China BlueChem Announces 2012 Annual Results

Hong Kong, Mar 22, 2013 - (ACN Newswire) - China BlueChemical Ltd. ("China BlueChem" or the "Company", stock code: 3983), a leading chemical fertilizers and methanol producer in China, today announced its audited annual results for the year ended 31 December 2012.

In 2012, the PRC government continued to encourage stable increase in grain production throughout the nation by taking concrete actions. Policy support and technological input for increasing grain production was further enhanced, with actual funds committed to the agricultural sector, rural areas and farmers during the year amounted to RMB1,228.7 billion, representing a significant increase of approximately 18% over 2011. Driven by the PRC government policy to enhance, enrich and assist the agricultural sector, cultivated area across the nation has expanded steadily in 2012. In line with the stable development of China's agricultural sector, domestic demand for chemical fertilizers has also increased.

Revenue for the year 2012 amounted to RMB10.739 billion, exceeding RMB10 billion for the first time. Gross profit was RMB3.306 billion. Net profit attributable to owners of the parent was RMB1.81 billion. Basic earnings per share were RMB0.39. In view of the satisfactory results, the Board proposed a final dividend for the year of RMB0.15 per share, dividend payout ratio steadily increased to 38%.

Mr. Yang Yexin, CEO and President of the Company, said, "Due to insufficient gas supply to our production facilities in Inner Mongolia during the first quarter of 2012, as well as the overhauls of three major urea and methanol production facilities in Hainan, our production volume of urea and methanol recorded considerable decrease during the first half. While during the second half, through enhanced HSE standards and refined production management, plus the insufficient gas supply had been resolved before winter with the completion of the second gas pipeline to Hohhot city, we achieved safe and stable operations for all of our urea and methanol production facilities. Annual utilization rates of the urea and methanol production facilities increased to 101% and 99% respectively. We are also pleased to announce that following the trial production starting in April 2012, our DAP phase two facility in DYK, Hubei province, has smoothly transitioned to commercial operations in August, making the Company one of the largest phosphate producers in China with production capacity reaching one million tons. And the new facility reached 100% utilization rate in December 2012, through continuous optimization of its production techniques and equipment management. " During the year, the total sales volume of urea of the Company reached 1,880.7 thousand tons, up 0.7% year-on-year; revenue of this sector amounted to RMB4.080 billion, up 0.8%. Sales volume of phosphate fertilizers recorded a 31.3% annual growth to 564.7 thousand tons. Revenue also jumped 30.4% to RMB1.760 billion. Domestic demand in methanol has also been driven by rapid development of alternative energy and expansion of methanol-to-olefin in China. The total sales volume of methanol was 1,568.6 thousand tons, rising 5.1% year-on-year. Revenue from methanol increased 3.5% year-on-year, and amounted to RMB3.463 billion.

In addition, key projects of the Company progressed smoothly during the year. The coal-based urea project with a total annual production capacity of 520 thousand tons in Hegang, Heilongjiang, advanced vigorously as planned, and the geological exploration report of the ancillary coal mine has also been approved by the government. The project will achieve integration of upstream coal mine and downstream coal-based urea, and will bring significant cost advantage.

Mr. Yang concluded, "Looking forward to 2013, international grain prices will be supported by low grain stock levels around the world, coupled with better global economy. To secure food supply in China, the PRC government will continue to drive increase in grain production. Thus, global demand for chemical fertilizers will grow steadily. Meanwhile, China's 2013 export tariff policy has lowered low-season export tariffs for urea and ammonium phosphate, while export benchmark prices have been raised. Also, the low season export window for ammonium phosphate has been extended one month longer. The policy will promote the export of urea and phosphate fertilizers during low seasons. In addition, the demand for methanol will increase as a result of domestic development of methanol as an alternative energy and expansion of methanol-to-olefin. In face of the opportunities and challenges, we will continue to enhance HSE and production management, strengthen cost and expenses control, improve production and business efficiency, and advance our production projects on schedule. We hope that all of our efforts will create more value for our shareholders."

About China BlueChemical Ltd.

China BlueChemical Ltd. ("China BlueChem") is a listed company that specialises in the development, production and sales of chemical fertilisers and synthetic chemical products. It is one of the largest producers of urea, phosphate and methanol in China in terms of production volume. Currently, China BlueChem's production facilities are located in Hainan, Inner Mongolia and Hubei, China, with a total designed annual production capacity of 1,840,000 tons of urea, 1,000,000 tons of phosphate fertiliser (DAP/MAP), 1,600,000 tons of methanol and 60,000 tons of POM. China BlueChem is a subsidiary of China National Offshore Oil Corp. that mainly engages in oil and natural gas exploration, development, production and sales.

For more information of the Company, please visit the Company's website www.chinabluchem.com.cn .

Source: China BlueChemical Ltd.

Contact:

China BlueChemical Ltd. 
Ms. Wendy Zhang	
Tel: (852) 2213 2502			
zhangxw1@cnooc.com.cn 

Strategic Financial Relations (China) Limited
Ms. Anita Cheung	
Tel: (852) 2864 4827			
anita.cheung@sprg.com.hk 

Ms. Sophie Zhang	
Tel: (852) 2114 4960			
sophie.zhang@sprg.com.hk

Mr. Jason Liang	
Tel: (852) 2864 4899			
jason.liang@sprg.com.hk 

Ms. Eva Liu	
Tel: (852) 2114 4941			
eva.liu@sprg.com.hk 

Copyright 2013 ACN Newswire. All rights reserved.

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