Gelonghui, March 24, 丨 CNOOC Petrochemical (03983.HK) announced that for the year ended December 31, 2023, the Group's revenue was RMB 12.99 billion, a decrease of 9.0% year on year. The main reason is market fluctuations. The sales prices of the Group's urea, phosphorus compound fertilizer and methanol all declined to varying degrees year over year. Company owners should account for annual profit of RMB 2.38 billion, an increase of 45.00% over the previous year; it is recommended to pay a year-end dividend of RMB 0.207 per share in 2023.
As the financial properties of urea futures increase, the frequency of urea price fluctuation has accelerated markedly, and the overall urea market trend in China in 2023 will first subside and then rise. The trend of oversupply in the domestic urea market before June appeared in stages. The overall price fluctuated, and after June, the domestic urea market began a volatile upward trend, driven by favorable factors such as improved international urea prices and increased exports; the domestic market fluctuated and fell repeatedly in the fourth quarter, until the end of the year as influencing factors such as exports and coal gradually weakened, domestic urea prices returned to supply and demand.
The price of urea fluctuates between RMB 2,000 and RMB 2,700 per ton in 2023. The average price of small to medium granular urea in China in 2023 is approximately RMB 2,467 per ton, which is RMB 238 per ton lower than the average price of RMB 2,705 per ton in 2022.
In 2023, the company continued to strengthen production and operation control. There were no production safety accidents of any kind throughout the year. Environmental pollution incidents were “zero” for two consecutive years, the best result since the establishment of the company. The Hainan Phase I methanol plant once again achieved a long cycle of operation of more than 500 days. The number of days of continuous operation of the Huahe Coal Chemical fertilizer plant and urea production both reached record highs. Thanks to this, the company's annual urea production increased significantly over the same period last year. In 2023, the company will produce 2.06 million tons of urea, 814,000 tons of phosphorus compound fertilizer, 1.462 million tons of methanol, and 165,000 tons of acrylonitrile series products.