Satellite chemistry: multiple projects are speeding up! Fourth-quarter earnings can be expected

Recently, judging from Satellite Chemical's response to shareholders' questions on the investment platform, most of the satellite chemical ethanolamine, polystyrene, α-olefin and other projects have entered the end of construction or have been completed, and are about to enter trial production; In addition, under the influence of the improvement of the international situation, the price of ethane imported from the United States has returned to the normal low level, and the company's profit in the fourth quarter is expected to rebound
.

Update on project progress

1.
Ethanolamine and polystyrene have been basically completed

On November 24, Satellite Chemical replied on the investment platform that the company's 100,000 tons/year ethanolamine and 400,000 tons/year polystyrene projects were successfully constructed and basically completed
.
At present, due to the impact of the epidemic, it is necessary to carry out trial production
after acceptance by the relevant competent authorities.

2.
α-olefins are planned for trial production by the end of the year, and POE accelerates research and development

On November 24, Satellite Chemical replied on the investment platform that the company has planned α-olefin and POE in the green new material industrial park project, which are one of the new materials of the "stuck neck" to be broken through in China, and POE is essential
in high-end polyolefins, photovoltaic film and other fields.
The company independently developed α-olefins to solve the limitation of POE raw materials, and the Lianyungang Petrochemical Industrial Pilot Plant Project with an annual output of 1,000 tons of α-olefin is expected to complete construction and commissioning and trial production
by the end of the year.
POE research and development is accelerating, and strive to industrialize
α-olefin projects that can be built by themselves as soon as possible.

3.
2 sets of 300,000 tons of carbonate will be put into operation in 2022-2023

The company has an annual carbonate production capacity
of 750,000 tons at the Lianyungang site.
The first unit with an annual output of 150,000 tons is planned to be completed by the end of 2022, and the second plant with an annual output of 150,000 tons is planned to be put into operation in 2023, and the subsequent layout and expansion
according to market demand.

The advantages of the satellite chemical carbonate project include: 1.
The company has the whole industrial chain from raw materials to products, especially the purity of ethane raw materials reaches more than 99%, and the natural endowment of high purity of raw materials is conducive to the production of downstream products with high purity requirements, especially in the field of new energy; 2.
The ethylene oxide required for the production of carbonate is produced by the company, and carbon dioxide is produced in the ethylene oxide production process, which is a green and low-carbon process for capturing carbon dioxide under the requirements of double carbon; 3.
The production of 1 ton of DMC will be by-product 0.
6 tons of ethylene glycol, with significant economic benefits; 4.
The company's current product structure has covered four electrolyte solvents, providing overall solutions
for downstream electrolyte customers.

4.
The EAA project is scheduled to be put into production in 2024

The EAA plant project jointly constructed and operated by the company and Aixkai Integrated Chemical Investment (China) Co.
, Ltd.
is the first EAA plant in China, and the project is progressing smoothly and is expected to be completed
by the end of 2024.

This foreign investment is an important measure for the company to implement the strategy of building a low-carbon chemical new material technology company with lightweight raw materials as the core in a cooperative development mode, accelerate the integration of upstream and downstream industrial chains, and build a layout
of new energy materials, new polymer materials and functional chemicals.

5.
Hydrogen peroxide products are planned to be G3G4 chemical grade

The company has an annual output of 220,000 tons of hydrogen peroxide equipment, which can meet the G1G2 standard, and is the main supplier
of photovoltaic silicon wafer cleaning liquid in East China.
An annual hydrogen peroxide plant with an annual capacity of 250,000 tons is under construction and is planned to be G3G4 grade, which will be sold
as an electronic-grade chemical.

6.
Accelerate research and development such as PAA

Satellite Chemical is conducting research and development around the company's existing industrial chain, such as ultra-high molecular weight polyethylene, polyacrylic acid (PAA) and other products are also in the process of
research and development.

Overseas demand drives export growth

The increase in the export of the company's products is mainly due to the following three reasons: first, the company actively explores overseas markets; Second, the overseas installation time is early, the frequency of maintenance is high, and there are unstable factors; Third, overseas energy prices have risen this year, and the operating rate of overseas installations is insufficient
.

The company's export products mainly include acrylic acid and ester, SAP and ethylene glycol
.
In the future, the company will insist on promoting the development of overseas markets and enhance its share and brand competitiveness
in the global market.

Ethane imports returned to normal low prices, reducing the company's production costs

Ethane is abundant in the United States, and its price elasticity has been weak due to chronic oversupply, which has been at a low level
since ethane was recorded.
This year, affected by the Russian-Ukrainian conflict, the energy shortage in Europe has caused natural gas prices to rise, thereby driving the price of ethane up, and the company judges that this is a short-term market caused by special events
.
Since September 2022, ethane prices have begun to fall sharply, which will effectively reduce the company's main business costs in the fourth quarter, and product price spreads are expected to be greatly improved
.
In addition, falling natural gas prices will also reduce the company's energy costs
.
From the long-term supply of ethane, it is expected to return to normal
.