BEIJING, Dec. 2, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec") has announced that Dongxiang Autonomous County in Gansu Province has been lifted out of poverty, the last of the eight counties in Sinopec's fixed-point poverty alleviation and pairing program to eradicate poverty.
The previous seven counties in Sinopec's poverty relief program that have overcome poverty are Fenghuang and Luxi counties in Hunan Province, Yingshang and Yuexi counties in Anhui Province, Yopurga County in Xinjiang Uyghur Autonomous Region, Baingoin County in Tibet Autonomous Region and Zeku County in Qinghai Province.
Sinopec has developed precise poverty alleviation plans based on regional characteristics and advantages.
In poverty relief through industrial development, Sinopec has adapted to local conditions and natural endowments to develop specialty industries, such as promoting the quinoa produced in Dongxiang County, the "Sunshine Bazaar" series of dried fruit products in Xinjiang and an "Easy Joy-Zhuoma Spring" project that brings natural drinking water from Tibet to consumers across the country.
In poverty relief through consumption, Sinopec has helped products from the poverty alleviation program to enter the national market through 27,000 gas station convenience stores and seven online poverty relief shopping platforms, with the entire Sinopec system participating proactively in the initiative. In the past two years, Sinopec has helped to sell more than CNY600 million (US$91.40 million) worth of poverty relief products.
In terms of poverty relief through employment, Sinopec has hosted special job fairs in poverty-stricken regions with the goal of "one person's employment lifts a family from poverty". A Sinopec Poverty Alleviation Training Platform was established to offer regular vocational skills and agricultural training.
In promoting poverty relief through education, Sinopec has built 68 schools in designated poverty alleviation regions, purchased more than 30,000 pieces of teaching equipment and issued more than 20 million yuan ($US 3.1 million) in grants. To further support education development in poor areas, Sinopec also opened Spring Buds and Resilient classes for students in need.
In medical poverty alleviation, Sinopec has carried out the Sinopec Lifeline Express Health public welfare project for 16 years, bringing light to more than 46,000 cataract patients in impoverished regions. The company also introduced medical resources from Peking Union Medical College Hospital (PUMC) to poor areas and equipped them with urgently needed medical equipment, while continuing to improve the local medical conditions and make precise poverty alleviation plans.
In the meantime, Sinopec also focuses on improving people's quality of life by implementing a series of livelihood projects including transportation, water supply, lighting, pipelines, water conservation and dilapidated building renovation that effectively addressed and improved the working and living problems of drinking water, electricity, transportation and housing in densely populated areas. These projects promoted the economic development of poverty-stricken areas and built the foundation to eradicate poverty.
"Sinopec will earnestly fulfill its corporate social responsibilities and complete solid work in all aspects to play a pillar role in poverty alleviation, we will continue to aid impoverished counties in the fixed-point poverty alleviation and pairing program, with support not being withdrawn, and Sinopec will consolidate the hard-earned results and push forward rural revitalization, joining hands with the people in poor regions to strive for a well-off future," said Zhang Yuzhuo, chairman of Sinopec.
Sinopec has been actively involved in poverty alleviation since 1988, it has invested more than 2.4 billion yuan (US$ 365.6 million) in support and assistance. As of now, 67 Sinopec affiliated enterprises are carrying out supporting projects in 709 villages, with a total of 1,945 staff members fighting on the frontline of poverty alleviation.
Sinopec has achieved remarkable results in the continuous practice and exploration of precise poverty relief efforts, which led to the establishment of a Sinopec poverty alleviation model that drives industry with consumption, stimulates employment with industry and motivates productive powers in poverty-stricken areas.
For more information, please visit: www.sinopecgroup.com/group
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SOURCE Sinopec
BEIJING, Nov. 24, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec") has established strategic cooperation with three top institutions on November 23 in Beijing, China, to take lead in a joint research on the energy and chemical industry's carbon emissions peak and carbon neutral.
