Energy public opinion: "two barrels of oil" three quarterly report was focused on Datang Huadian merger rumors questioned

(10.29-11.4)

Xu Liping, Wu Qian, Qiu Lin

November 2018 08, 16:28, source: People's Network - public opinion channel
 

During this period, China Petroleum and Sinopec announced the three quarterly bulletin in 2018, and focused on their brilliant results. How to deal with the increasingly fierce market competition environment has also triggered public opinion. The merger of Datang Group and Huadian Group is complicated and the authority of information sources is low. Photovoltaic industry information intensive release, general secretary Xi Jinping responded to the entrepreneur's representative's speech, the National Energy Bureau meeting released positive information, public opinion that the photovoltaic field warm wind blowing, industry boom is expected to gradually upward.

PetroChina and Sinopec released three quarterly public opinion focusing on two barrels of oil.

On the night of October 30th, China Petroleum and Sinopec announced the three quarterly report in 2018. PetroChina achieved operating income of 1 trillion and 710 billion yuan in the first three quarters of 2018, an increase of 17.3% over the same period last year, and net profit of 48 billion 121 million yuan, an increase of 177.2% over the same period last year. Sinopec realized operating income of 2 trillion and 70 billion yuan in the first three quarters of 2018, an increase of 18.8% over the same period last year, and net profit of 59 billion 980 million yuan, an increase of 56.3% over the same period last year.

"Two barrels of oil" in the three quarter, brilliant results won public opinion.

A number of financial media pointed out that "two barrels of oil" in the first three quarters of the total revenue of nearly 4 trillion, the average daily profit of nearly 400 million yuan. Benefiting from international crude oil price shocks and other factors, PetroChina and Sinopec continued to grow well in the three quarter of this year, with steady growth in revenues and larger net profit year-on-year growth. Media reports commented that the performance of "two barrels of oil" was "bright". According to the financial query data of flush I, Sinopec and PetroChina were separated by the top two companies in 3566 listed companies, and the company subsequently pulled a certain gap. From the perspective of net profit, Sinopec and PetroChina were also winners, ranking seventh and tenth respectively in the net profit list.

Some media are concerned about "two barrels of oil" part of the business loss or revenue fell year on year.

The Beijing news pointed out that Sinopec's loss in exploration and development sector in the first three quarters of Sinopec was RMB 1 billion yuan. On the other hand, Wall Street noted that PetroChina's three quarterly report has not changed much, except sales growth. According to Wall Street's knowledge, this shows that China's oil revenue growth mainly comes from the price increase rather than the improvement of management level: net interest rate of about 3.7% shows that although the scale of the company is huge, its competitiveness is weak.

How to cope with the increasingly fierce competition in the market? How should domestic oil giants respond to public opinion?

According to the special management measures for foreign investment admission (negative list) (2018 version), which began in July this year, more than 30 restrictions on the need for Chinese holdings were abolished. All major international oil giants responded positively, and Shell plans to add more than 2000 gas stations by 2025. BP also said it will add 1000 gas stations in China in the next 5 years. Public opinion believes that this will bring pressure to "two barrels of oil". In September, Gulf oil entered the domestic gas station business, and its low oil price caused a storm, then quickly closed with oil prices and "two barrels of oil". Gulf oil briefly stirred the domestic oil products market, reflecting the impact of overseas oil companies on domestic oil giants and consumers' dissatisfaction with domestic oil prices. How will China's domestic giants such as PetroChina and Sinopec face overseas oil companies that are about to enter the Chinese market and the more competitive market environment they face?

The merger of Datang and Huadian is considered inappropriate.

In October 31st, Huadian Group held a meeting. Zhao Jianguo, Secretary of the Party group and chairman of the group, retired. On the same day, "coal and lakes" issued a document that the Huadian Group and Datang Group, the five largest power generation groups, announced the merger and were appointed chairman of the board by Chen Feihu. The article points out that the combined group will outperform the newly born national energy group, but there is still a clear gap between the total assets and the national energy group. In terms of wind power, by the end of 2016, the Datang Group's wind power installed capacity of 1 million 830 thousand kilowatts will rank second in the five largest power generation group, which will effectively compensate for the lack of wind power in Huadian Power Grid. Huadian hydropower is the first. The assets of Datang hydropower plate is only inferior to its thermal power plate, and hydropower can be strongly combined. However, in terms of coal, the merger of the two parties has little gain in resolving the contradiction between coal and electricity.

