RPT-UPDATE 1-PetroChina supplier Wison says chairman 'assisting probe'
(Repeats to media clients)
HONG KONG, Sept 3 (Reuters) - China oil construction company Wison Engineering Services Co Ltd said its chairman and controlling shareholder Hua Bangsong "is assisting relevant authorities" in China who are conducting an investigation after sharp falls in Wison's share price.
Wison, which counts PetroChina among its major customers, did not elaborate on the investigation. It said it issued the statement after Chinese media reports about its business relationship with PetroChina.
Hua was not immediately available for comment. He is founder and chairman of Wison, which has a market value of $1.04 billion. He had a 78.13 percent stake in the firm as of June 30, official filings showed.
Beijing said on Sunday that it was investigating the head of its state assets regulator, a former chairman of PetroChina and parent company China National Petroleum Corp (CNPC), for "serious discipline violations" in what appears to be a deepening crackdown on corruption and a push for reform.
A brief government announcement said Jiang Jiemin was "suspected of serious discipline violations", shorthand the government generally uses to describe graft. The announcement, much anticipated by industry insiders, comes after the government announced last week that four of CNPC's top executives were under investigation for alleged wrongdoing.
Wison, which provides engineering, procurement and construction (EPC) services for petrochemical and refining projects in China, is the first supplier of PetroChina to assist official probes following the announcements.
It has provided EPC services for PetroChina and other domestic and foreign companies like BASF in the past few years. Wison's website shows many members of its board and senior management team are Chinese oil industry veterans, including former officials at CNPC.
The PetroChina projects handled by Wison included refining and petrochemical complexes in the southwestern province of Sichuan and northwestern region of Xinjiang, and a refining project in the northeastern city of Dalian, according to information posted on Wison's website.
In a filing with the Hong Kong stock exchange, Wison said it was operating normally and it will continue to perform its existing contracts, which are "implemented as usual". Its revenue from contracts with PetroChina and its subsidiaries in the first half of 2013 was insignificant, it added.
Wison booked an unaudited profit of 22 million yuan ($3.6 million) on revenue of 2 billion yuan in the first half of this year. ($1 = 6.1196 Chinese yuan) (Reporting by Charlie Zhu; Editing by Anne Marie Roantree, Paul Tait and Chris Gallagher)
- India trims perks for U.S. staff in dispute over envoy's New York arrest
- Washington, DC city council raises minimum wage to $11.50/hr in 2016
- China confirms near miss with U.S. ship in South China Sea
- Mega Millions lottery winning tickets sold in California, Georgia |
- The Fabulously Entrepreneurial Life of Ronnie Biggs