【SCI View】Oriental Energy to Cut LPG Trading

Oriental Energy to Cut LPG Trading

Recently, Oriental Energy published the 2019 semi-annual report, showing that Oriental Energy will cut the LPG trading volume, adjust the LPG deep-processing business layout and actively participate in the development of hydrogen energy.

According to the semi-annual report, the sales value of LPG trading took up 75.25% of the total operation revenue. Moreover, the gross profit rate of LPG sales and LPG entrepot trade was 5.24% and -0.6% respectively. Although the international and the domestic trading volume took a high proportion, the profit of LPG trade was lower than that of LPG deep-processing business. Accordingly, Oriental Energy decides to adjust the business structure and the regional layout, based on satisfying the domestic demand from the LPG deep-processing and downstream retail markets.

In the future, Oriental Energy will gradually cut the LPG trading volume and quit the LPG international and domestic trading markets. Meanwhile, the company will continue to enlarge the capacity at Ningbo Base and Pearl River Delta. Besides, Oriental Energy shows that it will actively participate in the construction for hydrogen energy industrial chain in Yangtze River Delta and Pearl River Delta. According to sources, Oriental Energy has signed strategic cooperation agreement with Maoming Government and Guangdong Junhui New Material Equity Investment Centre to build the Daya Bay hydrogen energy industrial chain with the total investment of 40 billion RMB.

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