This year is an extremely difficult year. The peak season is not strong, and the off-season is even weaker. In the third quarter, international crude oil prices fell by about 8%. Since the crude oil price trend will be transmitted to the downstream PTA industry chain, which will lead to a decline in PTA product prices, the impact of the sharp drop in crude oil prices in the third quarter will have a very obvious impact on the entire industry.
Crude oil futures main contract trend chart ↑
From the recently announced September’s economic data can also reveal the numerous obstacles currently faced by the polyester market. In view of the uncertainty of the trade situation, textile and apparel exports in September were US$23.75 billion, a decrease of 9.64% from the previous month. Among them, textile exports were US$8.969 billion, a month-on-month decrease of 7.50%; while clothing and accessories exports were US$14.780 billion, a month-on-month decrease of 10.89%. So under such an environment, what kind of report card will several chemical fiber giants hand over in the third quarter?
On the evening of October 17, Hengyi Petrochemical, as the first company to disclose its third quarter results, released its 2019 third quarter results. Third quarter report. The company achieved operating income of 62.205 billion yuan in the first three quarters and realized net profit attributable to shareholders of the listed company of 2.214 billion yuan, which has exceeded the net profit attributable to the parent company in 2018 of 1.962 billion yuan. At the same time, net profit was achieved in the third quarter of 937 million yuan, an increase of 9.7% compared with the second quarter. Combined with the situation of the polyester market this year and the complex external international situation, it is not easy to achieve such results.
Qiu Jianlin, the actual controller of Hengyi Petrochemical, once said: “The coordinated development of domestic and foreign countries and upstream and downstream is the key to Hengyi The main strategy of petrochemicals. If the entire chain can be arranged in a relatively balanced manner, it can not only flatten the cycle of the industry, but also generate synergy effects between upstream, downstream and horizontal products. By improving the integrated layout of the petrochemical and chemical fiber industry chain, Hengyi Petrochemical The ability to withstand the risk of cyclical fluctuations will be further enhanced.”
Looking forward to the fourth quarter, the contribution of Hengyi’s Brunei refining and chemical project to the company’s profits will become the market’s biggest expectation. After the first phase of the Hengyi Brunei project reaches capacity, it is expected to produce 1.5 million tons of PX, 500,000 tons of benzene, and a total of 6 million tons of chemical light oil and gasoline and kerosene annually. It is understood that the Hengyi Brunei refining and chemical project has officially produced qualified products on September 7 and is expected to contribute profits in the fourth quarter. It is also estimated that the project will contribute 2 months of full production profits throughout the year. Taking into account the project’s strong profitability, Hengyi’s profits in 2019 may further increase.
The supply of refined oil from the Brunei refining and chemical project is not restricted by export quotas and can not only meet Brunei’s domestic demand , the remaining surplus will also be exported to Southeast Asian countries and other international markets nearby through the established Singapore trading company. The sales channels are flexible and the market is broad.
2019 is the first year of commercial operation of my country’s refining and chemical integration projects. The refining and chemical project is an important step for the chemical fiber giant to realize the international layout of production capacity. As the refining and chemical project is gradually put into operation, the company’s business will extend from the existing mid-stream and downstream industries “PTA, polyester filament, polyester staple fiber, polyester bottle flakes, polyester chips and CPL” to more The upstream “PX, benzene and refining” link realizes a balanced development model from “crude oil refining to polyester and polyamide dual-chain”, which is conducive to the company’s global layout, enhances sustainable profitability, and enhances core competitiveness.
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