Sinopec invited thought leaders and experts in the fields of climate change, energy and chemical industry to conduct in-depth research on the strategic path of having CO2 emissions peak and achieve carbon neutral before 2030 following China's action plan.
Zhang Yuzhuo, a research fellow and academician of the Chinese Academy of Engineering and chairman of the board of Sinopec, noted that achieving the goal of reaching the CO2 emissions peak and going carbon neutral is both a great responsibility and profound revolution for the energy and chemical industry.
"Sinopec will focus on green and low-carbon development from a strategic and overall perspective and move towards the goal of achieving 'net-zero' unswervingly, the company will follow the trends of global energy reform and general industrial development to study and determine its own strategic goals, key tasks, implementation approaches and guarantee mechanism," said Zhang. "Sinopec will also strengthen the communication and exchanges with government departments and industry associations to better serve and support national and industry-related decisions."
In recent years, Sinopec has promoted its green and low-carbon development tactic for the corporate development strategy, actively control its greenhouse gas emissions to achieve significant carbon emissions results. In the area of clean energy development, Sinopec has expanded its construction of natural gas production capacity and promoted the development of new energy resources such as biomass energy and geothermal energy, while driving forward the development and utilization of hydrogen energy.
To strengthen the company's energy-saving management, Sinopec implements an "energy efficiency improvement" plan that accelerates industrial structure adjustment to phase out the outdated production capacity.
And in terms of greenhouse gas recovery and utilization, Sinopec is focusing on promoting the recovery and utilization of high-concentration CO2 tail gas from refining and chemical enterprises, carrying out CO2 flooding field tests and methane gas release recovery. The carbon trading transaction volume of enterprises participating in the pilot project has reached 11.1 million tons.
Carbon emissions peak refers to the inflection point of total CO2 emission, after which the emissions will begin to decline. The carbon neutral target aims to achieve low-carbon and zero-carbon transformation of energy, realizes zero CO2 emissions, reduce other types of greenhouse gas emissions significantly as well as total man-made greenhouse gas emissions to zero through increasing carbon sinks and artificial negative emission measures.
About Sinopec
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fiber, fertilizer and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world-leading energy and chemical company.
For more information, please visit: www.sinopecgroup.com/group
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SOURCE SINOPEC
AL-KHOBAR, Saudi Arabia, Sept. 11, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec", HKG: 0386), China's leading energy and chemical company, today held a Sinopec Open Day in Saudi Arabia. This "Better Energy, Better Life" event exploring Sinopec's comprehensive, multi-faceted approach to sustainability, is its first virtual, as well as first international Open Day.
To watch the video of Sinopec Virtual Open Day event, please visit: https://www.youtube.com/watch?v=VanwNQqHr8g&feature=youtu.be
A close and deepening cooperation
This online event highlighted Sinopec milestones since its entry into Saudi Arabia in 2000 and provided updates while inviting questions from the global audience.
For over two decades, Sinopec has consistently provided high-quality engineering, technology, and refining services for the Saudi petroleum and petrochemical industry, as well as supplied petroleum and petrochemical equipment, products, and services.
Sinopec, along with local partners, launched a world-class joint venture and cooperation refinery plant. In 2000, Sinopec established its first drilling rig in the country; now, it oversees nearly 70 rigs. With its safe, efficient construction, Sinopec has established a positive reputation in Saudi Arabia.
To propel the development of drilling technology, Sinopec established Sinopec Tech Middle East in Saudi Arabia's Dhahran Techno Valley in 2017, the first Chinese R&D center in the country. This reflected Sinopec's commitment to becoming the world's leading clean energy chemical company through greater cooperation with local communities and the government.
Sinopec is currently carrying out a four-year 3D geophysical prospecting project in the country, with over 1,000 project personnel combating average highs of 50° Celsius of daily basis in a desert zone covering more than 200km2. Since entering Saudi Arabia in 2004, the Sinopec Exploration team has completed nine geophysical prospecting projects marked by its leading technology and outstanding health safety & environment performance.
