2012 listed fertilizer companies' overall profit bullish

In 2012, the performance of listed nitrogen fertiliser companies rose rapidly due to falling sales costs, rising sales prices, strong domestic demand in the first half of the year, impressive export situation in the second half of the year, and ample supply of natural gas. Listed compound fertilizer companies continued to introduce innovative products and strengthen agricultural products. In terms of services, profits have also increased substantially year-on-year; however, excess capacity has led to a long-term low price of phosphate and compound fertilizer products. Phosphorus-based chemical companies have also performed at a flat rate or even suffered losses. This is the result of the reporter’s analysis of the performance reports of 25 listed fertilizer companies in 2012.

For listed nitrogen fertiliser companies represented by Cangzhou Dahua, Hualu Hengsheng, Jianfeng Chemical, and Xinlianxin, net profit attributable to shareholders of listed companies increased by 310.88%, 27.31%, 33.53%, and 72.4% year-on-year respectively. The performance report from Henan Xinlianxin Fertilizer Co., Ltd. shows that as of December 31 last year, the company's annual net profit was 311 million yuan, a year-on-year increase of 72.4%, a new high after the listing of the company. The performance report showed that the increase in profit was mainly due to the decrease in the average cost of sales of urea and methanol and the increase in the average selling price of urea.

Despite the year-on-year decline in 2012 performance of some listed nitrogen fertilizer companies, the fertilizer efficiency of the company still brought positive factors to the annual operating results. Taking Huachang Chemical and Liaotong Chemical as examples, the net profit attributable to shareholders of listed companies decreased sharply by 199.77% and 97.67% year-on-year in 2012. However, the performance of the two companies' fertiliser segments still increased significantly compared to the previous year, and the net profit decreased sharply compared to the same period last year. The performance of the fertilizer sector can hardly offset the performance losses of other petrochemical segments of the company.

In stark contrast to nitrogen companies, domestically-manufactured phosphorus chemical companies, with overcapacity and high cost pressures, have caused low prices for phosphate and compound fertilizer products throughout the year, leading to a flat performance or even losses for phosphorus chemical companies. The net profit attributable to shareholders of listed companies last year dropped by 46.38% and 412.69% respectively. Yuntianhua achieved operating revenue of 9.893 billion yuan last year, total profit of -5.17 billion yuan, and net profit of -548 million yuan. Apart from the year-round performance of phosphate fertilizer products, increased parking time for synthetic ammonia and urea plants was also one of the factors that caused the company's performance to decline.

In terms of compound fertilizer, the net profit of Kim Jung-dol last year attributable to the shareholders of the listed company was as high as 550 million yuan, an increase of 25.31% over the same period of last year. The net profit attributable to the shareholders of the listed company last year was 41.05%, 18.83%, and 18.83%, respectively. %, 5.40%, a substantial increase in profits comes from the company's active introduction of slow-release fertilizers, nitro-compound fertilizers, water-soluble fertilizers and other new products and gradually intensified agrochemical service innovation. Xindu Chemical's net profit attributable to shareholders of the listed company last year was lower due to the construction period of the raised investment projects, but its operating income still increased by 5.64% over the same period of last year.