China BlueChemical expects to report CNY50m-80m ($8m-12m) in net profit for the 2017 financial year, helped by higher selling prices on its products and impairment losses. The company said it would cut costs of about $200m this year as part of a plan announced last month that will see it focus more on research and development rather than production. A run up in raw material prices led to testing and aggregate impairment losses of CNY420m-460m being recognised on CNOOC Huahe Coal Chemical's coal-based urea plant and Hubei Dayukou Chemical's phosphate and compound fertiliser plants.
China BlueChemical expects to report CNY50m-80m ($8m-12m) in net profit for the 2017 financial year, helped by higher selling prices on its products and impairment losses. The projected profit stands in contrast to the company's recorded net loss of around CNY216m for the previous year. A run up in raw material prices led to testing and aggregate impairment losses of CNY420m-460m being recognised on CNOOC Huahe Coal Chemical's coal-based urea plant and Hubei Dayukou Chemical's phosphate and compound fertiliser plants.