On January 17, domestic petrochemical giant Hengli Petrochemical (600346) released an announcement to the market about its 2019 annual performance increase. Data shows that Hengli Petrochemical is expected to achieve a net profit of 10.9 billion yuan in 2019. The profit has exceeded 10 billion yuan for the first time. Compared with 3.323 billion yuan in 2018, the profit has increased significantly by 228% year-on-year, far exceeding the expectations of all parties.
As for the reason for the expected increase in performance, the announcement stated that during the reporting period, the company’s wholly-owned 20 million tons/year refining and chemical integration project was put into full production and commercial operation in May 2019. As the first modern integrated refining and chemical enterprise in China with a capacity of more than 20 million tons built at one time, it has world-leading process technology, complete industrial supporting facilities, and outstanding comprehensive competitive advantages such as cost, which has become the main source of the company’s current profit structure and the basis for performance growth. Main driving force. In addition, the company’s original PTA and polyester businesses are operating well, which has further increased the company’s profits.
Industry insiders also said that Hengli Petrochemical successfully entered the 10 billion yuan net profit club in 2019, and its large-scale refining and chemical projects played a key role in being the first to be put into operation in the industry. The project includes 20 million tons of atmospheric and vacuum pressure, 11.5 million tons of heavy oil hydrogenation units, 9.6 million tons of reforming units, 4.5 million tons of aromatics units, and 1.3 million tons of mixed dehydrogenation units. Its production scale and technology are world-leading. In addition, it is equipped with self-owned thermal power plants, self-built coal-to-hydrogen co-production methanol and acetic acid units, self-owned crude oil terminals (two 300,000-ton scale), refined oil terminals, crude oil tank farms, etc., and the annual cost savings is expected to be between 30 and 300,000 tons. 4 billion yuan. In addition, the PX and acetic acid produced by the refining and chemical project are directly pipelined to the downstream PTA device of Hengli in the park, which can save a lot of intermediate costs such as import freight, tariffs, and losses every year.
According to industry sources, the world’s largest 1.5 million tons/year ethylene project currently under construction by Hengli Petrochemical has entered the trial production stage. More than 98% of the raw materials for the ethylene project are supplied by upstream refining and chemical projects. The ethylene yield of 48% is the highest in the world, maximizing the scale integration advantages of refining and chemical integration to produce various high-end chemicals such as ethylene glycol, styrene, polypropylene, high-density polyethylene, and butadiene that are in short supply in China. It will greatly enhance the deep processing capabilities and product added value of the Hengli Refining and Chemical Project. In addition, key projects such as the 5 million tons/year PTA project, the 1.35 million tons/year multi-functional high-quality new textile material project, and the 200,000 tons/year high-performance automotive industrial yarn technological transformation are also progressing rapidly. After all the above new projects reach production, Hengli Petrochemical is expected to achieve an output value of 300 billion yuan and profits and taxes of 65 billion yuan.
The value is 300 billion yuan, with profits and taxes of 65 billion yuan. </o:p
