OREANDA-NEWS. November 27, 2013. Annual northern winter heating to natural gas as a raw material of fertilizer enterprise "injury." To ease tensions with gas, Cangzhou Dahua (600230.SH) was again suspended in the oil supply of natural gas, the company had to stop production of urea plant, which would adversely affect its performance.

However, industry sources said, Cangzhou Dahua discontinued the fertilizer industry and has little effect on the spring next year.

November 12 evening, Cangzhou Dahua announcement that the company received the China National Petroleum Corporation North China Gas Marketing Company (hereinafter referred to as "PetroChina Huabei Branch") notification because North China enters the heating period, the residents use gas soared.

To ensure that residents of northern China cities and gas, according to "protect civilian pressure industrial" principle, PetroChina Huabei Branch will be held from November 12 to suspend the production of natural gas supply Cangzhou Dahua, only to supply and maintain the device warm Residents heating with gas, gas production will be based in North China resources and timely recovery supply temperature conditions.

Cangzhou Dahua mainly in fertilizers, TDI (toluene diisocyanate) for leading products. Has an annual output of 360,000 tons of synthetic ammonia major, 580,000 tons of urea, 150,000 tons of production capacity of TDI, natural gas is the company's main raw materials and fuels.

Zhuo record information analyst Lee "First Financial Daily" correspondent said that as winter heating gas is more nervous, so industrial gas production generally face greater pressure in the winter, especially natural gas as raw material for urea enterprises.

"At present, the country's natural gas production of urea can account for about one third of the total, a year's gas consumption of about 10 billion cubic meters, accounting for nearly 10% of gas consumption. However, because of operating restrictions, the winter will be decreased by 20% to 25%. "Lee?? Believe, Cangzhou Dahua urea discontinued impact was fairly limited, as long as the spring of next year to go up when the supply does not affect agricultural production.

With the North moved into the heating period, the supply of natural gas in North China tension intensified. Recently, the National Development and Reform Commission also issued to ensure continuous supply of natural gas in winter notice. Winter market is also expected in 2013 to the spring of 2014, the domestic natural gas supply gap will be 10 billion to upgrade to 220 billion cubic meters of natural gas last year, the equivalent of about 20% of annual production. The gap will be mainly concentrated in the northern and eastern regions, including North China will account for more than a quarter. Industrial and chemical gas often become "gas shortage" serious fields.

This also is not the first time Cangzhou Dahua stop gas. Last November 24, the company announced that because of the winter heating and gas supply was suspended until the second year in February was gradually restored gas supplies. As PetroChina Huabei Branch Cangzhou Dahua is a major supplier of natural gas, natural gas supply will therefore result in suspension of urea and nitric acid production plant shutdowns, the company is expected to have a certain impact on full-year operating results.

In fact, since 2012 the winter gas supply, Cangzhou Dahua 2013 results have been partially affected. Three quarterly show, this year from January to September, the company achieved operating income of 2.743 billion yuan, representing an increase of 10.70% over the same period last year; but net profit attributable to equity holders was 1.51 million, representing a decrease of 72.15 million yuan last year, 32.66% decrease. The decline in net profit, Cangzhou Dahua in quarterly interpreted as "mainly urea market prices fell more and January gas stop for gas due to be discontinued."

As of November 11, 2013, Cangzhou Dahua actual production was 465,000 tons of urea, have been lower than last year's production level. For this stop gas, Cangzhou Dahua said that in order to reduce losses, the company will stop until gas equipment during maintenance work, while the company will continue to actively contact with the parties concerned, for the fastest time-to stop gas for early recovery production.