Energy Finance

Energy Finance News Review

State Council Premier Li Keqiang met with Ponta, Premier of Romania at the Great Hall of the People in the afternoon of the Sept. 1st.  After the meeting, the premiers from both countries witnessed the signing of the cooperation agreements for the projects in fields like energy, finance, infrastructure construction, etc. Li Keqiang pointed out that both sides are expected to better play the planning from the economical and trading and endeavor to upgrade the scale and level of the economical and trading association; facilitate the cooperation in energy fields of nuclear power, thermal power, and wind power; accelerate the study about the bullet-train project to be running between Bucharest to Constanta, better the cooperation over key infrastructures, and solidly compact the foundation of the friendly will of the people in the two countries.

State Council Vice Premier Zhang Gaoli met with Russian President Putin in Yakutsk on Sept. 1st and attended the opening ceremony for the pipeline 'Siberian Force' inside Russia of the Sino-Russia East Natural Gas Pipeline together with Putin. And, together with Russian Vice Premier De Wolkowich, presided the 11th Conference of the Sino-Russia Energy Cooperation Commission on August 30th. Zhang Gaoli expressed that the cooperation in energy fields like petroleum, natural gas, nuclear energy, coal, and new energies should be grown altogether, namely the East Line and West Line be constructed altogether, and the upstream and the downstream be facilitated altogether.

The conference for the energy ministers from the member countries of the 2014 Asia-Pacific Economic Cooperation (APEC) was held on the 2nd of September.  The energy ministers from the 21 APEC members and the officials from relevant international organizations got together in Beijing and discuss the road for sustainable growth in Asia and Pacific.  State Council Vice Premier Zhang Gaoli urged various parties to conduct in-depth discussion and cooperation in energy development, endeavor to facilitate energy investments and trading, fortify research and development and promotion of the advanced energy technologies, enhance energy efficiency, strengthen energy security, and jointly establish the Asia-Pacific energy cooperation partnership that face the future.

China Enterprise Association and China Entrepreneur Association announced the 2014 China Enterprise Top 500 in Chongqing on the 2nd of September, and SinoPec ranks the top for ten years continuously with 2.94507 trillion Yuan of business revenue in 2013, and Chna Oil, State Grid, Industrial and Commercial Bank of China, Bank of Construction, Bank of Agriculture, China Construction, China Mobile, Bank of China, and China Off-shore Oil rank from the second to the tenth.

Energy Finance Data Analysis
China5e • Energy Index is a vane of China energy industry development condition, it includes Energy Composite Index, Oil & Gas Index, Power Index, Coal Index and New Energy Index.

  Energy Index of A Week
 

  Shanghai and Shenzhen Composite Index of A Week

Coal & Power

Coal & Power News Review

On August 28, China Coal Industry Association announced the analytical report about the Top 100 of 2014 China Coal Industry. The report shows that, facing the severe economical operations, coal enterprises are speeding organization adjustment and structural transformation and upgrading, however the indications reflecting main business results are falling and more enterprises are suffering from losses, which means they are facing tremendous task in cutting production capacity.

It is learned that the thresholds for being selected this time is based on the business revenue in 2013, and total 100 coal enterprises who ranked as the first 100 in Chinese coal industry in 2014.  In this year, Shenhua Group continues to lead the list with 367.8 billion Yuan revenue, and Shanxi Coke and Coal Group ranked the second position for the first time with 236.1 billion Yuan revenue, and Jizhong Energy Group ranked the third with 229.9 billion Yuan.

The Top 100 enterprises are actively adjust their coal output and have finished 3.005 billion Yuan coal output, rose 6.33% compared with that of the same time period of last year, taking up more than 80% of the total nationwide coal output, which is, specifically speaking 81.66%, set up a coal production enterprise pattern in which there are 8 enterprises whose output reaches 100 million tons; 17 enterprises whose output is 50 million tons; 52 enterprises whose output is above ten million tons. 

However, under the unfavorable situations where coal industry is suffering from 'Cold Winter', the profitability prospect for coal industry is not optimistic at all. Compare with that of last year, the picture for the enterprises selected this time are that their business scale expansion is slow; coal revenue and profit fell; profitability slumped, capital operation efficiency continues to fall; the total of tax paid fell for the first time, and the contribution in form of profit and tax payment fell drastically, etc.

Impacted by the aggregated structural surplus in nationwide coal market and continuous price falling, the total business revenue achieved by the Top 100 enterprises was 4.16 trillion Yuan, rose by 10.03% over that of last year, and growth rate fell by 8.12%, created record low in ten years.

Impacted by the slump of the economical benefits in the industry, coal economy is running with difficulty, and the total net profits achieved by the 100 enterprises is 84.157 billion Yuan, slumped for 44.18% compare with that of last year and, among which, 21 suffer from losses and 77 have seen falling net profit compare with that of the last year.

