China's oil and gas companies' profits soar, but chemical companies' profits fall

In the first half of this year, the international oil price trend has been very up and down. Under the influence of multiple factors such as intensified geopolitical conflicts, market panic and the shadow of economic recession, the performance of Chinese petrochemical companies has been generally affected.

China National Petroleum (performance forecast): the first half to earn 80 billion net profit up to 60% advance

July 15, China National Petroleum released the first half of the performance forecast, is expected to increase the first half of the net profit attributable to the mother of 26.5 billion ~ 32 billion yuan, the same period last year was 53.036 billion yuan. Based on this, the company expects first-half net profit attributable to the mother of 79.536 billion to 85.035 billion yuan, an increase of 50% to 60% year-on-year.

PetroChina said that the main reason for the advance in performance is that the company has increased its oil and gas exploration and development efforts, actively promoted the increase in reserves and production, adhered to quality and efficiency and low-cost development, as well as the rise in international oil prices, crude oil and natural gas production and sales increased year-on-year. If we take the upper limit of 85 billion yuan of net profit after the pre-increase, the net profit achieved by PetroChina in the first half of this year has reached 92% of the full-year net profit in 2021.

PetroChina also said in the interactive platform recently that during the "14th Five-Year Plan" period, the company will scale up the development of geothermal, scenic power generation, scenic gas power integration development, strengthen the strategic layout of hydrogen, new materials, CCS/CCUS, new energy services support, advance reserve a number of key core technologies, focus on promoting the construction of six bases, built New energy and new materials new business organization and management, technical support and industrial system. By 2025, the total amount of new energy development and utilization will reach 23.5 million tons of standard coal, with a production capacity of 7%.

CNOOC (earnings forecast): First half net profit increased by about 118% year-on-year

On July 14, CNOOC Limited disclosed its first interim results forecast after landing on A-share. In the first half of this year, CNOOC's net profit attributable to shareholders of the parent company is expected to be 70.5 billion to 72.5 billion yuan, an increase of 37.2 billion to 39.2 billion yuan compared with the same period of the previous year, an increase of about 112% to 118%; net profit excluding non-recurring gains and losses is expected to be 69.8 billion to 71.5 billion yuan, an increase of about 115% to 120%.

The announcement said that in the first half of this year, international oil prices rose sharply, the company seized the favorable opportunity to continue to increase exploration and development efforts, increasing reserves and production significantly. The company also strengthened its cost advantage by firmly promoting quality improvement and cost reduction. Thanks to the high international oil price, production growth and cost control, the profit level in the first half of the year increased significantly. CNOOC's net profit in the first half of this year exceeded that of the whole of last year. According to the company's previous results disclosure, it achieved a net profit attributable to shareholders of the parent company of 70.3 billion yuan in 2021, an increase of 181.7% year-on-year, reaching the highest level in history.

Hengli Petrochemical: revenue 119.155 billion yuan, net profit decreased by 7% year-on-year

On August 15, Hengli Petrochemical Co., Ltd. released an announcement saying that in the first half of 2022, the company achieved revenue of 119.155 billion yuan, up 13.94% year-on-year; net profit of 8.026 billion yuan, down 7.13% year-on-year.

The announcement shows that relying on the upstream raw material advantage, Hengli Petrochemical actively laid out the fields of lithium diaphragm, electrolyte, PET copper foil and solar photovoltaic backsheet film in the first half of the year. At present, the annual output of 800,000 tons of functional film and functional plastic project of its Jiangsu Kanghui New Material Technology Co., Ltd. and the new lithium diaphragm project in Nantong are in orderly progress. In addition, Hengli Petrochemical invested in the construction of 1.6 million tons/year of high-performance resin and new materials project is expected to be put into operation in the second quarter of next year. Meanwhile, the second phase of BDO project and spandex project in Fine Chemical Park is steadily progressing and is expected to be put into production gradually in the second half of next year.

Wanhua Chemical: Profit 10.222 billion yuan, down 22.53% year-on-year

Wanhua Chemical announced its semi-annual report in the evening of July 28, the company achieved operating revenue of 89.119 billion yuan in the first half of the year, up 31.72%; net profit attributable to the mother of 10.383 billion yuan, down 23.26%; net profit attributable to the mother of 10.222 billion yuan, down 22.53%. The main reason for the increase in revenue but not profit is the increase in raw material prices.

In the first half of the year, international crude oil, natural gas, coal and other basic energy prices remained high due to geopolitical factors and the impact of the New Crown Pneumonia epidemic. Against the backdrop of the significant increase in upstream raw material prices, chemical demand was somewhat suppressed. Rising raw material prices pushed up the year-on-year sales prices of the company's main products, while new production capacities such as PO/SM and polyether went into operation as well as sales growth in overseas markets. However, affected by the significant increase in crude oil, natural gas, coal and other basic energy prices, the company's main chemical raw materials, EBC energy costs increased significantly year-on-year, operating costs increased by 50.94%, the main product gross margin fell year-on-year.

Rongsheng Petrochemical: revenue of 147.628 billion yuan net profit decreased by 18.27% year-on-year

The financial report released on August 17 shows that the company's first half-year "revenue increase but not profit": revenue of 147.628 billion yuan, an increase of 74.88%; net profit attributable to shareholders of the listed company was 5.367 billion yuan, a decrease of 18.27%.

