Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  SHENZHEN STOCK EXCHANGE  >  Oriental Energy Co., Ltd.    002221   CNE1000009S3

ORIENTAL ENERGY CO., LTD.

(002221)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

Oriental Energy : China to resume U.S. LPG imports as Beijing waives trade-war tariff - sources

share with twitter share with LinkedIn share with facebook
share via e-mail
03/25/2020 | 11:02pm EDT

China has begun buying U.S. liquefied petroleum gas (LPG) again after a hiatus of nearly 20 months as Beijing waived punitive tariffs to boost imports of U.S. goods as part of the Sino-U.S. Phase 1 trade deal, industry sources said.

Importers have rushed to apply for waivers for the 25% tariff to buy the fuel, a by-product from U.S. shale gas production, after Beijing started granting exemptions this month for nearly 700 U.S. goods.

About a dozen firms - including China Gas Holdings, a piped gas distributor and LPG trader, and Oriental Energy, a manufacturer using LPG to make petrochemicals - have been granted the tariff waivers, according to two veteran LPG traders, an investment officer and analysts at IHS Markit.

With the exemptions, U.S. LPG is subject only to a 1% import duty, same as rival supplies from the Middle East.

"U.S. LPG provides us a diversified source of supply to keep our overall import cost low," said Tan Yuwei, an investor relation officer with China Gas, adding that the firm has booked 60,000 tonnes of U.S. fuel for late April arrival.

An official with Oriental Energy confirmed his company won a tariff exemption but declined to comment on any purchases.

The LPG traders declined to be named because they are not authorized to speak with the press.

Yanyu He, IHS Markit's Houston-based senior analyst for natural gas liquids, said he expected Chinese bookings of U.S. cargoes to re-emerge from April, although the sudden crash of oil prices to sub-$30 a barrel will see U.S. LPG output decline.

China may have booked an estimated five U.S. cargoes totalling 220,000 tonnes so far, said a Beijing-based IHS analyst who also declined to be named as he is not authorized to speak to the media. This analyst said a slow rebound in Chinese petrochemical production following the coronavirus outbreak could hold back purchases.

The resumption of U.S. trade is set to weigh on prices of competing cargoes from Qatar and Saudi Arabia.

Benchmark U.S. spot butane prices <BUT-USG> in Mont Belvieu, Texas, have lost two-thirds of their values over the past month, dropping to their lowest since at least 1990 at $0.21 per U.S. gallon, primarily tracking the free-fall in oil prices.

That is equivalent to about $95 per tonne, and compares with April Asian LPG paper at $150 a tonne.

China was the No.2 buyer of U.S. LPG exports in 2017, with purchases at 3.6 million tonnes, then worth some $2 billion. Imports began shrinking in late 2018 and nearly dried up last year during the prolonged U.S.-China trade war.

U.S. LPG, typically in 44,000 tonne cargoes and sailing through the Panama Canal, takes about 30 days to get to China.

LPG consists of propane and butane used for heating and making petrochemicals.

(This story corrects time in penultimate paragraph to about 30 days, not two weeks).

By Chen Aizhu

Stocks mentioned in the article
ChangeLast1st jan.
CHINA GAS HOLDINGS LIMITED -2.17% 24.75 End-of-day quote.-2.56%
ORIENTAL ENERGY CO., LTD. 1.50% 8.81 End-of-day quote.0.11%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on ORIENTAL ENERGY CO., LTD.
03/25ORIENTAL ENERGY : China to resume U.S. LPG imports as Beijing waives trade-war t..
RE
03/25CHINA TO RESUME U.S. LPG IMPORTS AS : sources
RE
2019ORIENTAL ENERGY : Announces Oil Discovery in OML 67
AQ
2019ORIENTAL ENERGY : Gingoog to get hydro power
AQ
More news
Financials (CNY)
Sales 2019 57 784 M
EBIT 2019 1 551 M
Net income 2019 1 313 M
Debt 2019 -
Yield 2019 -
P/E ratio 2019 11,0x
P/E ratio 2020 8,51x
Capi. / Sales2019 0,25x
Capi. / Sales2020 0,20x
Capitalization 14 320 M
Chart ORIENTAL ENERGY CO., LTD.
Duration : Period :
Oriental Energy Co., Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ORIENTAL ENERGY CO., LTD.
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 2
Average target price 9,56  CNY
Last Close Price 8,68  CNY
Spread / Highest target 10,1%
Spread / Average Target 10,1%
Spread / Lowest Target 10,1%
EPS Revisions
Managers
NameTitle
Yi Feng Zhou Chairman & General Manager
Tao Feng Chief Financial Officer
Jia Guo Ren Director
Xian Jin Shen Independent Director
Yi Lu Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
ORIENTAL ENERGY CO., LTD.0.11%2 027
PETRONAS DAGANGAN0.29%4 800
RUBIS-26.72%4 385
AMERIGAS PARTNERS, L.P.23.40%3 235
GIBSON ENERGY INC.-37.27%1 743
VIVA ENERGY GROUP LIMITED1.19%1 558