There are many opinions about "merger rumours".

After the article was issued, it aroused the concern of the whole media. In November 1st, the industry media and the media from all over the world took "Huadian" and "Datang" Chen Fei Hu as chairman of the board. The merger of power central enterprises is gradually implemented. "Huadian and Datang combine 1 trillion and 500 billion energy giant ships to sail". Another is the birth of wind power giant. The above article points out that since the merger of China electric power and nuclear technology in 2015, the merger tide of energy central enterprises has intensified. The news of the retirement of the chairman of Datang and Huadian Power also increased the credibility of the merger rumors. Prior to the announcement of the merger between Shenhua and Guodian, there were also vacancies in the top leadership positions of two central enterprises.

On the 2 day, the deputy editor in chief of energy magazine issued the "energy spicy comment" on the three reasons why Datang and Huadian should not be merged, refuting the merger rumors. The article points out that the simple merger of two identical power generation enterprises is not only difficult to form the synergy effect of the industrial chain, and to enhance the comprehensive competitiveness of enterprises, but also violate the current reform spirit. After the article was issued, the media reported that the wind was turning. China's business network followed the official announcement. The article said that for the "merger" rumors, Huadian Group Office did not hear the relevant news, nor received any notice above; a SASAC insider also said that there is no relevant news. However, the article still cites the industry's view that there is a great possibility for the merger of Huadian and Datang. The official WeChat public of Southern Energy observation magazine said that the merger of Huadian and Datang was not the choice of 1+1 > 2. In addition to the "energy" magazine's viewpoint, the article also pointed out that if Huadian and Datang combine to form a "Big Mac", it will not be conducive to creating a fair and competitive environment.

On the 3 day, the Economic Observer website issued a report on the merger of Huadian Group and Datang Group. Some companies denied that, but officials said it was true. The article pointed out that an official of the local energy system confirmed that the merger was true.

The authority of the media is low, and the rumors of merger are deviating from the conventional process.

Energy news network article pointed out that the merger rumors deviated from the conventional process, lack of authenticity. According to the article, Datang Group and Huadian Group are all directly under the State Council's SASAC. According to the process, reorganization must be reported to the SASAC of the State Council first, and approved by the State Council, and then announced by the SASAC. The process of general restructuring is relatively long, and the short term is 6 months long. The two central enterprises have not had a "hand in hand scandal" before, and there is a lack of complementarity in the business. The news of the merger basically confirmed by the media is amazing.

Although the office of the Huadian Group and the SASAC insiders told the media that they had not heard the relevant news and had not received any news, the "merger rumor" has been circulating for many days, and no clarification has been made by the Datang Group and the Huadian Group's official website, making the "merger rumor" fermented continuously.

Throughout the public opinion communication features, media coverage is concentrated in industry websites and portals, accounting for about 90% of the total, and no central news website has been reported. From the media, WeChat platform is the main channel for the dissemination of public opinion, accounting for nearly 50% of information. Most of the media that publish merger messages are self media and industry media. There is no mainstream authoritative media report. The authenticity and reliability of the "merger" message is open to question.

The reorganization of energy central enterprises is expected.

SASAC said at a working conference that under the new situation, the restructuring of central enterprises should play a greater role in fostering world-class enterprises with global competitiveness, implementing structural reforms on the supply side, restructuring and upgrading of industrial structure, reducing physical fitness, improving quality and improving efficiency. Central enterprises in coal and other energy fields will continue to be the focus of related work this year to better play the role of central enterprises in safeguarding national energy security and promoting healthy economic development.

Whether it is China Power Investment and the establishment of a national electricity investment in the national nuclear technology, or the merger of Shenhua and Guodian into a national energy group, the reorganization of energy central enterprises has always received the public's attention and expectation. Public opinion holds that the main purpose of the reorganization of the central enterprises is to be stronger rather than bigger. Huadian and Datang mergers have been "bigger" in terms of volume. However, due to their similar businesses, it is difficult to form a complementary effect of restructuring.

Information intensive publishing in photovoltaic industry has received wide attention from public opinion.

In October 30th, the national energy board held a news conference on the energy situation in the first three quarters of this year, and pointed out that it will actively promote the construction of non subsidy wind power and photovoltaic power generation projects. Later, at the forum of senior private enterprises chaired by general secretary Xi Jinping, Liu Hanyuan, chairman of the board of directors of Tongwei group, responded positively to relevant departments. A series of meetings have been held to prompt the news of the PV industry.

