NINGBO, China, Jan. 27, 2011 /PRNewswire-Asia-FirstCall/ --
Keyuan Petrochemicals, Inc. (Nasdaq: KEYP) ("Keyuan or the
"Company"), a leading merchant manufacturer of various
petrochemical products in China,
today announced that Keyuan's Board of Directors approved the
distribution of an annual cash dividend of $0.36 per share for 2011 to be paid quarterly to
its common stock shareholders at the assigned dates of record.
The first quarter dividend of $0.09 per share will be paid to shareholders of
record as of March 1, 2011, with the
actual distribution occurring on April 15,
2011.
Management agreed to waive their rights to receive cash
dividends with regards to common stock indirectly owned by them. In
addition, PRAX Capital agreed to waive their rights to receive cash
dividends should they choose to convert their preferred stock
before record date. The Board will evaluate future cash dividends
beyond 2011 based on its growth opportunities and financing needs.
"After a thorough discussion with the Board, I am delighted to
announce the decision to pay a cash dividend to our common stock
shareholders," declared Chungfeng Tao, Chairman and Chief Executive
Officer of Keyuan. "It signifies not only a prudent allocation of
capital returns to our shareholders, but also our confidence in
Keyuan's future growth prospects. We are well positioned to
significantly increase our profits and cash flows in 2011 and
beyond. We will continue to maintain an optimal capital allocation
strategy that balances investing for future growth with the ability
to provide consistent returns to shareholders."
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 2009, Keyuan's operations include an
annual petrochemical manufacturing design capacity of
550,000 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, additional storage capacity, a raw material
pre-treatment facility, and an asphalt production facility.
Safe Harbor Statement
This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. For
example, statements about the future use of the proceeds are
forward looking and subject to risks. Keyuan Petrochemicals, Inc.
may also make written or oral forward-looking statements in its
periodic reports to the U.S. Securities and Exchange Commission on
forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. A number of important factors
could cause actual results to differ materially from those
contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, risks outlined in
the Company's filings with the U.S. Securities and Exchange
Commission, including its registration statement on Form S-1, as
amended. The Company does not undertake any obligation to update
any forward-looking statement, except as required under applicable
law.
For more information, please
contact:
Investor Relations:
HC International, Inc.
Ted Haberfield
Executive VP
Tel:+1-760-755-2716
Email:
thaberfield@hcinternational.net
Website: http://www.hcinternational.net
Mr. Andrew Haag
Managing Partner,
USA
Hampton Growth,
LLC
Tel: +1-877-368-3566
E-mail: andrew@hamptongrowth.com
Website: www.hamptongrowth.com
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SOURCE Keyuan Petrochemicals, Inc.