22.11.2007 | Accel Energy: Exclusive Interview with Anthony Chirico, CEO of Accel Energy-Part 1
Accel Energy (ACY; WKN: A0LFLF) has in recent months become a global player molted, in a variety of interesting markets operate. Among other things, it has a strong foothold in the booming China market. About the further plans of the company, we have with corporate chief Anthony Chirico spoken. The steering group knows some very interesting details to report: Among other plans in the foreseeable future a segment shift in the Entry Standard of the German stock exchange to attract new investors, and much more! Read today, the first part of the interview.
INVEST INSIDE: For Accel Energy was in the past two or three months rather calmly. Fortunately, in this time is not really a lot of messages from their companies. What was the reason for this silence?
Chirico: We have decided to implement some changes. That was especially the PR activities. We were with an agency, which for us was not really satisfied. There were also some negative publicity, a few bad headlines about this group. We have this agency and therefore fired us for a new agency decided.
INVEST INSIDE: Does this also to the fact that the price recently went down so far, so much has relented?
Chirico: Yes, I guess. Some of the negative reports on this group is definitely on us. It added, however, that we in the Open Market, the OTC, in Frankfurt. This segment is for many investors, and funds for banks rather uninteresting. These investors expect that at least one in the Entry Standard quoted, so they invest in a company.
INVEST INSIDE: There are also considerations that in the Entry Standard could go?
Chirico: That is our plan. We are therefore just the right partners for this step.
INVEST INSIDE: What time limits exist for this plan?
Chirico: My personal time target, of course, is as soon as possible, preferably tomorrow, I would like in the Entry Standard. But realistically, there are probably 30 days to 45 days, at the beginning of the year could be with this step also. Then we want to be on the Entry Standard.
INVEST INSIDE: They currently have approximately 77 million shares outstanding. That is, the market capitalization of Accel Energy is around 18.5 million euros. However, they had last year a net profit of 6.6 million dollars. This is her company undervalued?
Chirico: That is absolutely correct.
INVEST INSIDE: Last year, they had a turnover of 61.5 million dollars and a net profit of 6.6 million dollars. Where are some forecasts for 2007 and 2008?
Chirico: 2007, we should sales in the amount of 66 million dollars, the profit should be between 6 million and 8 million dollars. A forecast for 2008, we are still not. So we always wait until the fourth quarter. That is, in our industry, so often, there are many factors that play a role. At that time, which often offers to the customer, it gives the orders, and only then can a better prediction of the course of business.
INVEST INSIDE: Where do they currently the focus of their business is in China or in Jordan?
Chirico: The main business is clearly at the moment in China. In Jordan, we are still in the development stage. There, we just opened an office, where we are in the registration process by the authorities. We still need some approvals and then there may also our business.
INVEST INSIDE: So we concentrate initially on China. There they are in a variety of fields. With a partner to operate a refinery in China, which is a joint venture. What is the situation?
Chirico: This refinery is the revenue particularly important to come here most of the money. So long as the oil price continues to rise, our profitability will continue in the height. The production costs that remain on the same level, there are no cost increases. This could be the figures for 2008 very much influence.
INVEST INSIDE: If they say that the price of oil so its figures can influence heavily, then where is the pain threshold down?
Chirico: Exact numbers like I did not publish, particularly in relation to its peers. But the price has to go very far down that he has been somewhere in the range of 30 US dollars to 40 US dollars fall, so that we no longer profitable.
INVEST INSIDE: Which has its refinery capacity?
Chirico: The capacities range from 3 million metric tons.
INVEST INSIDE: You also have in Maoming a big project. Can they here a short update? What is there in the near future to run?
Chirico: The plan is that we will have a Förderbetrieb for oil shale build the 10,000 barrels of oil a day, can be manufactured. These are then 3.2 million barrels a year. With the funding, we rely on two different groups. Here are running the negotiations. The cost to the system of this size to build, are at about 325 million dollars. We are currently in the last stage, in order to obtain this money. In the winter down there, we can not work as much as we are hampered by the cold. But in the spring of the work should be fully there.
The 10,000 barrels, we are not all at once and not just at the beginning promote. That will expire in steps until we reach this maximum promotion, it will be two or three years. The first production will probably end 2008 to be able to promote the maximum will be reached, it will be at least 2010.
INVEST INSIDE: The financial aspects are being negotiated. You should also have good news soon made?
Chirico: Right, because I am hoping for a big Christmas gift.
INVEST INSIDE: to negotiate because they primarily with American banks, with Chinese banks, with institutional investors?
