Universal Bioenergy Moves Forward in Joint Venture for Global Energy Trading & Forecasts Sales of $100 Million & Profits of $...
April 29 2014 - 11:15AM
Marketwired
Universal Bioenergy Moves Forward in Joint Venture for Global
Energy Trading and Forecasts Sales of $100 Million and Profits of
$20 Million
IRVINE, CA--(Marketwired - Apr 29, 2014) - Universal Bioenergy
Inc., (OTCQB: UBRG), a publicly traded independent diversified
energy company, that markets and distributes natural gas,
petroleum, coal and electricity, is moving forward in its
discussions and contract negotiations for a joint venture with a
company to develop a global energy order fulfillment platform. The
companies plan to engage in the physical and financial purchasing,
sales and trading of natural gas, electricity, petroleum and
related energy commodities to generate greater revenues and
profits.
Universal Bioenergy is forecasting that an estimated $100
million in annual revenues could be generated through the joint
venture from the financial trading from the energy contracts. The
estimated profits from the joint venture are in the 2% to 20%
range, or an estimated $2 to $20 million annually. Final contract
negotiations are ongoing to finalize the terms of the joint venture
and a definitive agreement.
Due to recent changes in part to the sweeping Dodd-Frank
financial regulatory overhaul and the Volcker Rule, the Company is
positioning itself to take financial advantage of the new
opportunities in the marketplace for financial trading of energy
contracts.
The proposed joint venture partners are positioning themselves
to purchase and sell energy commodities in North America, Europe
and the global energy markets. The parties plan to utilize highly
experienced energy traders to engage in the physical and financial
trading of natural gas, electricity, petroleum, diesel fuel and jet
fuel. 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.
To hedge against the associated risks of physical and financial
trading, the parties may use financial derivatives and other
contracts. The portfolio of energy contracts will emphasize the
purchasing of energy product commodities such as natural gas,
petroleum, diesel fuel, 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.
Universal's Senior Vice President Solomon Ali says, "We feel
very strong about this proposed joint venture in the buying and
selling of energy commodities and futures contracts. The energy
commodities order fulfillment platform has already been designed,
built and is being tested. We are forecasting $100 million in
annual revenues for the Company from this joint venture. The
potential earnings for Universal is estimated at $2 to $20 million
annually. Although we cannot guarantee an actual valuation,
according to industry valuation standards using average P/E ratios
from Standard & Poor's, at a multiple of 15 times earnings, a
valuation of $30 to $300 million dollars is an estimate of the
potential additional market value of the earnings to Universal. We
feel this should have a very positive impact on our stock price and
our shareholders."
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