adjusted EBITDA provides additional useful information to investors since certain financial covenants under the Company’s Senior Secured Credit Facilities and Senior Unsecured Notes that were outstanding at June 28, 2014, are also measured based on an altered version of the Company’s Adjusted EBITDA metric. As the Company uses the term, Adjusted EBITDA means:

Three Months Ended

Adjusted EBITDA

June 28,

June 29,

(U.S. dollars in thousands)

2014

2013

Net income

$ 32,757

$26,418

Depreciation and amortization

67,498

22,076

Interest expense

26,571

5,669

Income tax expense

15,503

16,335

Foreign currency gain

(11)

Other expense / (income), net

887

418

Equity in net (income)/ loss of unconsolidated subsidiaries

(2,040)

1,962

Net income attributable to noncontrolling interests

1,818

Adjusted EBITDA

$142,983

$72,878

Non-cash inventory step-up associated with VION Acquisition

4,971

Acquisition and integration-related expenses

4,165

DGD Joint Venture Adjusted EBITDA (Darling’s share) (1)

5,902

(1,962)

Pro Forma Adjusted EBITDA

$158,021

$70,916

(1) Derived from the unaudited financial statements of the DGD Joint Venture.

For the second quarter of 2014, the Company generated Adjusted EBITDA of $143.0 million, as compared to $72.9 million in the same period a year ago. The increase was primarily attributable to the inclusion of the newly acquired businesses. On a Pro Forma Adjusted EBITDA basis, the Company would have generated $158.0 million in the second quarter 2014, as compared to a Pro Forma Adjusted EBITDA of $70.9 million in the year ago period. The increase in Pro Forma Adjusted EBITDA is attributable to the inclusion of the newly acquired businesses.

Second Quarter Segment Performance

Feed Ingredients

Three Months Ended

($ thousands)

June 28, 2014

June 29, 2013

Net Sales

$ 599,884

$ 421,366

Operating Income

$ 74,506

$ 58,397

  • Feed Ingredients operating income increased by $16.1 million to $74.5 million compared to the second quarter of 2013. Results reflect $1.5 million related to the non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition. Adjusted operating income for the Feed Ingredient Segment without the inventory step-up costs would have been $76.0 million or $17.6 million higher than the second quarter 2013.
  • Higher earnings were predominantly related to earnings attributable to newly acquired operations. The U.S. operations contributed $2.7 million less in Feed Ingredients operating income relative to the second quarter of 2013. This reduction was principally related to lower earnings in the bakery feeds division and higher selling, general and administrative costs, depreciation and amortization expenses. Canada operations performed better than expected, while operations in Europe and China generally performed as expected.

Food Ingredients

Three Months Ended

($ thousands)

June 28, 2014

June 29, 2013

Net Sales

$ 329,541

Operating Income

$ 11,313

  • Food Ingredients operating income was $11.3 million for the second quarter of 2014 compared to no prior reporting segment or activity in the Food Ingredients business lines in the second quarter of 2013. Results reflect $3.4 million related to the non-cash inventory step-up associated with the purchase accounting for the VION Acquisition. Adjusted operating income for the Food Ingredients Segment without the inventory step-up costs would have been $14.7 million. On an adjusted sequential quarter basis, the Food Ingredients operating income decreased by $5.1 million from $19.8 million in the first quarter of 2014. This reduction from first quarter was principally related to the European edible fats business which was adversely impacted by the closure of the Russian trade border resulting in higher raw material supply and increased production that put pressure on selling prices and resulted in lower margins for the Company’s finished products.
  • Global demand for gelatin was generally steady with the exception of China, which saw a slight reduction in demand. The Company’s casing business improved marginally over the first quarter 2014 as a result of increased sales volume of sheep casings.

Fuel Ingredients

Three Months Ended

($ thousands)

June 28, 2014

June 29, 2013

Net Sales

$ 77,534

$ 2,227

Operating Income

$ 5,439

$ 422

  • Fuel Ingredients operating income increased by $5.0 million to $5.4 million, exclusive of the DGD Joint Venture, compared to second quarter 2013. Including the DGD Joint Venture, the Fuel Ingredients Segment income was $6.9 million in second quarter 2014. On an adjusted sequential quarter basis, the Fuel Ingredients operating income inclusive of the DGD Joint Venture decreased by $0.3 million, which was principally related to a reduction in the equity in net income inclusion from the DGD Joint Venture, which was substantially off-set by improved earnings in the European green energy and bio-phosphate operations.
  • Results for North America continue to be negatively impacted by lower RIN values, resulting from an uncertain regulatory environment with respect to the U.S. mandated RVO requirements for 2014 and uncertainty related to the possible extension of the blenders tax credit. For the quarter, the DGD Joint Venture operated at name plate capacity.

