China’s Hubei Yihua H1 net profit down 56.6%, sales falls 11.3%

21 August 2013 07:09  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Hubei Yihua Chemical Industry said on Wednesday that its net profit for the first half of 2013 fell by 56.6% year on year to yuan (CNY) 206m ($33.7m), as a result of oversupply amid a weak fertilizer market.

The company’s revenue in the first six months of 2013 dropped 11.3% year on year to CNY 8.32bn, compared with CNY 9.38bn in the same period in 2012, the company said in a statement to the Shenzhen Stock Exchange.

In the January-June period, the company produced 1.62m tonnes of urea, 402,300 tonnes of polyvinyl chloride (PVC), and 591,600 tonnes of diammonium phosphate (DAP). 

The company said that its profitability was largely curtailed by falling urea and DAP prices amid the oversupply in a weak fertilizer market. 

The persistently weak PVC market also dragged down the company’s revenue, the company added.

The company has started up a new DAP facility at Songzi in Hubei province,which includes two DAP lines with a capacity of 280,000 tonnes/year each, in the first half of this year, according to the statement.

Additionally, the company has brought onstream a new 300,000 tonne/year PVC unit and a 250,000 tonne/year caustic soda unit during the same period, the statement added.

Hubei Yihua Chemical Industry is a key fertilizer producer in China.

($1 = CNY6.12)

By: Viola Pan
+65 6780 4359

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