Shenghong refining and chemical integration put into production "full moon", but the company's net profit fell by 50% in the first quarter!

Recently, Dongfang Shenghong's newly put into operation refining and chemical integration project has become the focus of the industry's attention, but on the other hand, affected by the fluctuation of crude oil and raw material prices, coupled with the rebound of the epidemic in many places in China, the company's performance in the first quarter has declined significantly.
, At present, the domestic epidemic is basically under control.
After the integration project enters normal operation, it is expected to significantly increase the company's performance.
Whether the company's performance will continue to improve in the later period, let us wait and see
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Risks exist, but integrated projects have many advantages

On May 16, Shenghong Refining & Chemical's 16 million ton refining and chemical integration project was officially put into operation.
Needless to say, the project is of great significance to the company
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According to Dongfang Shenghong, after the integrated project is put into operation, the follow-up work is being carried out according to the work plan
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According to the feasibility study report, the refining and chemical project is expected to contribute an average annual net profit of 9.
4 billion to the company, and it is expected to contribute part of the profit in 2022.
The specifics are subject to the completion of the whole process of the project and the progress of capacity ramping
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However, some institutions have also analyzed the risks faced by the integration project in the later stage
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Essence Securities stated in the risk warning that the project construction and start-up progress is less than expected, the production risk of safety and environmental protection, the risk of repeated epidemics, the risk of sharp rises and falls in crude oil prices, and the risk of demand damage in the context of interest rate hikes
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In the face of project risks and market competition, Dongfang Shenghong said that the 16 million ton refining and chemical integration project has the following advantages: First, the product structure advantage, the oil-to-chemical ratio of the refining and chemical project is 3:7, which is the largest chemical industry in the current refining and chemical project.
The second is the lower cost.
The company's Shenghong 16 million-ton refining and chemical integration project has the largest single-unit production capacity in China and low energy consumption.
The third is the technical advantage.
The technological advancement and other aspects are at the world's advanced level, including energy consumption level, safety measures, environmental protection indicators, etc.
; fourth, the location advantage, the company's refining and chemical projects are located in the seven world petrochemical industry bases, and included in the national "Petrochemical Industry Planning and Layout Plan" , the regional climate is suitable, the park is well equipped, and it is close to the harbor terminal, and the transportation cost is low
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Fifth, the company's unique advantage of "oil head, gas head and coal head" is not available in other large chemical companies, which has laid a solid foundation for the company to achieve cross-cycle and anti-cycle development
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Q1 profit was "Waterloo", can it break through in the later stage?

1 Many factors are intertwined, and the performance in the first quarter declined

However, judging from the company's operating conditions in the first quarter, the company's financial data is not optimistic
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According to the company's financial report, in the first quarter, the company's operating income and net profit attributable to the parent were 13.
773 billion yuan and 688 million yuan respectively, of which the profit attributable to the parent fell by 53.
72% year-on-year
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This is in sharp contrast to the relatively excellent performance in 2021
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Dongfang Shenghong told the "Harbour Business Observer" that the decline in net profit in the first quarter was consistent with the fluctuations of the leading companies in the industry
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There are mainly the following factors: First, international factors: crude oil prices continued to rise, raw material costs rose, while product prices were adjusted back, and the price difference narrowed; second, domestic factors: in the first quarter, there were epidemics in Suzhou and Lianyungang, and The epidemic has rebounded in many places, and the epidemic control measures adopted by various places have had a series of impacts on logistics, resumption of work and production, the transmission of industrial and price chains, and the balance of supply and demand; third, in the first quarter of last year, the company's single-quarter net profit level was the highest.
, correspondingly decreased year-on-year, and in the first quarter, the company increased investment for follow-up development, mainly including increased investment in research and development expenses, and increased expenses incurred in preparing for the commissioning of refining and chemical projects
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2 The company is optimistic about the later performance recovery

Dongfang Shenghong emphasized that, in fact, the profitability of the chemical fiber segment, petrochemical industry, and new material segment is still at a relatively good level in the industry in terms of gross profit margin and gross profit per ton
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Facing the increasingly complex market environment, the company adheres to its own business strategy and competitive advantages.
1.
Adheres to the advanced industrial layout, accelerates its entry into new energy and new materials, and deploys a variety of high-end new materials to ensure corporate advantages and characteristics
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2.
Adhere to innovation-driven development, establish Shanghai Petrochemical Innovation Center and Lianyungang Petrochemical Innovation Center, and increase research and development of new energy and new materials such as high-performance EVA and POE; 3.
Adhere to the business strategy of differentiated competition to ensure the development of its own characteristics and the coordination of various sectors Develop advantages and strengthen its own competitive products; 4.
Adhere to steady capital expenditures, and gradually put in the planned downstream production capacity to ensure high growth in the future
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Dongfang Shenghong continued to say that with the stabilization of crude oil prices and the effective control of the domestic epidemic, local governments have taken active measures, the operating rate and demand of downstream looms have gradually recovered, the unfavorable factors for the development of the industry in the first quarter are being eliminated, and polyester business profits The follow-up is expected to continue to rebound
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In terms of development in 2022, Dongfang Shenghong believes that the company will make every effort to build three major projects such as million-ton EVA photovoltaic new energy materials, million-ton acrylonitrile new materials, and million-ton green degradable materials.
In-depth promotion of the strategic transformation layout of new energy and new materials, guided by differentiation, technological innovation, high added value, and green environmental protection, centering on new energy materials, high-performance new materials, and low-carbon green industries, comprehensively promote the transformation of strategic emerging industries, and build a comprehensive Form a new "1+N" pattern of core raw material platform + new energy, new materials, electronic chemistry, biotechnology and other diversified industrial chains
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However, some market participants believe that, at present, the market in the second half of the year, whether it is international or domestic, is still greatly affected by various aspects, which means that resource-based enterprises such as Dongfang Shenghong, which have a greater impact on fluctuations, are facing The pressure is still not small
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In the second quarter or the second half of the year, can Oriental Shenghong's performance stand out? This certainly deserves attention
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