Among the listed chemical companies, the four private petrochemical giants, Rongsheng Petrochemical, Tongkun Petrochemical, Hengli Petrochemical, and Hengyi Petrochemical, actively implement the refining and chemical integration strategy, and their performance is very eye-catching. They are also known as China Refinery Transform into four little dragons.
In 2019, domestic large-scale private refining and chemical companies ushered in the first year of production. Hengli Refining and Chemical, Hengyi Brunei, and Zhejiang Petrochemical Projects were put into full production one after another. In the first quarter of 2020, the sharp fall in oil prices coupled with the epidemic caused weak downstream demand. PetroChina and Sinopec suffered losses. However, private refineries relied on their low-cost competitive advantages to buck the trend and achieve significant growth in performance. In the first quarter, Hengli Petrochemical and Rongsheng Petrochemical , Hengyi Petrochemical achieved net profits attributable to parent companies of 2.14 billion yuan, 1.23 billion yuan, and 810 million yuan respectively, representing year-on-year increases of 324%, 103%, and 83% respectively.
The semi-annual report is a summary of the operating performance of a listed company in the first half of the year, and it is also an “examination paper” submitted by the listed company to investors. As of August 31, except for Baofeng Group, Qianshan Tui, and Saturday, which were unable or delayed to release financial reports due to their own reasons, a total of 3,972 listed companies disclosed financial data for the first half of the year. Affected by the epidemic, the overall profitability of listed chemical companies is “green, red, and thin.”
In the first half of the year, the total main operating income of Rongsheng Petrochemical, Tongkun Petrochemical, Hengyi Petrochemical, and Hengli Petrochemical was approximately 178.4 billion yuan, and the net profit was 11.64 billion yuan. Only Tongkun Co., Ltd.’s main business and net profit both declined.
Rongsheng Petrochemical’s explosive performance in the first half of the year was mainly due to the increase in profits from the refining and chemical segment. Data show that in the first half of the year, Rongsheng Petrochemical held 51% of Zhejiang Zhejiang Petrochemical Co., Ltd., achieving operating income of 27.541 billion yuan and net profit of 4.489 billion yuan. The core asset of Zhejiang Petrochemical is the “40 million tons refining and chemical integration project”. This project was launched in 2014 under the background that the State Council clearly proposed that “the refining and chemical integration project of the petrochemical base determined by the national plan is open to social capital” to solve the problem of PX The problem of raw materials being seriously restricted by foreign countries arose.
In 2019, the new domestic PX production capacity was nearly 10 million tons, a year-on-year increase of 71%, and import dependence dropped to 50.5%. In the next two years, after new projects are put into production one after another, the production capacity will reach 3810 10,000 tons, by then my country will be completely self-sufficient in PX. As private large-scale refining and chemical companies enter the launch period from 2019 to 2020, private large-scale refining and chemical companies are ushering in good development opportunities. The four small private refining companies are Hengli Petrochemical (20 million tons of refining and chemical projects are fully put into operation), Tongkun Co., Ltd., and Hengyi Petrochemical ( PX has been put into full production) and Rongsheng Petrochemical (PX has been put into full production) have undoubtedly opened up room for growth. </p