Subsequent Event

On August 3, 2014, a fire occurred at the Diamond Green Diesel facility in Norco, LA. The fire was isolated and extinguished and no one was injured. The preliminary assessment of the incident appears to indicate that no major damage occurred to any of the vessels. Damage appears to be relatively isolated and will require some piping, mechanical and electrical replacements. The cause of the fire remains unknown at this time. The facility is currently shut down and while it is early in the preliminary assessment phase, we believe that the facility may be operational within 60 days. The DGD Joint Venture is in the process of reviewing its insurance policies, including property damage and business interruption, for available coverage under such policies. Any claims made under such policies will be subject to the terms and conditions of the underlying policy, including applicable deductibles and waiting periods.

Additionally, a decision has been made to move forward with a limited turnaround during this downtime to replace some catalyst in the Eco-finer unit along with several debottlenecking and metallurgical upgrades that should result in approximately a 10% name plate capacity increase for winter production.

Six Months Ended June 28, 2014 Performance

For the six months ended June 28, 2014, the Company reported net sales of $1.9 billion, as compared to $869.0 million for the 2013 comparable period. The $1.1 billion increase in sales resulted primarily to the inclusion of the newly acquired businesses.

For the six months ended June 28, 2014, the Company reported a net loss of ($20.0) million, or ($0.12) per diluted share, as compared to net income of $58.8 million, or $0.50 per diluted share, for the 2013 comparable period. The results for the six months period include the following after-tax costs:

  • $34.8 million ($0.21 per diluted share) related to a non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition related to the portion of acquired inventory sold during the period;
  • $20.2 million ($0.12 per diluted share) related to the redemption premium and write-off of deferred loan cost associated with the retirement of the Company’s 8.5% Senior Notes on January 7, 2014;
  • $14.6 million ($0.09 per diluted share) associated with the acquisition and integration of Rothsay and VION Ingredients during the period;
  • $8.0 million ($0.05 per diluted share) related to certain euro forward contracts entered into to hedge against foreign exchange risks related to the closing of the VION Acquisition: and
  • $5.2 million ($0.03 per diluted share) associated with discrete tax items principally associated with the VION Acquisition.

Net income and diluted earnings per common share, adjusted to eliminate the one-time costs listed above, would have been $63.4 million and $0.38 per diluted share, respectively. As compared to the six months ended June 29, 2013, this would have resulted in a $4.6 million increase in net income and a 24% decline in diluted earnings per common share.

Operating income for the six months ended June 28, 2014 was $74.9 million, which reflects a decline of $34.5 million or 32% as compared to the six months ended June 29, 2013. The results for the six months include an increase to cost of sales of $49.8 million related to the inventory step-up associated with the required purchase accounting for the VION Acquisition. Without these costs, operating income would have been $124.7 million or 14% higher than 2013. Including the Company’s share of net income of unconsolidated subsidiaries, primarily the DGD Joint Venture, operating income for the six months ended June 28, 2014, would have been $131.8 million or $22.4 million (20.5%) higher than 2013. The DGD Joint Venture has not yet distributed any earnings to its venture partners.

Reconciliation of Net Income to Adjusted EBITDA and Pro forma Adjusted EBITDA – Six Months Ended

Six Months Ended

Adjusted EBITDA

June 28,

June 29,

(U.S. dollars in thousands)

2014

2013

Net income/ (loss) allocable to Darling

$ (20,046)

$ 58,823

Depreciation and amortization

133,167

43,943

Interest expense

85,428

11,294

Income tax expense/ (benefit)

(2,787)

36,753

Foreign currency loss

13,803

Other expense/ (income), net

2,025

(649)

Equity in net (income)/ loss of unconsolidated subsidiaries

(7,117)

3,157

Net loss/ (income) attributable to noncontrolling interests

3,615

Adjusted EBITDA

$208,088

$153,321

Non-cash inventory step-up associated with VION Acquisition

49,803

Acquisition and integration-related expenses

20,113

DGD Joint Venture Adjusted EBITDA (Darling’s share) (1)

14,975

(3,157)

Darling Ingredients International – 13th week (2)

4,100

Pro Forma Adjusted EBITDA

$297,079

$150,164

(1)

Derived from the unaudited financial statements of the DGD Joint Venture.