Chirico: Our negotiating partners is primarily an institutional investor from the Middle East.
INVEST INSIDE: How long they feel they can this project in Maoming? What is the capacity there?
Chirico: the rich local capacities for more than 50 years. However, our production capacity even further. If we enlarge the plant, we could also more than the targeted 10,000 barrels a day.
INVEST INSIDE: In summer, they have reported that they lubricant to some shipping lines to sell. What is the feedback of this ship operators?
Chirico: The product is very well received. It had all the positive properties, the operators were looking for. As it stands, this contract has not only extended, it will even be extended. This means that he is not only one year validity will have, as was the case last. In addition, the order volume increased.
INVEST INSIDE: This first contract had a volume of 9 million dollars?
Chirico: Right. But now we want the upcoming contract like double.
INVEST INSIDE: Has because in the industry by now that they have such good products? Have other companies in the area have reported to them?
Chirico: That will still happen. So far, we have not knocked at many doors, but that will change. In China, the ship lines primarily by government agencies. There are only two companies with which it is possible to work. Until now, we are working primarily with one of these companies. We consider, however, that we will also turn to other companies, for example, Hong Kong act.
INVEST INSIDE: The project is not only limited to China. You can also engage internationally, for example in the Philippines or Vietnam? Is it because there already plans?
Chirico: I think, therefore, we will soon take care of. First, we must of course with our current customers. We need to know how much they want, what they order. If they expose the entire production, we can not, of course, more to other companies.
Vietnam and Cambodia are here, but clearly on our list. I was there only a few months and was in charge of the traffic and transport sector spoken. There I first contacts, I have asked for the details of who is responsible for what tasks, such as buying habits, etc. We look feeling is that people in those countries very good business. Many of the large companies are only in the major markets in, after Europe or North America. This is a chance for us.
INVEST INSIDE: You said this internationalization also depends on the production figures. How much can they produce?
Chirico: More than 600,000 tons per year, we can produce. The contract with the Chinese vessel amounted to just around 20 percent of this sum. You can also have a lot on the market.
INVEST INSIDE: In China, there is another project of Accel Energy. There they provide gasoline to about 500 filling stations. It has not last much longer. Is this news?
Chirico: The filling station project, it is a one. This contract is ongoing. Very likely it will also extend, if we agree on the price. Since I am quite confident.
INVEST INSIDE: This is a fixed price, so it from the higher oil prices would not benefit them?
Chirico: If you pre-orders, as in this case, then there is 10 percent surcharge if the price of oil exceeds a certain limit. So, we can still benefit from higher oil prices.
INVEST INSIDE: Is it because of these 500 petrol stations remain or be added more?
Chirico: Hopefully, that number will increase. The Chinese wholesalers, with whom we will cooperate, would like to like to enlarge. Maybe he even reached the mark of 1,000 gas stations, which is his goal. Whether he is actually 500, or only 100 additional petrol stations opened, we can deliver in any case!
INVEST INSIDE: Another project is the slate-asphalt binder. What is there?
Chirico: We are in the process for a further small investment. The aim until spring start production. That would be a perfect timing, because it will take part in the road construction industry to a greater demand. From spring to early autumn, there is the highest demand, then ebbt again.
INVEST INSIDE: Do they have customers for this production?
Chirico: We have a customer, especially for this production. A refinery, which sells asphalt itself, wants to buy up the entire production and its asphalt mix. This would take over the entire capacity.
INVEST INSIDE: Are there other activities of Accel Energy in China?
Chirico: In China, we are still heavily in research and development commitment. Our strategy focuses on the asphalt binder, and the oil from the shale rock. Moreover, projects with universities and research institutes.
INVEST INSIDE: What are their connections to the Chinese government, official bodies? Is there a permanent replacement?
Chirico: There is a very regular communication, we are in constant contact with each other. The course also opens some doors, the other could stay closed. Because we have been there so many years, we have more advantages. Chinese are very concerned about long-sought friendships, which brings us additional advantages. Today many companies go to China, because they are the great hope for riches, but we were already there from the beginning. We have these companies to big advantages: They know us, they trust us, we are already in place for a long time.
INVEST INSIDE: There is, in the next few years, many big events in China: the Olympic Games in Beijing, the Shanghai Expo in, or the Asia Games in Guangzhou. Are they in any way involved in these projects?
Chirico: Not directly, but indirectly, we have received several requests. We aim for some companies that are there to participate in tenders as subcontractors work, as In road.
Read on Monday the second part of our exclusive interview!
ACCEL ENERGY AG