【SCI View】Hengli Earned a Net Profit of 6.8 Billion

On the evening of October 23, Hengli Petrochemical announced the third quarter report of 2019. In the first three quarters, the company realized the operating income of 76.329 billion yuan, a significant increase of 74.14% Y-O-Y, and realized the net profit attributable to the shareholders of the listed company of 6.817 billion yuan, an increase of 86.64% Y-O-Y. Hengli Petrochemical’s operating cash flow also continued to improve significantly. During the reporting period, the company's net operating cash flow was as high as 26.624 billion yuan, surging by 368.70% Y-O-Y.

In May 2019, the 20 million tons/year refining-chemical integration project of Hengli Petrochemical was fully put into operation and began to make contribution to the company performance. Benefiting from its sustained, stable and efficient operation, the production of the large refining assets has become the main driving force of promoting the rapid growth of the operation scale and profitability of the listed companies in the second and third quarters. In addition, the average price spread in the domestic PTA industry also widened compared with the same period last year, which helped the company's profit growth.

Hengli Petrochemical is focusing on accelerating the construction of 1.5 million tons/year of ethylene project (including 1.8 million tons of MEG, 720,000 tons of styrene, 423,000 tons of polypropylene, 400,000 tons of high-density polyethylene, 140,000 tons of butadiene and other high value-added chemical products in short supply in China), 5 million tons/year of PTA project and other major projects. The ethylene and the 2.5 million tons/year Line 4 PTA project are expected to go into operation next month. In addition, The 2.5 million tons/year Line 5 PTA project, the 1.35 million tons/year multi-functional high-quality textile new material project and the 200,000 tons/year high performance automobile industrial yarn technical transformation project will also be put into production next year. After all the above projects under construction go into operation, Hengli petrochemical is expected to achieve an output value of 300 billion yuan and taxes of 65 billion yuan.

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