(2)

January 7, 2014 closed on VION Ingredients, thus the 13th week would be revenue adjusted for January 1, 2014 through January 7, 2014.

For the six months ended June 28, 2014, the Company generated Adjusted EBITDA of $208.1 million, as compared to $153.3 million in the same period a year ago. The increase was primarily attributable to the newly acquired businesses. On a Pro forma Adjusted EBITDA basis, the Company would have generated $297.1 million in the second quarter 2014, as compared to a Pro forma Adjusted EBITDA of $150.2 million in the year ago period. The increase in Pro forma Adjusted EBITDA is attributable to the inclusion of the newly acquired businesses.

About Darling

Darling Ingredients Inc. is the world’s largest publicly-traded developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy and fertilizer industries. With operations on five continents, the Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The Company also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. In addition, the Company provides grease trap services to food service establishments, environmental services to food processors and sells restaurant cooking oil delivery and collection equipment. For additional information, visit the Company’s website at http://ir.darlingii.com.

Darling Ingredients Inc. will host a conference call to discuss the Company’s second quarter 2014 financial results at 8:30 am Eastern Time (7:30 am Central Time) on Friday, August 8, 2014. To listen to the conference call, participants calling from within North America should dial 877-270-2148; international participants should dial 412-902-6510. Please refer to access code 10050348. Please call approximately ten minutes before the start of the call to ensure that you are connected.

The call will also be available as a live audio webcast that can be accessed on the Company website at http://ir.darlingii.com beginning two hours after its completion, a replay of the call can be accessed through August 14, 2014, by dialing 877-344-7529 domestically, or +1-412-317-0088 if outside North America. The access code for the replay is 10050348. The conference call will also be archived on the Company’s website.

Cautionary Statements Regarding Forward-Looking Information:

{This media release contains “forward-looking” statements regarding the business operations and prospects of Darling Ingredients Inc. and industry factors affecting it. These statements are identified by words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “could,” “may,” “will,” “should,” “planned,” “potential,” “continue,” “momentum,” and other words referring to events that may occur in the future. These statements reflect Darling Ingredient’s current view of future events and are based on its assessment of, and are subject to, a variety of risks and uncertainties beyond its control, each of which could cause actual results to differ materially from those indicated in the forward-looking statements. These factors include, among others, existing and unknown future limitations on the ability of the Company’s direct and indirect subsidiaries to upstream their profits to the Company for payments on the Company’s indebtedness or other purposes; general performance of the U.S. and global economies; disturbances in world financial, credit, commodities and stock markets; any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets; volatile prices for natural gas and diesel fuel; climate conditions; unanticipated costs or operating problems related to the acquisition and integration of Rothsay and Darling Ingredients International (including transactional costs and integration of the new enterprise resource planning (ERP) system); global demands for bio-fuels and grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company’s products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand or other factors, reduced volume from food service establishments, reduced demand for animal feed, or otherwise; reduced finished product prices; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the National Renewable Fuel Standard Program (RFS2) and tax credits for biofuels both in the U.S. and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of Bird Flu including, but not limited to H1N1 flu, bovine spongiform encephalopathy (or “BSE”), porcine epidemic diarrhea (“PED”) or other diseases associated with animal origin in the U.S. or elsewhere; unanticipated costs and/or reductions in raw material volumes related to the Company’s compliance with the existing or unforeseen new U.S. or foreign regulations (including, without limitation, China) affecting the industries in which the Company operates or its value added products (including new or modified animal feed, Bird Flu, PED or BSE or similar or unanticipated regulations); risks associated with the renewable diesel plant in Norco, Louisiana owned and operated by a joint venture between Darling Ingredients and Valero Energy Corporation, including possible unanticipated operating disruptions; risks relating to possible third party claims of intellectual property infringement; increased contributions to the Company’s pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere; and/or unfavorable export or import markets. Other risks and uncertainties regarding Darling Ingredients Inc., its business and the industries in which it operates are referenced from time to time in the Company’s filings with the Securities and Exchange Commission. Darling Ingredients Inc. is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.}

 

Darling Ingredients Inc.