In 2008, the Sinopec Training Center opened in Saudi Arabia to train local petroleum engineering personnel. As Sinopec's first overseas training center, it has since hosted 1,310 training courses and trained over 30,000 employees, in addition to cooperating with Saudi Aramco Training and multinational training institutions. The training center is also an important venue for Sino-Arab cultural exchange with a Silk Road bookstore for students to learn about Chinese culture.
To help Saudi Arabia realize its 2030 vision of building up a vibrant society, a thriving economy, and an ambitious nation, Sinopec is also constructing over 30 city overpasses and passages in Saudi Arabia, creating a 600km domestic water transportation system from Yanbu to the holy city of Medina as well as a 300km irrigation system.
Concurrent with this virtual open day event, Sinopec released the book "My 100 Overseas Colleagues", which tells the stories of Sinopec employees around the world. Meanwhile, Sinopec has also launched Sinopec Russia account on Facebook, Twitter, and VK to highlight its local appearance.
A growing international presence
Sinopec has 327 offices, 350 ongoing projects, and 52,000 international employees across 60 countries and regions around the world. Its overseas assets total more than RMB 600 billion. In line with the Belt and Road Initiative, Sinopec forged energy partnerships on an international level to establish new platforms for global, win-win cooperation. It is dedicated to assisting Belt and Road Initiative countries such as Saudi Arabia, Russia, and Kuwait as they transform from resource-exporting countries to resource-processing countries, steering forward in their sustainable development.
In uncertain times, Sinopec has continued to work with local governments to battle the Covid-19 pandemic, promote the resumption of production and projects, and ensure the health of its employees around the world.
About Sinopec
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
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SOURCE Sinopec
ZHOUSHAN, China, June 12, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec"), China's leading energy and chemical company, has successfully installed the world's first and largest slurry-bed residue hydrogenation reactor of 3,000 tonnage in 15 hours on June 10 in Zhoushan, China, setting China's new record of highest integral hoisting weight by a single equipment.
Designed by Sinopec Engineering, the largest single-unit hydrogenation reactor in the world weighs 3,025 tons, which is the equivalent of 17 blue whales, the biggest animal on earth, and has a height of 72 meters (236.2 feet) that corresponds to a 26-story building. The reactor's outside diameter is 6.156 meters (20.2 feet) and has a wall thickness of 320mm. It's the core equipment of Zhejiang Petroleum & Chemical's 40-million-ton/year refining-chemical integration project, phase II.
The record-breaking installation adopted the 5,200-ton slidable hydraulic gantry lifting system for the main hoisting task, and a 2,000-ton XGC28000 crawler crane coordinated the lift from the other end.
The 5,200-ton hydraulic gantry lifting system has the advantages of lifting heavy weights, shifting integrally, and requiring fewer steps of assembly & disassembly of the middle tower, this solution effectively minimized the impact on the construction site and shortened the overall construction period.
The 5,200-ton hydraulic gantry lifting system will be relocated integrally to prepare for the lifting and installation of the second hydrogenation reactor, it will complete six more similar hoisting tasks in the coming months.
About Sinopec
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fiber, fertilizer and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets "Fueling Beautiful Life" as its corporate mission, puts "people, responsibility, integrity, precision, innovation and win-win" as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green & low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
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SOURCE Sinopec
BEIJING, May 11, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec"), China's leading energy and chemical company, was named the number one brand in China's energy and chemical industry in terms of brand value at China Brand Day 2020, held on May 10.
In the valuation of Chinese brands released as part of the day's activities, Sinopec's brand value reached RMB 299.1 billion, an increase of RMB 17.3 billion year-on-year, making it the top brand in China's energy and chemical industry and the second most valuable brand in the country.
The value of Sinopec's sub-brands has also surged. Easy Joy's brand value reached RMB 16.1 billion, up by RMB 4.6 billion, while Great Wall Lubricant's brand value reached RMB 7.7 billion, up by RMB 600 million. Meanwhile, Epec.com is now valued at RMB 9.8 billion and Sinopec "Donghai" Asphalt at RMB 1.2 billion.
