Keyuan Petrochemicals, an independent manufacturer and supplier of various petrochemical products in China, has announced its financial results for the quarter ending June 30, 2014.
Sales for the quarter were approximately US$ 185 million, an increase of 96% from the same quarter in 2013. The increase has been attributed to the increase in sales and production volume in the second quarter of this year, compared with the 40 days of production interruptions in the same time last year. During Q2 2014, the company sold 170 979 t of petrochemical products at an average price of US$ 1079 /t, compared to 85 999 /t of products at US$ 1096 /t the same time in 2013. The average sales price per t in Q2 2014 dropped 1.5% compared with the same period in 2013.
Keyuan began heavy oil trading in April last year. The company functions as an agent on behalf of a client in Hong Kong. For Q2 2014 and 2013, the heavy oil trading consisted of purchases of approximately US$ 70.1 million and US$ 130.0 million respectively, and sales of approximately US$ 69.8 million and US$ 129.4 million respectively, resulting in a loss of US$ 0.3 million and US$ 0.6 million respectively.
Gross profit for Q2 2014 was US$ 9.7 million compared with US$ 2.6 million for the same time last year. The increase has been attributed to the improved sales and production volume during the period compared with the production and suspension in the comparable period in 2013.
Sales for the first half of this year were US$ 386 million, an increase from US$ 304 million seen last year. The increase in sales has been due to the increase in sales and production volume in the second quarter of the year. For the first six months of the year, heavy oil trading consisted of purchases of US$ 170.1 million, and sales of US$ 169 million, resulting in a loss of US$ 1.1 million.
Gross profit for the first six months of 2014 were US$ 17 million, compared with US$ 11 million for the same time last year. Gross margin increased from 3.6% H1 2013 to 4.4% H1 2014. The increase has been attributed to the improved production and lower unit costs.
Chunfeng Tao, Chairman and CEO, Keyun Petrochemicals said, ‘we are pleased that our sales have increased significantly year over year due to an increase in sales and production volume in the last quarter compared with the same period of 2013. I believe the company will continue to keep sustainable growth while we are preparing the launching of some new products late this year. In addition, it is expected that the petrochemical market in China will become more stabilised soon and Keyun’s core earnings potential will continue to improve.’
Edited from press release by Claira Lloyd
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