Consolidated Operating Results

For the Periods Ended June 28, 2014 and June 29, 2013

(Dollars in thousands, except per share amounts)

(unaudited)

Three Months Ended

Six Months Ended

$ Change

$ Change

June 28,

June 29,

Favorable

June 28,

June 29,

Favorable

2014

2013

(Unfavorable)

2014

2013

(Unfavorable)

Net sales

$1,006,959

$423,593

$ 583,366

$1,938,394

$869,015

$ 1,069,379

Costs and expenses:

Cost of sales and

operating expenses

$ 747,966

$309,922

(438,044)

$1,492,945

$632,608

(860,337)

Selling, general and

administrative expenses

111,845

40,793

(71,052)

217,248

83,086

(134,162)

Depreciation and amortization

67,498

22,076

(45,422)

133,167

43,943

(89,224)

Acquisition and Integration costs

4,165

(4,165)

20,113

(20,113)

Total costs and expenses

931,474

372,791

(558,683)

1,863,473

759,637

(1,103,836)

Operating income

75,485

50,802

24,683

74,921

109,378

(34,457)

Other expense:

Interest expense

(26,571)

(5,669)

(20,902)

(85,428)

(11,294)

(74,134)

Foreign currency gain/(loss)

11

11

(13,803)

(13,803)

Other income/(expense), net

(887)

(418)

(469)

(2,025)

649

(2,674)

Total other expense

(27,447)

(6,087)

(21,360)

(101,256)

(10,645)

(90,611)

Equity in net income/(loss) of unconsolidated subsidiaries

2,040

(1,962)

4,002

7,117

(3,157)

10,274

Income/(loss) before income taxes

50,078

42,753

7,325

(19,218)

95,576

(114,794)

Income taxes expense/(benefit)

15,503

16,335

832

(2,787)

36,753

39,540

Net income/(loss)

$ 34,575

$ 26,418

$ 8,157

$ (16,431)

$ 58,823

$ (75,254)

Net (income)/loss attributable to noncontrolling interests

$ (1,818)

$ (1,818)

$ (3,615)

$ (3,615)

Net income/(loss) attributable to Darling

$ 32,757

$ 26,418

$ 6,339

$ (20,046)

$ 58,823

$ (78,869)

Basic income/(loss) per share:

$ 0.20

$ 0.22

$ (0.02)

$ (0.12)

$ 0.50

$ (0.62)

Diluted income/(loss) per share:

$ 0.20

$ 0.22

$ (0.02)

$ (0.12)

$ 0.50

$ (0.62)

 

Darling Ingredients Inc.

Condensed Consolidated Balance Sheets – Assets

For the Periods Ended June 28, 2014 and December 28, 2013

(Dollars in thousands)

June 28,

December 28,

2014

2013

Current assets:

(unaudited)

Cash and cash equivalents

$ 143,785

$ 870,857

Restricted cash

350

354

Accounts Receivable, net

467,392

112,844

Inventories

431,529

65,133

Prepaid expenses

26,296

14,223

Income taxes refundable

26,448

14,512

Other current assets

33,022

32,290

Deferred income taxes

18,955

17,289

Total current assets

1,147,777

1,127,502

Property, plant and equipment

less accumulated depreciation, net

1,697,058

666,573

Intangible assets

less accumulated amortization, net

1,037,479

588,664

Other assets:

Goodwill

1,442,299

701,637

Investment in unconsolidated subsidiaries

147,662

115,114

Other

76,077

44,643

Deferred income taxes

6,443

Total assets

$5,554,795

$3,244,133

 

Darling Ingredients Inc.