Under the guidance of the State Administration for Market Regulation, China Brand Day is jointly organized by the China Council for the Promotion of International Trade, China Council for Brand Development, China Appraisal Society, and other organizations dedicated to propelling China's transformation from manufacturing-led to innovation-driven, from unparalleled speed to unsurpassed quality, and from product fabrication to brand creation. The seventh China Brand Day, this year saw 830 brands apply for consideration, after which they were subject to a rigorous set of criteria. In the end, the brand value of 564 brands were announced on China Brand Day, totaling RMB 7.3563 trillion in value.
For the last 37 years, Sinopec has been committed to forging cleaner energy and chemical products through respondible, practical action. Now, it is focused on developing its brand and defining its contribution to society. In March of this year, Sinopec issued its "Guiding Opinions on Strengthening the Construction of the Sinopec Brand", which clarified, for the first time, its brand concept of focusing on the sustainable development of the energy and chemical industry through innovation and responsibility, to create better lives and become a world-leading, best-in-class brand.
To enhance employee brand awareness and further build up its brand, Sinopec also joined hands with the China Association for Quality to launch the "Brand Excellence and Effectiveness: 10 Outstanding Brand Marketing Cases" initiative to encourage communication and sharing between the company's different sub-brands and divisions, in the aim of cultivating a robust and dynamic company culture.
With its brand valuation as recognition of its achievements, Sinopec will continue to enhance its brand and focus on creating positive impact in society.
About Sinopec
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
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SOURCE Sinopec
BEIJING, April 30, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 00386; SSE: 600028; NYSE: SNP) today announced its unaudited first quarterly results for the three months ended 31 March 2020.
Financial Highlights
Operating Review
In the first quarter of 2020, as the COVID-19 outbreak spread worldwide, the world economy faced mounting downside risk packing with notably increasing instability and uncertainty. China's GDP decreased by 6.8% year on year. Due to plunging market demand for petroleum and petrochemical products coupled with slump of crude oil price, oil and gas industry was severely impacted.
Facing the complicated and severe situation, the Company adhered to the principles of "concentrating material tasks, system optimisation, controlling risk and seizing opportunities out of crisis", coordinated epidemic prevention and control with work resumption, brought our advantages of integrated business into full play, optimised production plan, refined operation plan, adjusted products slate, optimised inventory, expanded market, and tapped potentials and reduced cost to minimize the negative impact and maintained safe and steady operations. In particular, to combat the COVID-19, we maintained a stable supply of oil and gas, made great efforts to increase production of medical-use materials, coordinated online and offline non-fuel business to facilitate our customers with wider variety of products and services, and advanced resumption of work and production with industry chain partners.
In accordance with China Accounting Standards for Business Enterprises, net profit attributable to equity shareholders of the Company was RMB -19.782 billion. In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB -19.145 billion.
Exploration and Production: Under low crude oil price environment, we pressed ahead with high-efficiency exploration and paid more efforts on profit-oriented development, reduced cost and expenditure on all fronts and accelerated the formation of an integrated value chain of natural gas business including production, supply, storage and marketing. In exploration, we focused on organisation and operation of major projects and new discovery breakthrough. In crude oil development, we pushed to build profitable production capacity, and deepened structure adjustment in mature oil fields. In natural gas development, we expanded the market and promoted a coordinated growth along the value chain. In the first quarter, oil and gas production of the Company was 112.28 million barrels of oil equivalent, among which the production of crude oil was broadly flat compared with the same period of last year. Exploration and Production Segment realised an operating profit of RMB 1.518 billion.
