Super! Sinopec'S State Owned Oil Products Export Qualification

Rongsheng Petrochemical Co., Ltd. (hereinafter referred to as "Rongsheng petrochemical") issued an announcement on July 13 that the company recently received the reply from the Ministry of Commerce, agreeing to grant the non-state-owned export qualification of refined oil products of Zhejiang Petrochemical Co., Ltd. (hereinafter referred to as "Zhejiang Petrochemical").

Rongsheng Petrochemical said that receiving the approval of non-state-owned oil export qualification enables the company to further explore the international market, accelerate the promotion of brand influence and competitiveness, and pursue the maximization of interests, which has a positive impact on daily operation.

According to Yi Ming, an analyst at Everbright Securities, Zhejiang Petrochemical's main shareholder, Rongsheng petrochemical, a holding company, has 13.5 million tons of PTA capacity and will reach 20 million tons in the long term. Rongsheng Petrochemical also has 2.55 million tons of polyester production capacity, and continues to increase. Tongkun, another shareholder, has a PTA capacity of 4 million tons, which will reach 9 million tons in the long term, and 6.4 million tons of polyester production capacity, which will reach 10 million tons in the long term.

In addition, Rongsheng Petrochemical also has a 2 million tons aromatics unit (including 1.6 million tons of PX) in Ningbo CICC, which adopts the fuel oil and naphtha feeding route. If the upstream refining end can be opened, the Sinopec can also expand into a set of refining and chemical integration unit.

On the downstream side, Zhejiang Petrochemical adopts the mode of cooperation to further explore the deep processing of chemical products and enhance the added value of products.

Zhejiang Petrochemical and Demei chemical established Derong chemical (50:50) to carry out deep processing of 500000 tons ethylene cracking C5 and 480000 tons cracking C9 of Zhejiang Petrochemical Project. The project will build 500000 T / a cracking C5 separation unit, 200000 t / a C5 hydrogenation unit, 480000 T / a cracking C9 separation and hydrogenation unit, 70000 T / a pentadiene resin unit, 100000 t / a DCPD resin hydrogenation unit and 60000 T / a C9 cold polymer resin unit. Zhejiang Petrochemical and BP plan to build an acetic acid plant with an annual output of 1 million tons at a ratio of 50:50, and will adopt the cativaxl technology of BP.

In the second quarter of 2020, the company's net load of crude oil will fall by about 130% in the second quarter of this year, and the crude oil import and export volume of Sinopec will increase by about 110% in the first quarter of 2020 The environmental performance will be greatly improved.

From the perspective of refinery capacity planning, after the completion of phase II, Zhejiang Petrochemical will be far more than that of Formosa Plastics. After the completion of phase III, it will reach the scale of India's sincerer refining and chemical industry plate, and will have greater production capacity in chemical products and extend deeper downstream. From the perspective of industrial chain supporting, Zhejiang Petrochemical is also superior to Formosa Plastics and India sincerer in the downstream polyester industry chain matching and industrial cluster.

According to Fu Kaiming, from the perspective of pb-roe situation of Asian refineries in the past 10 years, the roe level of Japanese refineries is the lowest, followed by Korean refineries, and the roe levels of refineries in India and China are higher. From our understanding of various sectors of private refining and chemical industry, the roe level of polyester and PTA plate in the past was about 10%, while the roe level of private large refining and chemical projects is expected to increase to more than 20%. The Pb level of private refineries should be higher than that of other refineries in Asia.

Judging from the observation, Zhejiang Petrochemical is still expected to increase the production capacity of phase III and become the world's top two flagship refineries. Zhoushan green petrochemical base will be a large petrochemical base with global competitiveness. From a global perspective, only India's sincerer refining and chemical plate has the scale of Zhejiang Petrochemical, but in terms of chemical product proportion and processing depth, Zhejiang Petrochemical has more advantages. Zhoushan base will be the benchmark base of China's refining and chemical industry, with broad development space.

According to the financial report, in 2019, the refining, aromatics, ethylene and downstream chemical units of the first phase project of Zhejiang Petrochemical Company have been put into full commissioning, the whole process has been opened up, stable operation and qualified products have been produced. During the reporting period, Zhejiang Petrochemical achieved a total operating income of 3.31 billion yuan, including 2.62 billion yuan from refining products, 290 million yuan from consumption tax, and 670 million yuan in net profit.

Zhang Xixi, a researcher at Tianfeng securities, believes that Rongsheng Petrochemical's core focus in 2020 is refining and chemical business: on the one hand, Zhejiang Petrochemical Project Phase I is expected to further fully release its profits after the load climbing and fixed assets transferring period; on the other hand, the sharp drop of crude oil is good for refining and chemical enterprises. After digesting the high price crude oil, the refinery benefits are expected to enter the dividend period, mainly including Saudi Arabia The OSP official price has greatly reduced the profits and crude oil costs of Asia Pacific refineries. The decline of petrochemical products price is far less than that of crude oil. The expansion of processing price gap and the "floor price" policy of refined oil in China have brought potential excess benefits.

According to the public data, Rongsheng Petrochemical is one of the leading enterprises in the petrochemical and chemical fiber industry with the leading comprehensive strength in China. Since landing in the capital market in 2010, Rongsheng has been developing at a high speed and improving the industrial chain from bottom to top. The production capacity of PTA and polyester equity was expanded in an orderly manner; in 2015, Sinopec aromatics project was put into operation, and the whole industrial chain of "aromatics PTA polyester spinning texturing" was opened; by the end of 2019, the first phase of Zhoushan refining and chemical project (51% equity) of Zhejiang Petrochemical Company, a holding subsidiary, was fully put into operation, with the production capacity of 20 million tons / year of oil refining, 4 million tons / year of PX and 1.4 million tons / year of ethylene, and the petrochemical industry chain entered a new stage It is beneficial to reduce production costs, improve profitability, and greatly enhance Rongsheng Petrochemical's market position and operation stability.

According to the financial report, Rongsheng Petrochemical realized an operating revenue of 87.310 billion yuan in 2020, a decrease of 4.5% compared with the same period of last year. The net profit attributable to shareholders of listed companies was 2.222 billion yuan, an increase of 38.27%; in the first quarter of 2020, Rongsheng Petrochemical realized an operating income of 21.05 billion yuan, a year-on-year increase of 27.9%, and a net profit attributable to its parent company of 1.23 billion yuan, a year-on-year increase of 102.6%.