Condensed Consolidated Balance Sheets

Liabilities and Stockholders’ Equity

For the Periods Ended June 28, 2014 and December 28, 2013

(Dollars in thousands)

June 28,

December 28,

2014

2013

Current liabilities:

(unaudited)

Current portion of long-term debt

$ 68,616

$ 19,888

Accounts payable, principally trade

313,171

43,742

Income taxes payable

7,830

Accrued expenses

167,552

113,174

Total current liabilities

557,169

176,804

Long-term debt, net of current portion

2,302,655

866,947

Other non-current liabilities

98,241

40,671

Deferred income taxes

472,863

138,759

Total liabilities

3,430,928

1,223,181

Commitments and contingencies

Total Darling’s Stockholders’ equity:

2,025,380

2,020,952

Noncontrolling interests

98,487

Total stockholders’ equity

$2,123,867

$2,020,952

$5,554,795

$3,244,133

 

For More Information, contact:

Melissa A. Gaither, Director of Investor Relations

Email: [email protected]

251 O’Connor Ridge Blvd., Suite 300

Phone: +1-972-717-0300

Irving, Texas 75038

 

PW Power Systems to Provide Albanesi S.A. with an FT4000™ SWIFTPAC® Gas Turbine Generator Package

GLASTONBURY, Conn., Aug. 8, 2014 /PRNewswire/ — PW Power Systems, Inc. (PWPS), a group company of Mitsubishi Heavy Industries, Ltd. (MHI), has announced a contract with Generacion Frias S.A., a subsidiary company of Albanesi S.A., to provide an FT4000™ SWIFTPAC® unit for its location in Frias, Santiago del Estero, Argentina. This will be the first FT4000™ SWIFTPAC® in Latin America.

The new FT4000™ SWIFTPAC® gas turbine generator package offered by PWPS produces the highest output of any aero-derivative engine while maintaining high efficiency. As a next-generation product, the FT4000™ SWIFTPAC® unit builds on over fifty years of aero-derivative experience and more than 2,000 industrial gas turbines installed worldwide. With a modular design that includes proven features of the successful FT8® SWIFTPAC® power plants, the FT4000™ engine, powered by a Pratt & Whitney® PW4000™ derivative gas generator, offers a 60 to 120 MW package of reliable peaking and base-load power in a compact footprint. The FT4000™ engine is designed for simple-cycle, combined-cycle, or cogeneration applications. The free-turbine design of the system allows for flexible power plant operation down to 25 percent of full load, synchronous condensing operation without a clutch, and spinning reserve capacity.

The proven SWIFTPAC® design is a cost-effective solution for flexible, high-power density needs across the globe. “PWPS designed the FT4000™ SWIFTPAC® to satisfy the growing demand for reliable and efficient gas power plants around the world,” said Peter Christman, president of PWPS. “We’ve had an excellent reception from our current and prospective customers for the FT4000™ SWIFTPAC®, and the continued traction we are seeing with this product demonstrates the confidence of the market in this world-class application.”

The unit will be delivered in 2014 with commercial operation in May 2015.

Also, another noteworthy achievement occurred in May of this year when PWPS and MHI celebrated a successful first year since MHI acquired PWPS in 2013. “The anniversary was a significant milestone for both companies,” said Yasuo Nagashima, vice president of PWPS. “The joining of our companies allows MHI to offer a complete line of gas turbines including both aero-derivatives and heavy-frame units. This allows us to be a one-stop shop for most power producers’ requirements.”

About PW Power Systems, Inc.
PW Power Systems, Inc. (PWPS), headquartered in Glastonbury, Conn., is a world leader in the supply of energy solutions for the power generation industry. PWPS provides a wide variety of products and services, including gas turbine packages; industrial gas turbine aftermarket services; renewable energy systems; and engineering, procurement, and construction services. PWPS is a group company of Mitsubishi Heavy Industries, Ltd. (MHI). MHI, headquartered in Tokyo, Japan, is one of the world’s leading heavy machinery manufacturers, with consolidated net sales of approximately $32.5 billion for the fiscal year ending March 31, 2014. MHI’s diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space systems and air-conditioning systems. To learn more about PWPS, visit www.pwps.com.

Paradigm Shift: Temaswiss Upskills Banking Professionals in ASEAN

SINGAPORE, Aug. 7, 2014 /PRNewswire/ — Temaswiss Wealth‘s Chief Executive Officer, veteran banker Dr. Ranjan Chakravarty, was featured today in Channel New Asia’s prime-time news programme, Singapore Tonight. Temaswiss Wealth states to be Asia’s premier organization that drives banking professionals’ enablement through domain expertise training.