Exploration and Production | Unit | Three-month period ended | Changes | |
2020 | 2019 | (%) | ||
Oil and gas production | million boe | 112.28 | 113.46 | (1.0) |
Crude oil production | million barrels | 70.65 | 70.81 | (0.2) |
China | million barrels | 62.11 | 61.55 | 0.9 |
Overseas | million barrels | 8.54 | 9.26 | (7.8) |
Natural gas production | billion cubic feet | 249.68 | 255.79 | (2.4) |
Realised crude oil price | USD/barrel | 49.15 | 57.66 | (14.8) |
Realised natural gas price | USD/thousand | 6.43 | 7.07 | (9.2) |
Conversion: For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil, |
Refining: Facing severe situation of plunged market demand, high-level inventory and slump of crude oil price, we persistently coordinated the integration of production and marketing, optimised allocation of resources and product slate based on market demand and continuously implemented low sulfur fuel oil projects. We coordinated domestic and overseas markets and increased the export of refined oil products, maintaining a steady operation of refining facility. In the first quarter, refinery throughput was 53.74 million tonnes, decreased by 13% year on year. The refining segment's operating loss was RMB 25.794 billion.
Three-month period ended | Changes | |||
(%) | ||||
Refining | Unit | 2020 | 2019 | |
Refinery throughput | million tonnes | 53.74 | 61.78 | (13.0) |
Gasoline, diesel and kerosene | million tonnes | 33.00 | 39.44 | (16.3) |
Gasoline | million tonnes | 13.02 | 15.87 | (18.0) |
Diesel | million tonnes | 14.19 | 16.03 | (11.5) |
Kerosene | million tonnes | 5.79 | 7.54 | (23.2) |
Light chemical feedstock | million tonnes | 9.84 | 10.07 | (2.2) |
Light product yield | % | 75.31 | 76.14 | (0.83) |
percentage | ||||
Refining yield | % | 94.64 | 94.76 | (0.12) |
percentage | ||||
Note Including 100% production of domestic joint ventures. |
Marketing and Distribution: To address the dramatic decline of market demand, we enhanced market analysis, pressed ahead measures for market expansion, promoted targeted marketing strategy and tapped the potentials of distribution network. We innovated the non-fuel business model by coordinating online and offline business with wider variety of products and services to facilitate our consumers. In the first quarter, total sales volume of refined oil products was 53.68 million tonnes and marketing and distribution segment's operating loss was RMB 1.536 billion.
Marketing and Distribution | Unit | Three-month period ended | Changes | |
2029 | 2019 | (%) | ||
Total sales volume of refined oil | million tonnes | 48.61 | 62.37 | (22.1) |
Total domestic sales of refined oil | million tonnes | 32.48 | 45.61 | (28.8) |
Retail | million tonnes | 21.83 | 30.20 | (27.7) |
Direct sales & Distribution | million tonnes | 10.65 | 15.41 | (30.9) |
Throughput per station | tonnes | 2,844 | 3,939 | (27.8) |
Note: The total sales volume of refined oil products includes the amount of trading volume |
Chemicals: Under the circumstances of dramatic demand decline and price tumble of chemical products, we actively optimised resources allocation, reduced feedstock cost, adjusted operation plan and enhanced the dynamic optimisation of facilities and product chain, and improved the utilisation and production scheduling based on market demand. Giving full play to our industry advantages, we extended business value chain by increasing production of medical-use materials to ensure market supply. We put more efforts on market expansion to create space for production optimisation and adjustment as well as facilities stable operation. In the first quarter, the ethylene production was 3.026 million tonnes, being flat compared with the same period of last year, synthetic resin production increased by 2.8% year on year. The total chemical sales volume was 17.95 million tonnes. The Chemical segment's operating loss was RMB 1.568 billion.
