Caixin
Jul 03, 2021 06:32 AM
ENERGY INSIDER

Energy Insider: PetroChina and Sinopec Swing to Profits; Huadian Called on Carpet Over Safety

A gas station run by Sinopec.
A gas station run by Sinopec.

In today’s Caixin energy news wrap: PetroChina and Sinopec swing to profits in first half; China’s energy regulator has a chat with Huadian over production safety; Zijin Mining’s first half net profit surges 156%–173%; Jiangling Motors’ June sales drop 19.92%.

PetroChina, Sinopec swing to profits

China Petroleum & Chemical Corp. (Sinopec, 600028.SH) expects to report net profit of 36.5 billion–38.5 billion yuan ($5.64 billion–5.95 billion) for the 2021 first half, the company said Thursday. In the 2020 first half, it had a net loss of 22.9 billion yuan. Since the beginning of this year, demand for petroleum and petrochemical products rebounded as the pandemic eased around the world and crude oil prices rose, the company said.

PetroChina Co. Ltd. (PetroChina, 601857.SH) said it expects to post net profit of 45 billion–60 billion yuan in the first half, swinging from a net loss of 30 billion yuan a year earlier. In addition to rising demand and oil prices, the company attributed the profit to the transfer and delivery of pipeline-related equity in its subsidiary Kunlun Energy Co. Ltd.

Azure’s first-half net profit gains 346%–388%

Jiangsu Azure Corp. (002245.SZ) expects to report first-half profit of 320 million–350 million yuan ($49.4–$54 million), a 346%–388% year-over-year increase, the company said. In the first half, the lithium battery business ran at 100% of capacity, and all products were sold out. The company said its LED business also swung to a profit from last year’s loss.

Huadian called on regulatory carpet, completes asset restructuring

China’s National Energy Administration met with China Huadian Corp. Ltd. regarding power safety supervision. Regulators raised concerns over a recent rise in accidents endangering safe production. The incidents show defects in the implementation of the safety responsibility system, identification of safety risks, safety education and training, production activity management and control, management of physical and mental health for employees and accident information-reporting, the regulator said.

Huadian completed a second round of asset restructuring in the first half, following a first round at the end of 2020, the company said Wednesday. The second round mainly focused on wind and solar panel power assets of its listed subsidiary, Huadian Power International Corp. Wind and photovoltaic power assets with a total installed capacity of 8 million kilowatts were transferred to Huadian Fuxin Energy Corp. Ltd. The restructuring expanded Fuxin’s total installed capacity to 25 million kilowatts and its total assets to nearly 170 billion yuan, with business operations in 29 Chinese provinces as well as Europe.

Zijin Mining’s first-half net profit rises 156%–173%

Zijin Mining Group Co. Ltd. (601899.SH) expects to post a net profit of 6.2 billion–6.6 billion yuan ($959 million–$1.02 billion) in the first half, a year-over-year increase of 156%–173%, the company said Thursday. The output of the company’s main mineral products, such as gold, copper and zinc, increased, while prices of copper, zinc and other metals all jumped from a year ago.

Tongling Nonferrous Metals estimates a 233% first-half net profit increase

Tongling Nonferrous Metals Group Holdings Co. Ltd. (000630.SZ) expects to report a profit of 1.3 billion yuan ($201 million) in the 2021 first half, a year-over-year increase of 232.73%, the company said. Tongling’s main businesses all experienced steady growth, and prices increased significantly for the company’s key products — cathode copper, sulfuric acid and iron ore pellets.

Jiangling Motors’ June vehicle sales fall 19.92%

June vehicle sales of Jiangling Motors Co. Ltd. (000550.SZ) fell 19.92% from June 2020 to 31,400 units, the company said Thursday. For the first half, however, deliveries jumped 24.45% from a year earlier to 180,000 vehicles.

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