Dr. Chakravarty particularly highlighted the market paradox of who currently benefits from specialized functional training in banking versus the need to rapidly upskill the local talent pool in Singapore and the ASEAN region. “Some industry stakeholders look at training budget allocation purely from an overtly short-term view and end up allocating budget as a function and proportion of the headcount’s overall cost to the bank. Training may not necessarily reach either a newer generation or functions that typically benefit from a lower-to-mid range compensation package in the industry. Where a senior executive may attend a seminar or conference for a material cost and perceive it as a perk, the same amount could be better spent in domain expertise training for a target population,” he stated. He pointed out the virtues of the Swiss and German banking apprenticeship models that provides: a flexible pool of interims to the industry at all times, subsequent selection aligned to aptitudes and aspirations, greater flexibility for functional shifts within a career and visibly the potential for net talent export.

Dr. Chakravarty further recognized that there is a need for a paradigm shift. “Banking-stakeholders buy-in and affordable training targeting the relevant talent pool can only succeed through a concerted effort of public and private-sector enablers such as ourselves,” he observed.  “The banks do have to consider the costs of high staff turnover which could have been in some instances entirely avoidable by growing staff organizational loyalty and retention measures through training,” he concluded.

Temaswiss is a supporting partner to the prestigious FT ASEAN Wealth Management Summit taking place on 18 November in Singapore. The organization emphasizes on practical skill sets and domain knowledge as versus tertiary-education style programmes. A number of its unique course offerings are available for enrollment: Banker Ethics and Conduct, Banking Unit Audit Preparedness, Cross-Border and Outsourcing Risks. Temaswiss’ flagship Continuous Professional Development (CPD) cluster-courses programme, Mercator 360o Private Banker Certification is also expected to be launched later this month. There has been un-paralleled show of interest from banks in the ASEAN region and Hong Kong for Temaswiss’ tailor-made onsite and offsite programmes covering frontline bankers, middle office and risk management functions.

For inquiries please contact:

Mr. Shanmuga Retnam, Chief Business Officer, Temaswiss Wealth
Gen: +65-6222-9529 DID: +65-6222-9527

Far East Energy Announces Second Quarter Results And Increased Revenue for First Half of 2014

HOUSTON, Aug. 7, 2014 /PRNewswire/ — Far East Energy Corporation (OTCBB:FEEC), the U.S. listed company that operates the Shouyang Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People’s Republic of China, is pleased to announce the filing of its Form 10-Q, for the period ended June 30, 2014. 

For the first six months of 2014, revenues rose 209% compared to the same period in 2013, reaching $2.2 million for the first half of the year.  This performance reflects (1) the strong increase in gas production and gas sales resulting from the 2013 drilling and fracing program and (2) the significant increase in gas prices being received in 2014 compared to 2013.  Compared to a relatively weak 2nd quarter in 2013, revenues for the three-months ended June 30, 2014 increased 324% to $1.1 million.

Gas sales volumes for the six months ending June 30, 2014 averaged 1.35 MMcf/d, up 126% from the same period in 2013, resulting from the newly drilled and fraced wells.  As previously announced, 29 wells in the core Area A production zone were shut-in during the second quarter as being wells located outside the main production area, wells not tied-in to the gas gathering system or wells having ineffective fracs.  Production and sales have remained constant since the beginning of May, despite shutting in these 29 wells in Area A.  A number of these wells are candidates for future recompletions, and should meaningfully enhance production of water and/or gas upon successful recompletion.

Following the previously announced increase in the sales gas price, the average price received for gas sales, inclusive of subsidies and refunds, was $8.87/Mcf in the first half of 2014, up 37% over the same period in 2013.

The company continued to focus on costs during the first half of 2014, and, although direct operating costs rose with the higher production levels, they were down 23% on a per Mcf sold basis, and general and administrative costs were down in total compared to same period in 2013.  The announced well shut-ins will contribute to further cost reductions into the third quarter of 2014, without affecting current production levels.

Commenting, CFO Jennifer Whitley said, “These results show the impact of our 2013 drilling and fracing program, combined with the higher gas price that we are now receiving for our contracted gas sales.  As we continue our ongoing strategic discussions, management is also maintaining its focus on cost controls into the second half of the year.”

ODP
The draft ODP report, which covers Area A, was submitted to the National Energy Administration (“NEA”) of the National Development and Reform Commission (“NDRC”) on June 16, 2014. The NEA is in the process of reviewing the ODP report, and the Company is now awaiting the award of its “Road Pass”.  Area A will exit the exploration period and commence the development period when the ODP receives final regulatory approvals. Final regulatory approval is expected during 2015. Receipt of the “Road Pass” will allow the Company to proceed with the development of Area A while awaiting final regulatory approvals; however, continuing further development and exploration activities does require conclusion of the strategic process currently underway, and on which management is diligently working, in order to provide funding for those activities.