Compared with the same period of the previous year, Rongsheng Petrochemical refinery products and chemical products operating income for the period increased by about 74.12%, mainly due to the subsidiary of the beginning of the second phase of the Zhejiang Petrochemical project put into operation, the corresponding operating income increased; PTA operating income increased by about 214.42%, mainly due to the subsidiary of Zhejiang Yisheng new materials in the second half of 2021 began production.

Baofeng Energy: revenue of 14.395 billion yuan, up 37.53% year-on-year

In the evening of August 9, Baofeng Energy released its semi-annual report for 2022. In the first half of the year, the company achieved revenue of 14.395 billion yuan, an increase of 37.53% year-on-year; deducted non-net profit of 4.278 billion yuan, an increase of 10.54% year-on-year; operating cash flow of 5.596 billion yuan, an increase of 10.77% year-on-year; the company has always maintained a significantly lower debt ratio operation than its peers, with a 36.62% gearing ratio in the first half of the year.

In the first half of the year, Baofeng Energy's 3 million tons/year coke project has been put into operation, and its total coke capacity has reached 7 million tons/year. The first batch of 30 sets of electrolytic water hydrogen production equipment of Baofeng Energy has been put into operation, and now it has 300 million cubic meters/year of green hydrogen production capacity, and the capacity will reach 600 million cubic meters by the end of the year, which is the largest green hydrogen production plant and supplier in the world.

In addition, Baofeng Energy's Phase III 1 million tons/year olefin project is progressing smoothly, of which the 250,000 tons/year high-end product EVA project will be put into operation next year, which is worth looking forward to. The third phase of coal to methanol project is expected to be put into operation at the end of this year, and Baofeng Energy's methanol output will exceed 6 million tons/year by then.

Jinfa Technology: Revenue of 19.4 billion yuan, net profit down 49.26% year-on-year

On August 15, Jinfa Technology released its 2022 semi-annual report, achieving revenue of 19.467 billion yuan, up 0.93% year-on-year; net profit attributable to shareholders of the listed company was 802 million yuan, down 49.26% year-on-year.

Although the overall performance showed a downward trend, Jinfa Technology said that China's new materials industry is in a critical opportunity period for strategic development. The rapid development of strategic emerging industries such as new energy vehicles, new infrastructure, 5G communication, photovoltaic, VR/AR, etc. has opened up a new track for the company's sustainable high-quality development and injected new dynamic energy. It is disclosed that in the first half of the year, JFST sold 18,800 tons of materials for the main new energy industry, an increase of 50.3% year-on-year. In addition, high-end carbon materials, new energy materials, lightweight materials and other market consumption demand is strong, as the downstream of the new chemical materials field will also be a high growth track.

Lubei Chemical: Revenue of 2.824 billion yuan, up 33% year-on-year

On August 17, Lubei Chemical released its half-year report for 2022. The first half-year revenue was 2.824 billion yuan, up 33.03% year-on-year; net profit attributable to shareholders of the listed company was 109 million yuan. The company said that the reason for the change in performance in the first half of the year was mainly due to the adverse factors such as the domestic and foreign new crown pneumonia epidemic, the international situation and the significant increase in raw materials for products, shrinking downstream demand and price decline.

Hongbao Li: the first half is expected to lose 3.218 million yuan

July 14, Hongbao Li released a preview of the first half of 2022 results, the net profit attributable to shareholders of the listed company for the reporting period loss of 3.218 million yuan, compared with the same period last year from profit to loss.

During the reporting period, weakened consumption due to the epidemic, downstream refrigerator (cabinet) enterprises intermittently stop production or reduce the burden, resulting in reduced sales of rigid foam combination polyether; propylene oxide demand decreased, the operation of the propylene oxide industry is difficult, some enterprises stop production or reduce the burden of loss, the company's propylene oxide production base half-year loss of more than 130 million (the second quarter of the company's decision to build propylene oxide expansion project, Taixing base fixed costs increased (the amount of loss), coupled with logistics affect export efficiency, resulting in a decline in operating income.

Shanghai Petrochemical: First half net loss of about 498 million yuan

On the evening of July 14, Shanghai Petrochemical released an announcement on the first half of this year's performance forecast, saying that the net profit attributable to shareholders of the parent company for the first half of the year is expected to be -498 million yuan to -358 million yuan, which is expected to be a loss compared with the same period in 2021; the net profit attributable to shareholders of the parent company after non-recurring gains and losses is expected to be -464 million yuan to -324 million yuan, which is expected to be a loss.

For the first half of this year's performance is expected to have a loss of the main reason, Shanghai Petrochemical analysis said that the first half of 2022 crude oil prices rose sharply, the chemical products market continues to be depressed, the price of finished products rose less than the rate of increase in raw materials, the company's gross profit decreased.

Jiangsu Sopo: revenue of 4.353 billion yuan net profit fell 50.74% year-on-year

On the evening of July 8, Jiangsu Sopo disclosed its 2022 semi-annual results, showing that the company's revenue in the first half of the year was about 4.353 billion yuan, up 11.08% year-on-year; the corresponding net profit attributable to the company was about 741 million yuan, down 50.74% year-on-year.

Jiangsu Sopo said that in the first half of 2022, the market price of acetic acid and derivatives, the company's main product, decreased year-on-year, and the price of coal, the main raw material, increased year-on-year, resulting in the expected decline in the company's operating results in the first half of 2022.