Focus of this week: affected by the epidemic, oil giant shell's profits fell sharply, cutting dividends for the first time in 80 years. Globally, South Korea's Xiaoxing and Linde have jointly built the world's largest liquid hydrogen plant with an investment of 300 billion won. On the domestic side, foreign investment continues to increase in China, PPG global paint innovation center will start construction in Tianjin; aiside will expand Shanghai Jiading paint factory to build water-based plant; kerushi will build its first low-voltage lithium-ion battery factory in China in Taicang, Jiangsu Province. In terms of M & A, Yangtze Power completed the acquisition of Peru's largest power company with a total of 25 billion yuan. In addition, shell, PetroChina, Sinopec, BP, Alcoa, BASF, Wanhua chemical, PPG, Ningde times, general electric, Schneider Electric, caterpillar, etc. released their first quarter results in 2020.
Global dynamics
Shell cut dividends for the first time in 80 years. Royal Dutch Shell cut its dividend this week for the first time in 80 years. Previously, the company's profits fell sharply due to the sharp decline in global oil demand caused by the outbreak. Ben van beurden, shell's chief executive, said: "given the continued deterioration of the macroeconomic outlook and significant medium - and long-term uncertainties, we are taking further cautious measures to enhance our resilience, consolidate our balance sheet and support shell's long-term value creation."
Chesapeake energy, an American shale oil and gas company, is preparing to file for bankruptcy. Chesapeake energy, the US shale oil and gas exploration and production company, is preparing to file for bankruptcy protection due to an unprecedented slump in energy prices. The company has discussed with its creditors a possible loan that will help the company maintain operations during the insolvency proceedings. The total amount of the loan is about $1 billion, but the scale has not been determined.
Rio Tinto spent $5.9 million on exploration for the citadel copper and gold project. The project is a joint venture between Rio Tinto and antipa minerals. Antepa said it was well ahead of the previous budget ($2 million / US $1.3 million). Exploration activities are expected to start in the quarter and will include reverse circulation drilling and diamond exploration at calibre mine, 45 km from Rio Tinto's winu copper and gold mine.
Tata, a steel company, has asked the government to raise the loan ceiling to £ 500m. Tata Steel, the UK's largest steel company, is in trouble in the UK and has to seek emergency assistance from the government to raise the bank loan ceiling from the existing £ 50m to £ 500m to survive the crisis. It has 8385 employees in the UK, including more than 4000 at the Port Talbot steel plant in Wales.
Xiaoxing and Linde jointly build the world's largest liquid hydrogen plant. It is planned to start construction in the first quarter of next year and complete the project construction in 2022. Xiaoxing group will invest 300 billion won to build a 30000 square meter liquid hydrogen plant with an annual capacity of 13000 tons, which is enough to fill 100000 hydrogen vehicles with hydrogen. The project covers all contents including liquid hydrogen production, transportation, construction and operation of hydrogenation station. It is built in the Longyan plant of Xiaoxing Chemical Co., Ltd. in Weishan, and will become the largest single liquid hydrogen plant in the world.
Tesla's California plant cancelled its early return to work program. Because several counties in the San Francisco Bay area plan to extend the "stay at home order" throughout may or even June. Tesla's Fremont plant is one of the company's only two vehicle assembly plants, producing model s, model x, model 3, and model y.
China News
Aiside expands the Shanghai waterborne coating factory. The expanded water-based coating plant will enable Ashtar to better meet the growing demand of automotive and industrial coating customers in East and South China for sustainable water-based coatings. The expansion project is expected to be completed and put into operation in early 2021. Since aiside entered the Chinese market in 1984, it has set up a liquid coating factory in Jiading of Shanghai and Changchun of Jilin, and a powder coating factory in Qingpu. In March 2015, the company established a water-based plant in Jiading coating plant. In addition, Ashtar has four automotive touch up paint training centers across the country. In 2017, asid established the Asia Pacific Technology R & D center in Shanghai.