Coal & Power Data Analysis

  Bohai Thermal Coal Price Index (BSPI) (Unit: yuan / ton).
Published：Sept 3, 2014

Oil & Gas

Oil & Gas News Review

It was proved by the relevant department of China Off-shore Oil General Company on August 30, that the deep sea drilling platform 'Maritime Oil 981' harvested high output oil and gas stream when testing Lingshui 17-2-1 well in the deep sea region in South Sea.  It is estimated that the Lingshui 17-2 is a large type gas field, the very first significant oil and gas discovery in self-exploration in Chinese sea waters.  The Lingshui 17-2 structure is situated at the Lingshui concave in the deep sea region of Qiong Dongnan Basin in South Sea, about 150 kilometer from Hainan Island, and the average depth of operation waters is 1500 metersOn Sept. 1St, Russian President Putin and Chinese Vice Premier Zhang Gaoli attended the opening ceremony for the Pipeline Siberia Force, the section inside Russia of the Sino-Russian Natural Gas Pipeline, signifying that the Sino-Russian natural gas project is in material execution phase, which will significantly deepen the strategic significance of the relations of the two countries.

American crude oil daily output has surpassed that of the Saudi Arabia and Russia and, significant change has taken place in recent years in the U.S. energy industry pattern. And firstly, output increase and use decreased; secondly, the use method has been improved with transportation vehicles have consumed 72% of gasoline and other liquid fuels; and thirdly, besides from self-sufficiency, the U.S is also capable of exporting the oil to the other countries and regions in this world.

It is learned from Liaohe Oilfield that, National Energy Administration most recently formally approved Liaohe Oilfield to organize State Energy Thick (Heavy) Oil Exploration, Research and Development Center.  According to experts, when the center is set up in Liaohe, international cooperation and academic exchange shall be held widely and  the center will become an important platform for international exchange and cooperation in field of thick oil exploration, and shall promote technical renovation and industrialized development for thick oil, guide and lead the thick oil exploration and research of China to be the top in the world, and provide strong technical support to securing national energy and driving regional economic development.

Oil & Gas Data Analysis

  World Crude Oil Price Table

New Energy

New Energy News Review

The Zhongguancun New Energy Sea Water Desalination Critical Technology and Equipment Demonstrative Project ('Membrane') passed the acceptance a few days ago by experts and has formed up packaging technologies for sea water desalination with self-owned intellectual property right. The project has broken foreign monopoly and brought down the cost of desalinating sea water by more than 10%. The technology applied for national patent right in this April.

The exports for nationwide battery industry started to turn positive in the first half of this year.  And according to the China Light-Weight Industry Center, he cumulative exports completed by the nationwide battery industry in the first six months rose for about 12% compared with that of the same time period of last year and, in which, the exports to the U.S. rose faster with an increasing magnitude of 23.9%.

The 11th Energy Ministerial Conference of Asia -Pacific Economic and Cooperation (APEC) was held in Beijing on the 2nd. It was committed in the conference that the renewable energy and its power generations shall double in the energy structures in the region by 2030.

National Energy Administration announced on the 4th the 《Notice on the Relevant Policies about further Implementing Distributed Photovoltaic Power Generations》which offers multiplex specific measures regarding the difficulties on implementing rooftop resources, borrowing and financing, and interconnections, etc.  The policies announced this time encourage multiplex forms of distributed photovoltaic power generations, and besides, the Notice has raised injunction to the 'Local Protection'.

On August 29th, the Ministry of Industrial Technology and Information as well as the Ministry of Finance formally announced the first batch of 《Catalogue for the New Energies Automobiles Exempting from Vehicle Procurement Tax 》，determining the name list for the first batch of new energies automobile satisfactory to the state government supporting standards.  And more than one hundred models of new energies automobiles from more than twenty auto enterprises are on the name list.

It is learned from the Ministry of Industrial Technology and Information on Sept. 5th that, in August of 2014, the output of new energies automobiles in China was 5,191, rose for 11 folds compared with that of the same time period of last year and, in which the output of pure electro-driven passenger vehicles was 2,447, rose for 8 folds compared with that of the same time period of last year. From January to August in 2014, 31,137 new energies automobiles were produced cumulatively speaking, rose for 328% compared with that of the same time period of last year and, in which, 16,276 vehicles are pure electro-driven passenger vehicles, rose for 7 folds compared with that of the same time period of last year.

New Energy Data Analysis

Product	High	Low	Average	Change
Polysilicon	22.50	19.00	20.251	0%
Polysilicon(156mm x 156mm)	1.03	0.80	0.887	0%
Monocrystalline silicon (156mm x 156mm)	1.40	1.10	1.163	0%
Battery	0.48	0.29	0.309	0%
Polysilicon battery (156mm x 156mm)	1.65	1.38	1.535	0%
Monocrystalline silicon battery (156mm x 156mm)	2.10	1.69	1.780	0%
Silicon Components	0.80	0.52	0.563	0%
Thin-film PV modules	0.80	0.60	0.707	0%
Concentrator photovoltaic modules	2.55	2.09	2.303	0%
PV inverter	0.25	0.10	0.182	0%

 

  International Solar Price (Unit: USD)