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Longwei Petroleum Investment Holding Limited Message Board

  • unemon1 unemon1 Dec 6, 2012 11:10 AM Flag

    Huajie Storage - Book value ??? ehhhh?

    The company acquired the assets on Sept 26, 2012... correct?
    I assume therefore that the assets should be reported in the #$%$ for the period ending 30, september 2012 ... correct?

    LPH paid 110m for the Hujiahe facility ... ... without any oil in the thanks ..


    Considering the Land Use Rights were acquired through the Huajie acquisition ... ... the $ paid for the Property palnt and equipment was about (110.6-24.262 = 86.338)

    So ... 86.338 is the worth in the #$%$ attribute to the Huajie facility under Property Plant and Equipment.

    Huajie Facility has a capacity of 100k MT ... resulting in a book value of 863.38$ per MT capacity

    The other 2 facilities have a total capacity of 120k MT ... resulting in a book value of 393.35$ per MT capacity!

    does the Huajihe facility not require any Impairment? ... ... what did the put it into the bookd at a value that is 119% higher than the value assigned the the other two facilities' property, plant and Equipment???

    all have Rail acces ... so that this can not justify the differences! ... then ... the have both undergone mantainance work ... so that impaiments had not to be carried out! ....

    PLEASE ... EXPLAIN Me this difference!!?

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    • It would be nice if some put the plain truth up
      Every one should now that they over paid
      It was a matter of time and location and need
      They new and decided to over pay
      They had cash
      So its not like its going to hurt them
      Makes them a bigger player and long time relation ships

      • 2 Replies to rbtsherman
      • rbtsherman:
        Thank you it is called location, location, location. Just because a house built in Texas is less valuable than one build in let’s say NY city even though it is the same identical house mean the person who bought the NY city house over paid for it, it just means the market is based on that location. Based on the first 20 days of revenue from the Huajie acquisition the price was well worth it.

        Sentiment: Strong Buy

      • Ah ah ah ! ... So now it's good to overpay for something?? ...

        while overpaying for acquisitions they are still able to book the best margin in the industry? ... How is that possible?

        ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah

    • well ... accumulated depreciation on the 2 plants' PROPERTY, PLANT AND EQUIPMENT (exluding hte Huajie) is 10.78M

      so ... the total value in the book for this 2 plants (cleaned of Depreciation) is about 57.988M

      This 2 plants have a Storage capacity of 120k MT

      resulting in a book value of 483$ per MT capacity ... ...

      The Huajie facility is in the books with a PROPERTY, PLANT AND EQUIPMENT value of 863.38$ per MT capacity

      as you can see ... even once the Accumulated Depreciation is taken into account .... the Huajie PROPERTY, PLANT AND EQUIPMENT are still in the book at a value per MT capacity that's 78.67% higher than the PROPERTY, PLANT AND EQUIPMENT per MT capacity value of the two other facilities!

      Did LPH overpay the Huajie Facility? ...

      This findings seem to confirm it .... well ... if you add this to the fact that Shell is building a Facility that will cost them less than 400$ per MT capacity once finished ... .... I wonder why LPH did pay (not considering land right uses) ... 863$ per MT capacity!!!

      I do believe that LPH by building the facility itself would possibly have saved about 40m USD ... mmm ???

      Of course ... I am a retardeD ... I am always wrong!!! so ... Don't trust ME!

    • your brain requires impairment

    • "PLEASE .. EXPLAIN Me this difference!!?"

      You are definitely a refined and educated man. I thought the merchant marine had standards? The recruiting officer must have been smoking medical marijuana when you came through the door lol.

    • remember that only land use rights are subject to amortization .... ... per 10k 2012

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