The national energy board held a press conference to pay attention to the arrival of the era of PV parity.

In October 30th, the national energy board held a press conference on the energy situation in the first three quarters of this year. At the meeting, Liang Zhipeng, deputy director of the new energy and renewable energy division, said that the State Energy Bureau will actively promote the construction of non subsidy wind power and photovoltaic power generation projects, and take the lead in establishing a number of low price or low price wind power and photovoltaic power generation without state subsidies in areas with good resource conditions, low construction costs and the implementation of market access conditions. The news conference was held by the industry. Public opinion has focused on the Internet of price parity and the construction of non subsidy wind power and photovoltaic power generation projects.

The Beijing business daily focuses on the cost reduction of the whole industry chain of photovoltaic industry. Whether the photovoltaic industry can usher in the era of parity in the Internet is pointed out. At present, the cost of photovoltaic Internet access is still higher than that of thermal power and hydropower. However, the price of photovoltaic links has declined to varying degrees under the impetus of the "5 31 New Deal" policy. The cost reduction of the whole industry chain in photovoltaic industry is an important factor contributing to the arrival of the era of China's PV parity. Cai Jibo, general manager of Jiangsu Su Mei Da group, also said that with the dramatic decline in PV module cost and the continuous progress of PV technology, the cost advantage of PV relative to traditional energy will gradually appear.

The "5. 31 New Deal" will speed up the Internet and speed up the first non subsidy photovoltaic project in the country. It will report the first photovoltaic pricing project in China, namely, the market of photovoltaic power generation in Hekou District of Dongying, Shandong. The project operator claims that the most advanced HJT components will be adopted to achieve the promise of no state subsidy. The article points out that with the gradual development of efficient ecological chain such as high efficiency battery, tracking system and optimization design, efficient technology will start feeding back to the industry and accelerate the process of PV parity.

Industry admonition to respond to photovoltaic policy or adjustment caused media focus

On November 1st, at the forum of private enterprises chaired by general secretary Xi Jinping, Liu Hanyuan, chairman of Tongwei group's board of directors, delivered an address as an entrepreneur. He pointed out that the sudden release of the "5 / 31 New Deal" has caused heavy losses to the industry, and other non-tariff factors, such as taxes and fees, have pushed up the cost of domestic photovoltaic power generation. Moreover, the existing PV industry policy is difficult to meet the needs of energy transformation in China. After listening to the speech, general secretary Xi Jinping said that in the early stage of the policy making process, the research was not enough, and the views of the enterprises were not fully listened to, and the actual effects of the policies were not considered very well. Some policies are not in harmony with each other, the effect of policies is superimposed or the way of work is simple, which leads to some contrary policies in good intentions.

On the 2 day, the national energy board responded quickly and organized a symposium on the mid term assessment of solar energy development in 13th Five-Year. The meeting stressed that PV is a clean energy supported by the state. It is clear that the domestic PV market will be subsidized before 2022, and will not push the Internet of price parity across the board. In addition, the goal of photovoltaic construction in 13th Five-Year will be greatly improved. The forum held that the goal of PV installed in 13th Five-Year is expected to be adjusted to exceed 250GW or even 270GW. It is reported that in the next month or so, the national energy board will accelerate the formulation of the relevant policies of photovoltaic industry in 2019 to stabilize market expectations and let PV enterprises feel at ease.

The Shanghai securities news, the securities times network, the interface news network, the China financial network, each network and other media actively issued the article to pay attention to this matter. "Shanghai Securities Daily" article "the next three years policy support will continue to continue to photovoltaic enterprises are expected to eat" reassurance "and the securities times network article" photovoltaic policy will make positive adjustment of Tongwei group Liu Hanyuan's response to the proposal ", pointed out that the relevant departments responded quickly to Liu Hanyuan's admonition, revealed that photovoltaic policy will be adjusted accordingly, give photovoltaic enterprises a grain of salt.

Wang Bohua, vice chairman and Secretary General of China Photovoltaic Industry Association, held in November 2nd the theme forum of China distributed Photovoltaic Conference held in 2018, said that the state will maintain strong support for the PV industry and should have full confidence in the domestic market. Some analysts have pointed out that it is too early to think that policies will reverse, and that the most critical contradiction between the subsidies for photovoltaic subsidies and the continued expansion of subsidies gap has not yet been resolved. If the follow-up policy provides new sources of subsidy funds, it is the real good for the industry.

(Editor: Wang Kun, Zhang Xiang)