Chemicals | Unit | Three-month | Changes | |
period ended 31 March | (%) | |||
2020 | 2019 | |||
Ethylene | thousand tonnes | 3,026 | 3,049 | (0.8) |
Synthetic resin | thousand tonnes | 4,293 | 4,178 | 2.8 |
Synthetic rubber | thousand tonnes | 256 | 271 | (5.5) |
Monomers and polymers for | thousand tonnes | 2,333 | 2,575 | (9.4) |
Synthetic fibre | thousand tonnes | 266 | 322 | (17.4) |
Note: Including 100% production of domestic joint ventures. |
Capital expenditure: In the first quarter, total capital expenditures of the Company was RMB 13.2 billion. Capital expenditure for the exploration and production segment was RMB 6.1 billion, mainly for Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas projects. Capital expenditure for the refining segment was RMB 2.4 billion, mainly for Zhongke Refining and Petrochemical project, Zhenhai, Tianjin, Maoming and Beihai refining upgrading projects, low sulfur fuel oil projects and high-end carbon materials projects. Capital expenditure for the marketing and distribution segment was RMB 2.6 billion, mainly for construction of service stations, refined oil products depots and non-fuel businesses. Capital expenditure for the chemicals segment was RMB 2.1 billion, mainly for Zhongke, Zhenhai, Gulei, Zhonghan, Hainan projects.
Business Prospects
China's epidemic prevention and control trend has been further consolidated, the country's economic and social activities have gradually returned to normal, the production and living order has been restored at a faster pace, and the pent-up demand for petroleum and petrochemical products is being released. Under this opportunity, we have initiated a campaign that will last for 100 days to address the tough challenges and to improve performance. With management and staffs joint efforts, we are to reinforce measures on market expansion, operations optimisation, cost reduction, tapping potentials, and maintaining safe and steady operations.
We will adjust dynamically the production and operation arrangement and the investment plan, focusing on achieving a high-quality and more profitable operation. While ensuring prevention and control of the pandemic and maintaining safe and stable operation, we will give priority to the following tasks:
More vigorous efforts on market expansion. We will keep pace with the market recovery and the industry utilisation rate to seize the market opportunities, provide targeted services to reinforce the market share. Through innovation of business model and analysis of consumption demand changes, we will exploit potential demand to expand market share. By giving full play to the advantages of the industry chain, we will strengthen cooperation with partner and realise coordinative development.
More vigorous efforts on optimisaiton and adjustment. We will bring our advantages of integrated business into full play, refine the allocation of resources, and coordinate all the activities including procurement, transportation, production, storage and marketing. In the E&P segment, we will strengthen the overall coordination of "investment, reserves, output, cost, and profit". In the mid- and down-stream, we will coordinate the operation, feedstock slate, product mix and regional resources, accelerate advantages cultivation and production capacity building, and reinforce the effort in the integration of the production with the marketing.
More vigorous efforts on tapping potentials and cost reduction. We will conduct fine management and strengthen cost control involving all employees, covering all resources and conducting in all processes. We will improve the capital efficiency, expand financing channels and reduce financing cost.
Appendix: Principal financial data and indicators
Principal financial data and indicators prepared in accordance with CASs | |||
Units: RMB million | |||
Items | As of 31 2020 | As of 31 2019 | Changes from the end |
Total assets | 1,807,539 | 1,755,071 | 3.0 |
Total equity attributable to equity | 712,350 | 739,169 | (3.6) |
Units: RMB million | |||
Items | Three months ended 31 March | Changes over the | |
2020 | 2019 | ||
Net cash flow from operating activities | (68,125) | (14,609) | - |
Operating income | 555,502 | 717,579 | (22.6) |
Net profit attributable to equity | (19,782) | 14,763 | - |
Net profit attributable to equity | (20,444) | 14,370 | - |
Weighted average return on net | (2.73) | 2.03 | (4.76) percentage |
Basic earnings per share (RMB) | (0.163) | 0.122 | - |
Diluted earnings per share (RMB) | (0.163) | 0.122 | - |
Extraordinary gain/loss items | During the reporting period |
(gains)/loss (RMB million) | |
Net gain on disposal of non-current assets | (60) |
Donations | 73 |
Government grants | (1,164) |
Gains on holding and disposal of various investments | (26) |
Other extraordinary income and expenses, net | 255 |
Subtotal | (922) |
Tax effect | 234 |
Total | (688) |
Attributable to: | |
Equity shareholders of the Company | (662) |
Minority interests | (26) |
Principal financial data and indicators prepared in accordance with IFRS | |||
Units: RMB million | |||
Items | As of 31 March 2020 | As of 31 December 2019 | Changes from the end |
Total assets | 1,807,539 | 1,755,071 | 3.0 |
Total equity attributable to | 711,343 | 738,150 | (3.6) |
Units: RMB million | |||
Items | Three months ended 31 March | Changes over the | |
2020 | 2019 | ||
Net cash generated from operating | (68,125) | (14,609) | - |
Operating profit | (26,305) | 24,841 | - |
Net profit attributable to shareholders | (19,145) | 15,468 | - |
Basic earnings per share (RMB) | (0.158) | 0.128 | - |
Diluted earnings per share (RMB) | (0.158) | 0.128 | - |
Return on net assets (%) | (2.69) | 2.09 | (4.78) percentage points |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
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SOURCE China Petroleum & Chemical Corporation
BEIJING, April 22, 2020 /PRNewswire/ -- A close-up video of production lines in Sinopec ("Sinopec", HKG: 0386) Yanshan Factory was recorded and released on the social account of Stuart, a British vlogger who lived in China, to showcase how disposable facial masks and KN95 masks are made from polypropylene grain into masks with vacuum-sealed packages.