PPG global paint innovation center is expected to open in Tianjin in April. PPG coatings (Tianjin) Co., Ltd. plans to invest 55 million yuan at the intersection of 7th Street and Beihai Road in Tianjin Economic and Technological Development Zone to build "PPG global coatings Innovation Center TEDA project" in the newly acquired land. The main construction contents of the project include: R & D Center 1 (Class C), R & D center 2 (Class A), class a warehouse, class C warehouse, public workshop, etc. After the completion of the project, we mainly carry out the research and development experiments of coating products, product formulation deployment and testing, and provide technical support and services to customers. The staff quota of the project is 455. It is expected to start construction in April 2020 and put into operation in December 2021.
Clarios invested in Taicang, Jiangsu Province to build its first low-voltage lithium-ion battery factory in China, which mainly produces 12V lithium-ion batteries. In the later stage of the project, the production of 48V lithium battery can be expanded to meet the use demand of micro hybrid vehicles. The initial investment of the new plant is US $10 million (about RMB 70.83 million), and the annual output of the first production line is planned to be 300000 batteries, which will be supplied to domestic and Asian vehicle customers. Keraishi was formerly the power solution business of Johnson Controls in the production of automotive batteries.
Sinopec takes the lead in reshaping science and technology to speed up the distribution of hydrogen energy. In the future, Sinopec will give full play to the network advantages of 30000 existing gas stations to build oil and hydrogen mixing stations. In addition, Sinopec will actively study more economical hydrogen production methods, further reduce the cost of hydrogen production, storage and transportation, and help the development of hydrogen energy industry. Sinopec and reshape science and technology to carry out in-depth strategic cooperation is conducive to jointly enrich and improve the layout of both sides in the hydrogen industry chain.
Reshaping technology and Toyota trading to create hydrogen heavy truck scenario application. Shanghai remolding Energy Technology Co., Ltd., Changshu high tech Industrial Development Zone Management Committee and Toyota Tongshang (Shanghai) Co., Ltd. have reached cooperation intention to jointly build hydrogen fuel cell heavy truck demonstration application project and further accelerate the promotion and application of Changshu hydrogen fuel cell vehicles. In addition, remodel technology cooperates with ECAP, the European vehicle electric drive engineering company, to implement the commercialized application of hydrogen energy.
The world's first 100 megawatt project, Trina Solar's supreme component, opens a new chapter of 500W + in the Indian market. Trina Solar will supply 105mW supreme series double-sided double glass components for the Indian market. Sunsource energy is a leading provider of photovoltaic solar energy and energy storage solutions in emerging photovoltaic markets such as India and Southeast Asia. The purchased 105mW supreme series double-sided double glass modules will be applied to a number of photovoltaic power generation projects in India. Trina Solar is expected to start shipping in the fourth quarter of 2020.
Shanghai Electric participated in the construction of Qiqihar wind power project. Qiqihar wind power project investment development and strategic cooperation agreement signing ceremony was held in Qiqihar City, Heilongjiang Province. According to the agreement, Shanghai Electric, China first heavy and Qiqihar develop and construct local wind power projects with capacity of no less than 1GW under the condition of load consumption in accordance with the development and construction objectives of Heilongjiang wind power development planning and combined with Qiqihar's own characteristics and advantages.
Haige electric helped Wuhan to build a new landmark of wanghong. Haige electric business team also launched orderly preparations for Wuhan Tiandi B10 residential project in the first time after the official "restart" in Wuhan. It is expected that the cooperation project will complete the supply, installation and commissioning of all products from May to November this year.
Hitachi Elevator and poly development sign another round of centralized purchase agreement. Hitachi Elevator is the only elevator supplier that cooperates with poly continuously in the five rounds of centralized purchase agreement. The two sides have jointly built such landmark real estate projects as Guangzhou Poly Tianyue, Guangzhou Poly Clovis, Qingdao poly manyue mountain, Chongqing poly river pearl, Wuhan poly metropolis, Sanya finance and Economics International Forum.