Far East Energy Corporation
Based in Houston, Texas, with offices in Beijing, China, Far East Energy Corporation is focused on coalbed methane exploration and development in China.

Statements contained in this press release that state the intentions, hopes, estimates, beliefs, anticipations, expectations or predictions of the future of Far East Energy Corporation and its management are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. It is important to note that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, including that the amendment to the PSC may not be entered into or if entered into may not be on the same terms as originally agreed upon by the parties. Actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: the preliminary nature of well data, including permeability and gas content; there can be no assurance as to the volume of gas that is ultimately produced or sold from our wells; the fracture stimulation and drilling programs may not be successful in increasing gas volumes; due to limitations under Chinese law, we may have only limited rights to enforce the gas sales agreement between Shanxi Province Guoxin Energy Development Group Limited and China United Coalbed Methane Corporation, to which we are an express beneficiary; additional wells may not be drilled, or if drilled may not be timely; additional pipelines and gathering systems needed to transport our gas may not be constructed, or if constructed may not be timely, or their routes may differ from those anticipated; the pipeline and local distribution/compressed natural gas companies may decline to purchase or take our gas, or we may not be able to enforce our rights under definitive agreements with pipelines; conflicts with coal mining operations or coordination of our exploration and production activities with mining activities could adversely impact or add significant costs to our operations; our lack of operating history; limited and potentially inadequate management of our cash resources; risk and uncertainties associated with exploration, development and production of coalbed methane; our inability to extract or sell all or a substantial portion of our reserves and other resources; we may not satisfy requirements for listing our securities on a securities exchange; expropriation and other risks associated with foreign operations; disruptions in capital markets affecting fundraising; matters affecting the energy industry generally; lack of availability of oil and gas field goods and services; environmental risks; drilling and production risks; changes in laws or regulations affecting our operations, as well as other risks described in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission.

Malaysia Airlines investigation and recovery efforts hampered by shelling: OSCE

7 Aug 2014

Listen /

Aircraft on runway. Photo: World Bank/Arne Hoel (file)

The investigation and recovery effort on the site where the Malaysia Airlines passenger flight was shot down has been hampered because of continued shelling in Eastern Ukraine area. That’s according to the Spokesperson for the OSCE Special monitoring mission to Ukraine who told UN Radio that the shelling creates a climate of fear which makes it difficult to carry out investigative work. The OSCE is the Organization for Security and Co-operation in Europe. The UN has called for a full investigation into the crash of flight MH17, which went down in Donetsk Oblast on 17 July, resulting in the loss of 298 lives. They have also urged armed groups to allow unfettered access to the crash site and ensure that its integrity is maintained. Michael Bociurkiw told Elena Vapnitchnaia that for now, the focus is on recovering the victims’ remains and personal belongings.

Fijian farmers enter lucrative organic papaya market through self-certification

Ripe papaya (IFAD video capture)

A group of 20 young Fijian farmers dream of earning enough money to support their siblings. Their plan? To farm papaya organically and to access the premium price that the organic market pays. But they can only do this if their product is certified organic. With the prohibitively high cost of third party organic certification, they are trying something new. With support from the International Fund for Agricultural Organization (IFAD), these farmers are certifying themselves. And this could change the way organics are certified throughout the Pacific region. Joanne Levitan reports from Fiji.

ITU logo

Australia promotes appropriate broadband technology for developing countries

Developing countries that want to boost Internet access should adopt technologies that are most appropriate to their particular situation. That’s according to Malcolm Turnbull, the Minister for Communications, in Australia. He’s advocating focussing on the goal of increasing broadband connectivity using the best available resources and not necessarily choosing the newest technology. Mr Turnbull has been speaking to Maximillian Jacobson-Gonzalez of the UN’s International Telecommunication Union (ITU). He began by explaining why Australia has invested so heavily in broadband technology.

