Recently, Hengli Petrochemical, Rongsheng Petrochemical, and Hengyi Petrochemical have successively released their 2023 performance forecasts.
On January 29, Hengli Petrochemical announced its 2023 annual performance increase announcement.
According to the announcement, Hengli Petrochemical is expected to achieve a net profit attributable to shareholders of the listed company of about 6.9 billion yuan in 2023, a year-on-year increase of about 197.63%. It is expected to achieve a net profit after deducting non-attributed profits of about 5.64 billion yuan, a year-on-year increase of 439.57%. about.
Judging from the petrochemical companies that have announced performance forecasts, Hengli Petrochemical’s profitability has improved significantly year-on-year and leads the industry.
In the announcement, Hengli Petrochemical said that on the one hand, as crude oil price fluctuations stabilize and benefit from the improvement in supply and demand fundamentals of refining capacity under the global “carbon neutrality” background and the strengthening of downstream demand support, the company’s aromatic products, oil products, etc. The spread of leading refining and chemical products has widened and profits have improved significantly, and the industry continues to maintain good prosperity. The overall cost environment faced by the company has stabilized and downstream demand has gradually improved. On the other hand, benefiting from the downward trend in coal prices, the company has continued to maintain a good position in the refining and chemical industry. The unique competitive advantages of deep coupling of oil and coal and complete public supporting facilities are further highlighted. In addition, as the impact of geopolitical events on crude oil prices weakens and the coal price center stabilizes, the company’s competitive advantage on the cost side will continue to strengthen. The downstream new material project will reach production as scheduled and will complete the “last mile” of Hengli Refinery. As the chain improves, the company’s profitability will accelerate to a reasonable level in 2024.
On January 31, Rongsheng Petrochemical released a performance forecast, predicting that the net profit attributable to shareholders of listed companies in 2023 will be 1 billion to 1.2 billion yuan, a year-on-year decrease of 64.07% to 70.06%; basic earnings per share are 0.1 yuan to 0.12 yuan. The main reason for changes in performance is daily operations.
The announcement shows that in 2023, the dual factors of sluggish market demand after the epidemic and geopolitical spillover effects will lead to a slow recovery of the petrochemical industry’s benefits. Rongsheng Petrochemical relies on large-scale integrated refining and chemical units to optimize energy utilization and continue to tap potential and increase efficiency. With the world’s largest aromatics production capacity and unique domestic and foreign refined oil sales channels, the company’s performance has shown obvious signs of improvement. The company continues to promote new material projects and continues to optimize project plans according to the market. With the recovery of downstream demand, the competitive advantages brought by high value-added products in projects under construction can further build the company’s moat, and in the global dual-carbon context, it is conducive to better realizing the company’s low-carbon and healthy development.
From January to June 2023, the operating income of Rongsheng Petrochemical is composed of: the petrochemical industry accounts for 90.66%, the chemical fiber industry accounts for 4.75%, and others account for 4.58%.
On January 31, Hengyi Petrochemical released its 2023 performance forecast. The company achieved a net profit attributable to shareholders of listed companies of 39,500-415 million yuan, turning losses into profits year-on-year.
The specific reasons are as follows:
1. During the reporting period, downstream demand in Southeast Asia continued to recover, the price difference of refined oil products in the Singapore market rebounded and stabilized, the supply and demand pattern of aromatic products such as PX and benzene improved, and the product price difference increased year-on-year; the company reviewed the situation, adapted to market changes, and actively implemented the Brunei The technical transformation and upgrading work of the Phase I refining and chemical project and the optimized and adjusted product structure have effectively enhanced the core competitiveness of the Brunei Phase I refining and chemical project and laid a solid foundation for future efficiency improvement.
2. During the reporting period, with the steady growth of the domestic economy, domestic and foreign terminal demand continued to stabilize and improve, and the price differences of various polyester fiber products were significantly repaired. At the same time, excipient costs, energy costs, logistics costs, etc. have declined. Taking this opportunity, the company continues to increase the technological transformation of the polyester segment, increase the proportion of differentiated products, and actively implement strategies to reduce costs and increase efficiency. During the reporting period, the company’s polyester products achieved booming production and sales, with various indicators improving steadily and profitability significantly improving.
3. During the reporting period, it is estimated that the company’s non-recurring gains and losses will have an impact on net profit of approximately 350 million yuan, mainly due to comprehensive income such as government subsidies and investment income.