|Financial Highlights (Unaudited):
(Hong Kong, 29 August 2017) China BlueChemical Ltd. (“China BlueChem” or the “Company,” stock code: 03983), a leading chemical fertiliser and methanol producer in China, has announced its unaudited interim results for the six months ended 30 June 2017.
During the period under review, the Company proactively strengthened production and operation management and built up marketing capabilities, with production and sales of urea and those of methanol by CNOOC Tianye reaching a record high for the corresponding periods. The Company realised revenue of RMB5,137 million, an increase of 32.5% from the same period of last year. Gross profit significantly increased by 736% to RMB844 million and profit attributable to owners of the parent was RMB290 million. Basic earnings per share were RMB0.06.
In the first half of 2017, after a series of previous reform, the fertiliser industry in the PRC has been largely marketised featuring the increasingly high environmental standards, the continued low utilisation rates of urea and phosphate fertiliser plants and improved profitability of the industry. Regarding methanol, affected by the demand and supply equilibrium, futures prices and arbitrage among regional markets, domestic methanol price retreated after a pickup.
Mr. CHEN Bi, Chairman and non-executive Director of the Company said, “In face of fierce competition in the market, the Company has proactively taken measures to improve the operating situation and remained steadfast in the reform of its marketing system. Leveraging on its branding and geographic advantages, the Company strived to develop international markets, the sales volume of urea and phosphate and compound fertilisers both recorded growth and that of urea even set another record high for the corresponding periods. Among that, exports of urea amounted to 291,000 tonnes and exports of DAP amounted to 110,000 tonnes. Regarding the equipment operation management, the Company strengthened refined management of the production process, the Fudao Phase II Urea Plant, the Hainan Phase I Methanol Plant and the Hainan Phase II Methanol Plant operated continuously for over 200 days, while the CNOOC Huahe Coal-based Urea Plant, the CNOOC Tianye Methanol Plant and the Hubei Phase II DAP plant reached a utilisation rate of 119%. With our intensifying effort in reducing cost and enhancing efficiency, wealth management gains of RMB110 million were realised through refined wealth management business. ”
Benefited from the steadily operated production units and sufficient natural gas supply, the production volume of urea and production volume of methanol by CNOOC Tianye achieved an all-time high for the corresponding periods and the highest half-year output on record respectively. The production volume of urea reached 1.178 million tonnes in the first half of 2017 and its sales volume of urea increased by 22% from the same period of last year to 1.231 million tonnes. Revenue from urea amounted to RMB1,791 million. The production volume of phosphate and compound fertilisers amounted to 462,000 tonnes and its sales volume increased by 35% from the same period of last year to 527,000 tonnes. Revenue from phosphate and compound fertilisers amounted to RMB1,136 million. The production volume of methanol is approximately the same level as compared to that in the same period of last year, reaching 764,000 tonnes with sales volume of 752,000 tonnes. Revenue from methanol amounted to RMB1,675 million.
Mr. CHEN concluded, “In the long run, complete marketisation of the industry and higher environmental protection standards in the PRC will accelerate the elimination of outdated fertiliser capacities, the development of methanol-to-olefins will still be the primary driver of methanol demand. In the second half of 2017, the Company will use its best endeavours to coordinate upstream supply of natural gas, and to try to finalise Dongfang 13-2 Gasfield Natural Gas Supply Agreement; will strengthen HSE and refined production management, to achieve safe and stable operation of each production unit, and to complete the replacement of the high-pressure pool condenser at Fudao Phase II Urea Plant; will consummate the reform of marketing system and put more effort into the sales of efficient and new fertilisers; will implement cost control and quality and efficiency enhancement measures, and to strictly control cost and expenses; will proceed with the preliminary work for constructing the Xinhua coal mine in cooperation with the local professional coal producers in Heilongjiang; will continue the feasibility studies of producing high-end chemical products such as ethylene glycol with natural gas in Hainan; will continue to look for organic growth and merger and acquisition opportunities in China and overseas that fit the Company’s development strategy.”