SINGAPORE (ICIS)--China’s Hengyi Petrochemical's net profit for 2013 rose by 36% to yuan (CNY) 427m ($69.5m) from CNY314m in 2012, the company said in a statement to the Shenzhen Stock Exchange on Wednesday.
The company's board has carried out a series of reform and innovation measures to improve its sales and products quality as well as costs controls, despite of downward pressure in the petrochemical and chemical fibre industry, Hengyi Petrochemical said in the statement.
Hengyi Petrochemical's operating revenue edged down by 5.9% year on year to CNY30.8bn in 2013, according to the statement.
In 2013, its subsidiary Zhejiang Hengyi Petrochemicals has hit an output of about 2.8m tonnes of purified terephthalic acid (PTA) and generated a sales-to-output ratio of 100.4%, according to the company said.
Moreover, the company's PTA project in Hainan province has secured approval from the local environmental authority by the end of May 2013, which would increase its PTA capacity by 2.1m tonnes/year and could effectively strengthen its leading position in the PTA industry, it added.
Additionally, Hengyi Petrochemical's refinery and petrochemical project at Pulau Muara Besar (PMB) in Brunei is progressing smoothly under a joint venture agreement signed on 25 February 2014, according to the statement.
In its forecast for 2014, some positive factors, such as rising exports of textile and apparel to Europe and the US demand recovery, are expected to be seen, as these countries' economies gradually stabilise, the company said.
However, challenges are also present in the development of the chemical fibre industry in 2014 due to an oversupply situation, as its capacity growth is currently faster than demand growth, it said.
Hengyi Petrochemical expects to make steady progress in its PMB project to extend into the upstream sector of the chain in 2014. Meanwhile, it will look to upgrading their production technology and to focus on products that could bring better netbacks, as well as to reduce operating costs to boost its revenues, the company added.
The company, a subsidiary under Zhejiang Hengyi Group, is one of the largest PTA and polyester fibre producers in China.