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
SOURCE: Universal Bioenergy Inc.
Associated Documentation:
Link to submission on http://www.eteligis.com
UBRG_4-14-14_LST_ETL.docx
To unsubscribe from any future mailings, please visit: http://www.eteligis.com/MassMailUnsubscribe.aspx
Copyright eTeligis Inc. 2014. All rights reserved.
0 comments:
Post a Comment