M & A and spin off
KPS capital will acquire Lufkin's rod lift solutions business from Baker Hughes. KPS capital announced a final agreement to acquire Lufkin's rod lift solutions business from Baker Hughes. Lufkin was founded in 1902 and acquired by GE's oil and gas division in 2013. In 2017, the division merged with Baker Hughes. Lufkin has accumulated more than 100 years of industry leading advantages in the production of all kinds of surface pumps, downhole sucker rod pumps and automation systems in six manufacturing and assembly plants around the world. Upon completion of the transaction, the assets of Lufkin's rod lift solution business will be transferred to a KPS affiliate, including brand rights, facilities, intellectual property and employees. Lufkin's driveline business remains Baker Hughes's portfolio and is not included in the deal with KPS.
Yangtze Power completed the acquisition of Peru's largest power company with a total of 25 billion yuan. The deal price was $3.59 billion (25.4 billion yuan). The Three Gorges group said it was the largest overseas power acquisition project for Chinese companies in recent years. It is also the first time for Chinese enterprises to enter Peru's large-scale public utilities, and Yangtze River power has also been able to enter the overseas distribution market for the first time.
Financial report Express
Royal Dutch Shell. In the first quarter of 2020, shareholders accounted for 2.9 billion US dollars of net profit, down 46%. The total crude oil production in the first quarter was 372 barrels per day, with a net loss of $24 million and a profit of $6001 million in the same period last year. Revenue was $60.029 billion, compared with $83.735 billion in the same period last year.
PetroChina. Under the double impact of the sharp fall of international oil price and the decline of fuel consumption under the epidemic situation, according to the international financial reporting standards, the operating revenue of PetroChina in the first quarter of 2020 was 509.098 billion yuan, down 14.4% year-on-year; the net loss attributable to the shareholders of the parent company was 16.23 billion yuan, the profit of the same period last year was 10.249 billion yuan, and the net profit was 258.4% year-on-year. In the first quarter, the average crude oil price of PetroChina was 54.39 USD / barrel, down 8.6% year on year. Among them, the domestic realized price was 56.42 USD / barrel, down 5.0% year on year.
SINOPEC (China Petrochemical Corporation. In the first quarter of 2020, the operating revenue was 55.5502 billion yuan, down 22.6% year on year. The net loss attributable to the shareholders of the parent company was 19.782 billion yuan, with a profit of 14.763 billion yuan in the same period last year; the net loss attributable to the shareholders of the parent company after deducting non recurring profit and loss was 20.444 billion yuan, with a net profit of 14.370 billion yuan in the same period last year.
BP. In the first quarter of 2020, the revenue was US $59.65 billion, down 10% year on year. Shareholders accounted for a net loss of $4.365 billion, compared with a net profit of $29.34 for the same period last year. The record loss for the quarter was driven by a sharp fall in oil prices at the end of the quarter and a $3.7 billion inventory loss.
Exxon Mobil. In the first quarter of 2020, the total revenue was 56.158 billion US dollars, compared with 63.625 billion US dollars in the same period last year, down 11.7% year on year. The net loss was $610 million, and the net profit for the same period last year was $2.35 billion. ExxonMobil recorded its first quarterly loss in 32 years as market related write downs generated $2.9 billion in non cash expenses to reflect the impact of falling commodity prices and asset impairments on the valuation of non cash inventories.
Chevron. In the first quarter of fiscal year 2020, the revenue was US $3.501 billion, down 10.5% year on year; the net profit attributable to the parent company was US $3.599 billion, up 35.9% year on year.
Phillips 66. Revenue in the first quarter of 2020 was US $212.144 billion, compared with us $23.658 billion in the same period last year. Net loss during the period: US $2.5 billion