Gas bills have risen inexplicably, why?

Gas bills have risen inexplicably, why?

Gas bills have risen inexplicably, why?

Author | Cat brother

Source | Big Cat Finance Pro

Chongqing, Chengdu gas bill inexplicably increased this, the government just gave an explanation, here in Nanjing someone said, just take a bath, a month gas fee 130, some people complained on social media, said that 20 days after the meter was changed spent 500 yuan, ask to verify the problem.

In the past, everyone didn't pay much attention to this kind of money like gas bills, but now it has become a wallet assassin.

There is a reason that has to be mentioned here, that is, it is much more difficult for gas companies to make money now than before, and the good days of the past are gone, so everyone is starting to find ways to make more money.

Is it harder to make money from gas? Let's look at a few examples.

China Resources Gas is the major shareholder of Chongqing Gas, the second shareholder of Chengdu Gas, and one of the suppliers in Nanjing.

In previous years, the net profit margin of China Resources Gas was 13%-14%, and life was very comfortable, but recently it fell to about 8%, so it can be said that the earning power has been discounted by six percent.

In 2021, their revenue will be 79.6 billion, and last year's revenue reached 101.3 billion, an increase of 27%, which is not bad.

However, profits can't keep up with the pace of revenue at all, and the net profit attributable to the parent company in 2021 is 6.4 billion, compared with 5.2 billion last year, but it fell by 18%.

However, even if China Resources Gas has fallen so much, the key financial indicators can still beat Chongqing Gas, Chongqing Gas's revenue has been maintained at more than 5 billion for many years, and since China Resources Gas has become their major shareholder, they first made efforts in revenue, and exceeded 10 billion in a few years, but the profit margin has been fluctuating around 5%, which cannot catch up with the level of the major shareholder China Resources Gas, which belongs to the type that has dragged its feet.

Like Shenzhen Gas, it is similar, from 2020 to 2023, the revenue has doubled, from 15 billion to 30.9 billion, but the profit has remained at about 1.2 billion to 1.4 billion, and the profit margin has dropped a lot.

Why has the earning power of gas companies deteriorated?

It's about the same as the banks, the spread is smaller.

The price of natural gas has risen and fallen sharply in recent years, and the requirements for the company's finances are very high, and when it suddenly rises six or seven times, you just finish stocking up, and its price falls again. Costs are changing drastically, and the selling price is basically beyond the control of natural gas companies.

There are now two types of natural gas prices:

1. Residential gas is set by the government, because it is a livelihood project, the price is cheaper, but it is not easy to increase the price, so it is very cautious;

2. Non-residential gas consumption is also controlled by the government, but market-oriented floats are allowed, and the purchase price can be higher if the purchase price is higher.

Therefore, generally speaking, in the business of a gas company, the higher the proportion of residential gas consumption, the worse the company's earning ability will be, because there is no way to increase prices.

Among the four major gas companies, China Resources Gas's residential gas consumption ratio is the highest, especially like Chongqing Gas, 70% of which are residential gas, and the price of gas does not rise, and his profit margin cannot go up.

Gas bills have risen inexplicably, why?

In the past, because the local subsidies were sufficient, these gas companies were quite prosperous, but now there are also difficulties in the local area, so these gas companies have to find their own way.

Most companies don't have much say in cost price and sales price, so which one can do it?

The main thing is to engage in projects, change tables, and earn project costs and installation fees.

Gas bills have risen inexplicably, why?

Don't underestimate this piece, it is very profitable, like Chongqing Gas, although the gas fee contributes 90% of the revenue, it only contributes 10% of the net profit, and the remaining 90% of the net profit comes from the project.

But now the real estate is not good, the natural gas project is also less, and you can't change the watch in the people's homes.

In addition, the government has previously required that the profit margin of the installation engineering business be controlled within 10%, so the pressure on revenue for the average gas company is even greater.

But now, whether it is a central enterprise, a state-owned enterprise or a listed company, the assessment of business indicators is still relatively strict, it is not excluded that some companies because they can not complete the KPI, they will resort to a variety of off-board moves, many abnormal costs have risen sharply in the fourth quarter, always feel like going to school in the end of the holiday two days before the end of the homework, a bit of a surprise to complete the assessment indicators of the meaning.

But now that everyone's eyes are on every expense, this anomaly is easy to spot.

As soon as Chongqing Gas came out, it had a great impact.

The general trend is the increase in natural gas prices, in fact, 125 places, including Shenzhen, have recently notified the price increase, and there may be many cities to follow up, because the price of natural gas in some places has not moved for more than ten years, and everyone feels that it is time to move.

Gas bills have risen inexplicably, why?

This also means that the cost of living for ordinary people will rise, is your wallet ready?

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