In the past few days, Zhejiang Petrochemical has continued to have good news. On December 6 and 8, HDPE and PP granulation trials were successfully completed. On December 16, there was another news that: Zhejiang Petrochemical’s newly invested 2 million tons of PX equipment was opened. The whole process, the first ship of PX has been shipped!
The world’s largest oil production company has taken a stake, and the fourth largest shareholder of Zhejiang Petrochemical may “change ownership”!
While the refining and chemical integration project is steadily advancing, the ownership structure of Zhejiang Petrochemical is also constantly optimized. On December 9, Rongsheng Petrochemical issued an announcement to respond to questions raised by the China Securities Regulatory Commission regarding the company’s non-public issuance of shares. It disclosed that Saudi Arabian National Oil Company (hereinafter referred to as “Saudi Aramco”) will invest in Zhejiang Petrochemical’s new refinery. chemical project, and is expected to hold 9% of the equity of Zhejiang Petrochemical. The editor learned that in addition to Rongsheng Petrochemical, several other shareholders of Zhejiang Petrochemical have strong funds. Public information shows that the remaining three shareholders are Zhejiang Tongkun Investment Co., Ltd. (a wholly-owned subsidiary of the listed company “Tongkun Shares”, hereinafter referred to as “Tongkun Investment”), Zhejiang Juhua Investment Co., Ltd. (Zhejiang Provincial State-owned Assets Supervision and Administration Commission) Affiliated enterprises, hereinafter referred to as “Juhua Investment”) and Zhoushan Marine Comprehensive Development Investment Co., Ltd. (an enterprise affiliated with Zhoushan State-owned Assets Supervision and Administration Commission, hereinafter referred to as “Zhoushan Ocean Investment”).
Among them, according to the memorandum of understanding signed by the Zhoushan Municipal Government and Saudi Aramco , Zhoushan Haitou will transfer its shares in Zhejiang Petrochemical to Saudi Aramco. It is reported that Saudi Aramco is the world’s largest oil production company. In 2019, it ranked sixth among the Fortune 500 companies. It also ranked first in the profit list with a profit of US$111 billion, and has strong financial strength. At the same time, Saudi Aramco is my country’s largest crude oil supplier and plays an important role in ensuring my country’s energy security. Data provided by Jinlianchuang shows that in 2018, China imported 58.47 million tons of Saudi crude oil, second only to Russia, accounting for 16% of China’s total imported crude oil, a year-on-year increase of 12%. Rongsheng Petrochemical stated that if Saudi Aramco becomes a shareholder of Zhejiang Petrochemical, it will have sufficient financial strength to fulfill the shareholder’s capital contribution obligations and provide financial guarantee for the implementation of Zhejiang Petrochemical project. In addition, Saudi Aramco can also provide strong support to Zhejiang Petrochemical in terms of crude oil supply. Rongsheng Petrochemical explained that Zhoushan Overseas Investment plans to transfer 9% of Zhejiang Petrochemical’s equity, which accounts for a low proportion of Zhejiang Petrochemical’s registered capital, while the investment proportions of the other three shareholders of Zhejiang Petrochemical will remain unchanged. Therefore, this equity transfer will not affect the equity structure of Zhejiang Petrochemical’s top three shareholders and Rongsheng Petrochemical’s controlling interest in Zhejiang Petrochemical. At present, the resolution of the Zhejiang Petrochemical Shareholders Meeting has stipulated the principles for subsequent capital increases: the subscribed but unpaid portion of the registered capital of Zhejiang Petrochemical shall be paid in full by all shareholders at a price of 1 yuan/registered capital; all shareholders shall pay in accordance with their shareholding ratio. A subsequent capital increase will be made to Zhejiang Petrochemical at the same price and under the same conditions to meet the future funding needs of the second phase project.
The world’s largest oil company has taken a stake in China’s largest private refining and chemical company, and both parties have gained a win-win situation
This time, the world’s largest oil company has taken a stake China’s largest private refining and chemical company, both sides gain something, it can be described as a win-win situation.
Zhejiang Petrochemical has greatly expanded Saudi Aramco’s business in China, including downstream products that are in urgent need of expansion such as aromatics, olefins and polyolefins, polyols, isocyanates and synthetic rubber. Saudi Aramco not only brings abundant funds to Zhejiang Petrochemical, but also ensures sufficient raw materials. At the same time, it may introduce internationally advanced technology and management to Zhejiang Petrochemical. For Zhejiang Petrochemical, this may be more valuable than the 9% stake held by Saudi Aramco. People familiar with the matter said that with the successful listing of Saudi Aramco, it may further seek to be listed on the international market next year, and the location may be Japan or Hong Kong, China. So will there be further cooperation between Rongsheng Petrochemical and Saudi Aramco? A reporter from International Finance News asked Rongsheng Petrochemical. As of press time, no relevant reply had been received. </p
