We're building a super chaebol in Hong Kong
#330 - Seize development opportunities
In Wesley's office, Wesley and Bertha Gall were receiving Li Yihui, who had come from afar.
Although they were not from the same company, and might not even have any connection with each other, they were all working for the boss, Su Cheng, so it would be best if the two sides could cooperate.
"Mr. Wesley, it's a pleasure to meet you," Li Yihui said with a smile as soon as he saw Wesley.
Although it was the first time he had met Wesley, Wesley, as the president of Hutchison Whampoa Group, and even the chairman of Hutchison Whampoa before Su Cheng took over, often appeared in newspapers and on television. Even in Singapore, there were often news reports about him. He was a complete news figure, so Li Yihui recognized Wesley.
"Mr. Li, hello. Let me introduce you. This is Mr. Bertha Gall, the general manager of our Hutchison Oil Company," Wesley said with a nod and a smile, before introducing Bertha Gall to Li Yihui.
After Li Yihui shook hands with Wesley and Bertha Gall respectively, everyone sat down.
Although Hutchison Oil Company had been cooperating with Tianwen Oil Company, Li Yihui had not been in office for long, so he had not met Bertha Gall either.
"I wonder if Mr. Wesley and Mr. Gall have asked me to come here to discuss something?" Li Yihui asked directly.
"Mr. Gall, why don't you tell him?" Wesley turned to Bertha Gall and said.
Bertha Gall nodded and then said to Li Yihui: "Mr. Li, it's like this. You should be clear about the general situation of our Hutchison Oil Company. Our Hutchison Oil Company currently owns 62 gas stations. Even before the oil crisis, our 62 gas stations were doing very well. As for now, we are almost busy 24 hours a day, so we plan to expand our chain of gas stations. In places like Hong Kong and Malaysia, many gas stations are already closed. We can even expand our business in Indonesia, Thailand, and other places."
"You want us to expand the scale of the refinery?" Li Yihui immediately thought of the key point.
He had been in office at Tianwen Oil Company for some time, and he naturally had a clear understanding of the specific situation of Tianwen Oil Company. Now, the disadvantage of Tianwen Oil Company was its insufficient refining capacity.
The Tuen Mun oil base will become a super-large-scale refining base in the future, but construction takes time, and it will take at least half a year before it can be officially put into operation.
"Mr. Li is indeed smart. That's right, we hope that your company can expand its refining capacity. Now is the best opportunity. I heard that the boss has been asking you to sell crude oil. I think that selling crude oil alone can earn a lot, but if you sell refined products, the profit will definitely be higher. This will benefit both Hutchison Oil Company and Tianwen Oil Company. It can be said to be a win-win situation," Bertha Gall said with a smile.
"I also want to increase production capacity, but you should also know that the Tuen Mun oil base will have to wait at least half a year before it can be officially put into operation," Li Yihui said, shaking his head.
"Mr. Li, we don't know when this oil crisis will end. If we wait for half a year, it may be over. By then, we will have missed the best opportunity for development, so we must seize this most critical opportunity. I think Mr. Li can acquire one or two large refineries or several small refineries. Currently, the most important thing internationally is the shortage of crude oil. Large oil companies can still get crude oil, but small oil companies may not be able to get it. So, if they can't get crude oil, they will definitely not be able to start work and will be losing money every day. This is also the best time for you to acquire refineries," Wesley said at this time.
In fact, Hutchison Oil Company could also acquire refineries on its own, but that would be equivalent to stealing Tianwen Oil Company's business and becoming a competitor. Since they were both Su Cheng's industries, Wesley was afraid that Su Cheng would have some opinions about him, so after discussing with Bertha Gall, he felt that it was best not to get involved in this field and just focus on their sales.
I won't be a producer, I'll just be a sales channel provider, and I can still make a lot of money!
After listening to Wesley's words, Li Yihui did not rush to answer, but thought about the feasibility of this matter.
He had been working at Tianwen Oil Company for almost a month. The current Tianwen Oil Company is indeed still small in scale before the Tuen Mun oil base is officially put into operation.
In the future, if it wants to catch up with world-class oil companies such as Shell, ExxonMobil, and BP, it is impossible to rely solely on the Tuen Mun oil base and the two small refineries on Lamma Island and Singapore.
Now, he is helping Su Cheng sell crude oil, and the money will not go to Tianwen Oil Company's capital account.
Moreover, Wesley was right. It is indeed a bit wasteful to sell crude oil alone. Don't look at the fact that Su Cheng's crude oil now has a fourfold profit, but the products refined by the Lamma Island refinery and the Singapore refinery have a profit that is one times higher than the selling price of crude oil!
In other words, if you refine it before selling it, you can easily earn eight times the oil price!
Especially now, there is no shortage of sales for refined gasoline and diesel!
Mr. Wesley is indeed right. International oil crises are not so easy to encounter. In the development of oil to this day, there have only been two international oil crises. Now is the second time, so if you miss this opportunity for development, you don't know when the next time will be.
Moreover, the boss hoarded crude oil during this oil crisis. The next time there is an oil crisis, he may not be able to hoard oil.
In Li Yihui's view, Su Cheng's ability to hoard oil within two months before the oil crisis occurred was purely good luck!
If these 170 million barrels are all sold as raw materials, the pattern is indeed too small!
In this way, it is better to refine part of it and sell part of it as raw materials.
170 million barrels is a very large amount, and Li Yihui certainly didn't dare to think about digesting it all himself.
But, it's still good to take out a part to digest.
For example, if 70 million barrels of these 170 million barrels of crude oil are put into refineries for refining, then the final profit of these 70 million barrels of crude oil will be a terrifying eight times!
This is much better than selling it all, and I believe the boss will agree.
After thinking for a long time, Li Yihui finally said: "Mr. Wesley, Mr. Gall, you are right. This is indeed a rare opportunity. Thank you for your reminder. I haven't been working at Tianwen Oil Company for long, and I haven't considered too much. I will discuss this matter with the boss immediately, and I will notify you as soon as there is news!" Li Yihui said solemnly.
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