Presenter: Jocelyne Sambira

Production Assistant: Beng Poblete-Enriquez

Duration: 10’00”

Record Number Of Global Vehicle Debuts Expected At The 2014 Los Angeles Auto Show

— Twenty-five world premieres and 30-plus North American debuts to take place Nov 19-20, 2014 at the Los Angeles Convention Center

LOS ANGELES, Aug. 7, 2014 /PRNewswire/ — Known as the first major annual auto show of the season, the Los Angeles Auto Show (LA Auto Show®) announced today that it expects nearly 60 world and North American vehicle debuts to be unveiled in front of media, analysts, automotive industry executives and lifestyle influencers from around the globe during its Press & Trade Days, November 18-20, 2014.

  • World vehicle debuts from Acura, Audi, BMW, Chrysler, General Motors, Hyundai, Lexus, Mazda, Mercedes-Benz, Scion, Toyota, Volvo and Volkswagen confirmed for Nov. 19-20, 2014
  • Nov. 18-20: Connected Car Expo returns and adds a new Connected City Summit
  • Nov. 19: MPG Motoring invitational and breakfast takes place
  • Nov. 20: Annual Design Challenge returns
  • Press & Trade Days registration and media credentialing now open

This year’s debuts will deliver production and concept vehicles representing the ever-growing luxury, performance, low and zero emission categories.  The debuts range from flagship SUVs and ultra luxury sedans to new compact entries and zero-emission production and prototype debuts.  Among the 25 global premieres scheduled for Los Angeles this year will be models by Acura, Audi, BMW, Chrysler, General Motors, Hyundai, Lexus, Mazda, Mercedes-Benz, Scion, Toyota, Volvo and Volkswagen.  Several other manufacturers have global debut plans but have yet to officially announce publicly.  Vehicle unveilings will be accompanied by important business announcements about alternative fuel strategies, technology partnerships and new product strategies.

Prior to this year’s vehicle debuts, and concluding the Connected Car Expo conference day, registered Press & Trade Day attendees are invited to attend the opening party on the evening of Tuesday, Nov. 18.   The following morning, all are invited to the second annual MPG Motoring Invitational on the morning of Wednesday, Nov. 19.  The annual cars-and-coffee-style celebration will showcase more than 60 automotive icons, collectors and celebrities alongside their prized rides for press and trade to experience before the first unveiling. 

For the second consecutive year, the LA Auto Show’s Connected Car Expo (CCE) will take place in conjunction with Press & Trade Days.  Driven by a new advisory board and Conference Director Andy Gryc, the three-day expo and one-day conference (Tuesday, Nov. 18) will focus on announcing and exhibiting the latest trends and advancements in mobility and connectivity.  Continental, Garmin, Ford and Volvo are among several newcomers on the expo floor, joining OnStar, Hertz NeverLost and Verizon Telematics.  Also new to CCE this year is the Connected City Summit on Nov. 20, a gathering of magistrates and luminaries to address how technology is transforming everything within a modern city – ranging from transportation to infrastructure to safety.

“The LA Auto Show sets the stage for the coming auto show season, where media and executives can gather to see the auto industry’s newest offerings,” said Lisa Kaz, President of the LA Auto Show.  “Los Angeles is where ‘what’s next always comes first,’ and we want this year’s attendees to walk away with the feeling that they’ve experienced the future of transportation technology and performance.”  

Registration and media credentialing for the LA Auto Show Press & Trade Days and Connected Car Expo are now open and can be easily accessed by visiting: http://registration.experientevent.com/ShowLAS141/.

About the Los Angeles Auto Show and Connected Car Expo

The Los Angeles Auto Show was founded in 1907, and is the first major North American auto show of the season each year.  Press and Trade show days for the 2014 Los Angeles Auto Show will be held on Nov. 18-20. The show will be open to the public Nov. 21Nov. 30. The Connected Car Expo (CCE) is the automotive industry’s most comprehensive showcase of new mobility solutions and will take place on November 18, and continue in conjunction with the 2014 LA Auto Show® Press & Trade Days.  The LA Auto Show is endorsed by the Greater L.A. New Car Dealer Association and is operated by ANSA Productions. To receive the latest show news and information, follow the Los Angeles Auto Show on Twitter at twitter.com/LAAutoShow or via Facebook at facebook.com/LosAngelesAutoShow and sign up for alerts at www.LAAutoShow.com. For more information on CCE please visit http://connectedcarexpo.com/

Hashtag: #LAAutoShow

Media Contacts:
Breanna Buhr/Sanaz Marbley
JMPR Public Relations, Inc.
+1 (818) 992-4353
[email protected]
[email protected]