Private Refinery Four Big Coffee Three Quarterly Bulletin Published, China'S Refining And Chemical Integration Project Operation Situation?

2019 is the first year of the commercialization operation of China's refining and chemical integration project. With the gradual operation of the refining and chemical project, the business of the enterprise will extend from the existing middle and downstream industries such as "PTA, polyester filament, polyester staple, polyester chip, polyester chip and CPL" to the upstream "PX, benzene and refining" links, so as to realize the whole industry chain development mode from "crude oil refining to chemical fiber spinning", which is conducive to enhancing the core competitiveness of enterprises. Recently, Hengyi petrochemical, Hengli petrochemical, Rongsheng petrochemical and Dongsheng Hong four private refining and chemical enterprises have announced the first three quarters of the performance, triggering many concerns.

　　 Heng Yi petrochemical

In October 17th, the four largest private refining and chemical enterprises in Hengyi Petrochemical first disclosed the third quarter 2019 report. The report shows that the first three quarters of the company achieved operating income of 62 billion 205 million yuan, a decrease of 6.37% compared with the same period last year, the company's stakeholders said, mainly due to the reduction in the trade business; the net profit attributable to shareholders of listed companies was 2 billion 214 million yuan, down 9.28% from the same period last year, but it has surpassed the total net profit in 2018. Net profit in the third quarter was 937 million yuan, a 9.7% increase over the two quarter.

　　 Data review

Heng Yi Petrochemical Holdings Co., Ltd. Hengyi Industrial (Brunei) Co., Ltd. invested in the construction of "PMB petrochemical project" in the large island of Brunei Dulu Saran, which officially produced qualified products in September 7, 2019. In September 18th, Heng Yi Industrial and Brunei Shell sales company signed an oil sales agreement and renewed the crude oil supply agreement with Brunei Shell oil company. It is expected to contribute to profits in the fourth quarter, and it is estimated that the project will contribute 2 months' full profit in the whole year.

The total investment in the first phase of the project is US $3 billion 445 million, which is not only the flagship project of "one belt and one road" jointly built by Brunei and Brunei, but also the largest foreign investment by Brunei to date. After the completion of the project, the annual crude oil processing capacity will reach 8 million tons. The main products include benzene, gasoline, diesel, aviation coal and so on.

Brunei refining and chemical project is an important step for Hengyi Petrochemical to achieve the international layout of production capacity. Qiu Jianlin, the real controller of Hengyi petrochemical, once said: "the coordinated development of domestic and foreign and upstream and downstream is the main strategy of Hengyi petrochemical company. If the whole chain can be more evenly arranged, it can not only smooth the cycle of the industry, but also produce synergies between the upstream and downstream products. By improving the integrated layout of petrochemical and chemical fiber industry chain, Hengyi Petrochemical will further enhance its ability to resist the risk of cyclical fluctuations.

In addition, Hengyi Petrochemical announced in August 9th that the "400 thousand tons / year caprolactam capacity expansion project" invested by subsidiary Zhejiang baling Hengyi caprolactam Co., Ltd. has been completed and put into operation in the near future. It will enhance the overall profitability of the company and realize the two wheel drive of the industrial chain.

Hengli petrochemical

In October 23rd, Hengli Petrochemical announced the three quarterly report in 2019. In the first three quarters, the company achieved operating income of 76 billion 329 million yuan, a significant increase of 74.14% over the same period last year. The net profit of shareholders belonging to the listed company was 6 billion 817 million yuan, representing a net increase of 86.64%. The cash flow of Hengli petrochemical company has also improved significantly. During the reporting period, the net operating cash flow of the company was as high as 26 billion 624 million yuan, an increase of 368.70% over the same period last year.

　　 Data review

In May 2019, Hengli Petrochemical Industrial Park completed 20 million tons / year refining and chemical integration project, and entered the performance contribution period. This year, the industrial park can achieve an annual output value of 180 billion yuan.

At present, Hengli Petrochemical is concentrating on accelerating the construction of 1 million 500 thousand tons of ethylene (including 1 million 800 thousand tons of ethylene glycol, 720 thousand tons of styrene, 423 thousand tons of polypropylene, 400 thousand tons of high-density polyethylene, 140 thousand tons butadiene, and other domestic scarce, high value-added chemical products), 5 million tons PTA and other heavy heavy projects, of which ethylene project and 2 million 500 thousand tons / year PTA-4 line project is expected to be put into production next month. The 2 million 500 thousand ton / year PTA-5 project, the 1 million 350 thousand ton / year multi-functional high quality textile new material project and the 200 thousand ton / year high performance automotive industrial yarn technical transformation project will also be put into operation next year. All of the above projects are in full swing. Hengli Petrochemical is expected to achieve output value of 300 billion yuan and profits and taxes of 65 billion yuan.

