Hengyi Petrochemical Profit In The First Three Quarters Of 2 Billion 214 Million Yuan, Brunei Refinery Project Is Expected To Be The Next Quarter Earnings Growth

In October 18th, Heng Yi Formosa Petrochemical Co (hereinafter referred to as "Hengyi petrochemical" or "company") issued the third quarter report in 2019. The bulletin showed that the company achieved operating income of 62204755208.32 yuan during the reporting period, down 6.37% from the same period last year, and realized net profit of 2213626783.79 yuan attributable to shareholders of listed companies, down 9.28% compared to the same period last year. The net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 1900882279.02 yuan, down 6.79% from the same period last year. In the third quarter, the operating income of the 20475258083.43 quarter was 20475258083.43 yuan, a year-on-year decrease of 11.63%; the net profit attributable to shareholders of listed companies was 936829830.81 yuan, down 21.92% compared with the same period last year; the net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 828995924.20 yuan, down 22.23% compared to the same period last year.

On Brunei PMB petrochemical project progress, three quarterly report shows that in July 12, 2019, Brunei PMB petrochemical project entered a comprehensive trial run. In September 7, 2019, Brunei PMB petrochemical project produced qualified products.

It is understood that Brunei refinery project is the first private refinery project implemented by Hengyi Petrochemical Company to achieve the international layout of production capacity and the implementation of China's "one belt and one road" initiative. It is a model to promote Sinopec's technological standards to go abroad and become a model for Sinopec to "go out". It is also the largest industrial investment project in Brunei and promotes Brunei's major project to achieve local industrialization of oil and gas resources.

As the project goes into operation, the company's business will extend from the existing middle and downstream industries such as "PTA, polyester filament, polyester bottle, polyester chip and CPL" to the upstream "PX, benzene and refining" link, and take the lead in achieving the balanced development mode from "crude oil refining to polyester and nylon double chain" in the industry, which is conducive to the integration of the company's industry, products and assets, globalization and balanced operation. It is conducive to enhancing the company's continued profitability and risk resisting ability, and is conducive to further consolidating, upgrading and optimizing the core competitiveness of the company, and promoting the sustained and stable growth of the interests of shareholders.

According to Haitong Securities Limited by Share Ltd Research Fellow, Brunei phase I refining and Chemical Project Atmospheric and vacuum distillation unit output qualified products. Brunei phase 1 crude oil processing capacity of 8 million tons / year, including annual production of 1 million 500 thousand tons of aromatics, 500 thousand tons of benzene and nearly 6 million tons of gasoline, diesel, coal and other products, in September, 6 daily decompression device officially produced qualified products. It is expected that Brunei phase I is expected to be put into operation in the fourth quarter, which will help to replenish upstream raw materials, enhance profitability and resist risks.

Statistics show that Hengyi Petrochemical is the world's leading manufacturer of PTA and PET fibers. The main products include PTA, ginseng holding capacity of 13 million 500 thousand tons, caprolactam (CPL) production capacity of 300 thousand tons, polyester (PET) chips, bottle flakes and polyester preoriented yarn (POY), polyester drafting yarn (FDY), polyester elastic yarn (DTY), staple fiber and other differential products, and ginseng holding capacity of 4 million 100 thousand tons. Polyester products are widely used and are closely related to the needs of the national economy and the people's livelihood. They are mainly used in textile, clothing, home textiles and industrial applications. In the field of differential and high value added products, the company's "Yitai Kang" products without antimony, environmental friendly polyester chips and fibers, cationic polyester chips and fibers, super high elastic fibers, imitation rabbit hair fibers, special-shaped silk, color silk, mother silk, yam silk, Yilong silk and Yilai silk have begun to take shape.