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Hengli Petrochemical's net profit in the first quarter increased by more than 300% year-on-year

 Last Update: 2022-08-23
 Source: Internet
 Author: User

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Recently, Hengli Petrochemical Co.
, Ltd.
issued an announcement on the pre-increase in the first quarter of 2020.
It is expected that the net profit attributable to shareholders of listed companies in the first quarter will be about 2.
1 billion yuan, which will increase by about 1.
594 billion yuan compared with the same period of the previous year.
A year-on-year increase of about 315.
02%

The main reasons for the increase in performance are:

The 20 million tons/year refining and chemical integration project invested and constructed by the company officially realized commercial operation in the second quarter of 2019.
During the reporting period, the company, driven by the new business pattern of the whole industry chain of “crude oil-PX-PTA-polyester”, With the refined product business model that integrates upstream and downstream production capacity, it has achieved rapid growth in the revenue scale of listed companies and a significant improvement in profitability.
Load, high efficiency, and smooth operation of production and sales

As the first modern refinery with a capacity of more than 20 million tons built at one time in China, Hengli Refinery has the international leading and domestic first-class process technology level and equipment processing scale, and has domestically difficult to replicate and excellent complete industrial supporting capabilities and industry leading The comprehensive competitive advantage of the company has become the main source of the company's current profit structure and the main driving force for performance growth

High-load operation of the refining and chemical business segment

The reason why Hengli Petrochemical's refining and chemical business can achieve better-than-expected performance in the face of adversity may be due to several factors:

Quickly adjust the product structure, including but not limited to reducing the production of gasoline and related components, increasing the production of PX and ethylene, and reducing the production of jet fuel and increasing the production of diesel-related components;

Hengli Petrochemical's strong sales strength is mainly reflected in the fact that it can still maintain a high production and sales rate in the extremely low environment of the industry to support the high-load operation of refineries and a relatively strong sales mechanism, that is, downstream factories and traders.
Implement the product pre-sale mechanism, and lock the product pre-sale price for up to 2 months in advance to resist the possible inventory loss during the oil price decline cycle;

Considering that Hengli Petrochemical's newly built 1.
5 million t/a ethylene and downstream supporting units have been put into operation at the end of January this year and have produced qualified products, and they have been operating at full capacity for about 2 months, it is not ruled out that the ethylene project in the first quarter has already begun to be used.
The possibility of the refining and chemical business contributing to incremental performance

Over the years, Hengli Petrochemical has gradually developed and extended from downstream to upstream along the polyester chemical fiber industry chain and continuously expanded its business scope to enhance its scale advantage, synergy advantage and core competitiveness.
At present, the company is mainly engaged in polyester industry chain and oil refinery.
block business

It is understood that the polyester base of Hengli Petrochemical is located in Jiangsu, with a total production capacity of 2.
8 million tons

According to the plan, Hengli Petrochemical currently has 4-5 production lines with a total capacity of 5 million tons of PTA under construction.
It is expected to be put into operation in 2020.
According to the average price of PTA and PX in 2019, it is estimated that after the 5 million tons of PTA project is full production It can contribute about 2 billion yuan in net profit

In addition, Hengli Petrochemical's 1.
35 million-ton polyester new material project is planned to be constructed in Henggangsha (Hongbeisha), Binjiang New District, Tongzhou, Nantong City, Jiangsu Province.
It is located in the southwest of Tongzhou District and is close to the north bank of the Yangtze River

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