In addition, Hengli Petrochemical also vigorously expand the business space. In October 22nd, the China Civil Aviation Administration issued the "technical standard approval project" (CTSOA) and the "approval letter of the civil aviation oil testing unit" to Hengli refinery. The official approval of the 3 jet fuel of Hengli refining and chemical production was approved through airworthiness and could be put into commercial use. This marks Hengli Petrochemical to acquire the first market access permit for private enterprises, and become the first private refinery in China to have aviation oil production and factory qualification.

Rongsheng petrochemical

In October 28th, Rongsheng Petrochemical released the three quarterly report in 2019. In the first three quarters, the company achieved operating income of 59 billion 658 million yuan, a decrease of 5.36% compared with the same period last year. The net profit of shareholders attributable to the listed company was 1 billion 846 million yuan, an increase of 0.92% over the same period last year. The net operating cash flow of the company was 4 billion 21 million yuan during the reporting period, an increase of 49.32% over the same period.

　　 Data review

Rongsheng Petrochemical is the largest shareholder of petrochemical industry in Zhejiang. The scale of Zhejiang Petrochemical far exceeds that of the largest refinery, Sinopec, Zhenhai Refining and chemical industry in China. Its 40 million ton / year crude processing capacity can reach the top 5 in the world. In 2017, Rongsheng Petrochemical acquired 51% stake in Zhejiang petrochemical, a controlling shareholder holding Rongsheng holdings, and this part of the assets were formally incorporated into the listed company.

Zhejiang Petrochemical is the whole industry chain layout of Rongsheng Petrochemical Company to implement "crude -PX-PTA- polyester filament". It plans to build 40 million ton / year integrated refining and chemical project (divided into two phases), each stage is 20 million ton / year oil refining, 4 million tons / year PX, 1 million 400 thousand ton / year ethylene, 260 thousand tons PC, six standard oil products. In May 21, 2019, the 40 million ton / year refining and chemical integration project (phase I) has completed the preliminary works such as engineering construction, equipment installation and commissioning. The relevant equipment has been put into operation, and the first batch of equipment (atmospheric and vacuum distillation and related utilities) has been put into operation.

Oriental Rainbow

In October 31st, Dongsheng Hong announced the three quarterly report in 2019. In the first three quarters, the company achieved operating income of 18 billion 738 million yuan, an increase of 10.16% over the same period last year, achieving a net profit of 1 billion 189 million yuan attributable to shareholders of listed companies, a significant increase of 52.23% over the same period last year.

　　 Data review

In March 8, 2019, Jiangsu Oriental Sheng Hong Limited by Share Ltd (hereinafter referred to as "Oriental Sheng Hong") announced that the wholly owned subsidiary of Jiangsu Sheng Hong Petrochemical Industry Development Co., Ltd. ("petrochemical industry") and Sheng Hong (Suzhou) Group Co., Ltd. (Sheng Hong Suzhou) and Sheng Hong Petrochemical Group Co., Ltd. (Sheng Hong petrochemical) signed the "equity purchase agreement" in Wujiang District of Suzhou, and the petrochemical industry acquired the 100% equity interest of Sheng Hong refining and Petrochemical Co., Ltd., which was jointly held by Sheng Hong Suzhou and Sheng Hong Petrochemical Company in cash. Through this transaction, Dongsheng Hong will set up the integration project of Sheng Hong refining and refining on the basis of the existing main industry of civilian polyester filament, extending the company's industrial chain from chemical fiber to the whole industrial chain of refining and petrochemical industry.

Sheng Hong refining and chemical (Lianyungang) Co., Ltd. (Sheng Hong refining and chemical) is the main body of the project "Sheng Hong 16 million tons / year refining and chemical integration project" ("Sheng Hong refining and chemical integration project"). The project is listed as a major project in Jiangsu province. It started construction in December 14, 2018 and is in the early stage of construction. It is expected to be put into operation in 2021. After the project is completed and put into operation, the listed company will form a complete industrial chain of "crude oil refining -PX/ ethylene glycol -PTA- polyester - chemical fiber".

The construction scale of Sheng Hong refining and chemical integration project is 16 million ton / year oil refining, 2 million 800 thousand ton / year PX, 1 million 100 thousand ton / year ethylene, including land project, supporting terminal project and supporting project. After the completion of the project, it will become the third largest private refinery project after Zhejiang Petrochemical and Hengli refinery. The production capacity of 16 million tons / year is a single scale, so the project is expected to become the largest energy refining capacity of the domestic monomer when the project is completed. At the same time, 2 million 800 thousand tons / year PX capacity will solve the PTA raw material supply problem of Honggang petrochemical company.