Universal Bioenergy in Final Contract Negotiations for Joint Venture to Access Global Energy Markets to Trade Over $100 Milli...
April 14 2014 - 1:20PM
Marketwired
Universal Bioenergy in Final Contract Negotiations for Joint
Venture to Access Global Energy Markets to Trade Over $100 Million
in Energy Futures Contracts
Company Plans to Build Energy Powerhouse and Projects up to $20
Million in Profits
IRVINE, CA--(Marketwired - Apr 14, 2014) - Universal Bioenergy
Inc. (OTCQB: UBRG), a publicly traded independent diversified
energy company, is in final contract negotiations for a joint
venture with an energy trading company to develop an energy order
fulfillment platform to engage in the physical and financial
trading of natural gas, electricity, petroleum and related energy
commodities to generate greater revenues and profits. The parties
are in final contract negotiations to finalize the terms of the
joint venture and a definitive agreement.
The Company and its proposed joint venture partner will be
positioned to take advantage of strategic relationships with
investor partners and established commodities traders in North
America, Europe and the global energy markets. The venture partners
plan to leverage their relationships through established energy
traders to engage in the physical and financial trading of natural
gas, electricity, petroleum, diesel fuel, jet fuel and related
energy commodities. The venture partners plan to purchase and
trade energy contracts on the spot and long-term market, and trade
financial futures and power contracts to generate higher revenues,
margins and earnings.
The partners may use financial derivatives and other contracts
to hedge against the associated risks of both physical and
financial trading. This will include a diverse portfolio of energy
contracts, but emphasize on energy commodities such as natural gas,
petroleum, diesel and jet fuel and electricity. The proposed
alliance allows Universal Bioenergy to access a relationship with
an energy trading company that has its own established energy order
fulfillment platform. The Company is projecting that an estimated
$100 million in annual revenues could be generated through the
joint venture from the financial trading from the energy contracts,
and the estimates the profits could be from 2% to 20%, or an
estimated $2 to $20 million.
Universal Bioenergy is a high growth diversified energy company
that is experiencing double-digit growth. On March 6, 2014,
Universal Bioenergy released its fiscal Second Quarter Financial
Results, and announced that its sales were up 12.78%, to $32.57
million over the same period last year.
Universal's Senior Vice President Solomon Ali says, "We are
finally at a major turning point in our history whereby we are
ready to capitalize on new and exciting business opportunities at
Universal Bioenergy. We believe this joint venture for the
physical and financial trading of energy commodities and futures
contracts will give us the right direction and impetus to propel us
to greater revenues, margins and our profitability. A solid
fulfillment strategy could provide long-term financial growth and
bring greater value to our company."
The final terms and conditions of the transaction will be
determined in the definitive agreement, which is subject to, among
other things, final due diligence by Universal Bioenergy, and other
conditions, and approvals by both companies' management and board
of directors. No assurances can be provided that a definitive
agreement will be executed.
About Universal Bioenergy Inc. Founded in 2004, Universal
Bioenergy Inc. is a publicly traded independent diversified energy
company that produces and markets natural gas, petroleum, coal and
propane. We market energy resources to the largest public
utilities, electric power producers and local gas distribution
companies in the U.S., that serve millions of commercial,
industrial and residential customers. We are also engaged in the
acquisition and development of existing or recently discovered oil
and gas fields, leases and surface coal mines. For more information
visit www.universalbioenergy.com
Safe Harbor Statement - There are matters discussed in this
media information that are forward looking statements within the
meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6
under the Securities Exchange Act of 1934, and are subject to the
safe harbor created by those rules. Such statements are only
forecasts and actual events or results may differ materially from
those discussed. For a discussion of important factors which could
cause actual results to differ from the forward looking statements,
refer to Universal Bioenergy Inc.'s most recent annual report and
accounts and other SEC filings. The company undertakes no
obligation to update publicly, or revise, forward looking
statements, whether as a result of new information, future events
or otherwise, except to the extent legally required.
For inquiries contact: Media Relations: Solomon Ali
704-837-5705