The video went viral with 1.5 million views in hours. To watch the video of how a mask being made, please visit https://youtu.be/OioiItQq0Kk.
"A production line built in 12 days and it's turning out this much produce. Amazing," Stuart commented. In the video, Stuart started his one-day tour from fabric manufacturing - adding the polypropylene grain to the machine to be melted and extruded into a meltblown non-woven fabric sheet. Automatic production line makes the manual work easy in high yield ratio. Stuart followed the instructions of Xingqi Wang, the Manufacturing Director of Plasthetics in Sinopec Yanshan Factory, to help rolling the fabric to a cardboard and pack into mask-made preparation set.
To date, four meltblown non-woven fabric production lines of Sinopec Yanshan Factory have achieved mass production. With a daily production capacity of 12 tons, Sinopec Yanshan Factory can provide key raw materials for 12 million medical masks on a daily basis. 245.39 tons of meltblown non-woven fabrics have been produced. 17.97 tons are special meltblown non-woven fabrics for KN95 masks, which further eases the market demand for medical masks' raw materials, and provides strong support for fighting the COVID-19 epidemic.
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies.
In addition, Sinopec is engaged in the research, development and application of energy technologies. With a corporate mission of "Fueling Beautiful Life," Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green & low-carbon growth to build a world-leading energy and chemical company.
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SOURCE Sinopec
BEIJING, April 10, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or "the Company") (HKEX: 00386; SSE: 600028; NYSE: SNP) announced that it has filed its 2019 Annual Report on Form 20-F with the United States Securities and Exchange Commission ("SEC").
The 2019 Annual Report is posted on the Company website at www.sinopec.com and can also be accessed electronically at www.sec.gov. Upon request, the Company will also deliver free of charge within a reasonable time a hard copy of its 2019 Annual Report, including its complete audited financial statements.
To request a hard copy, please contact the Company's Investor Relations team by telephone at +86 10 5996 0028, by e-mail at ir@sinopec.com or by written request to Board Secretariat at No. 22 Chaoyangmen North Street, Chaoyang District, Beijing 100728. Re: 2019 Annual Report.
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About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
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SOURCE China Petroleum & Chemical Corporation
BEIJING, March 30, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2019.
Financial Highlights
Business Highlights
In 2019, the global economy slowed down while China maintained an overall stable with its gross domestic product (GDP) up by 6.1%. International oil prices fluctuated in a wide range while domestic market saw rapid growth demand for natural gas and fierce competition in oil products due to abundant supply, and chemicals prices decreased. The Company actively addressed market changes by pursuing innovative, coordinated, green, open and shared development. Through implementing specialized development, market-oriented operation, internalisation and overall coordination, we pushed forward all aspects of our work, and achieved solid operating results.
Mr. Zhang Yuzhuo, Chairman of Sinopec Corp. said, "In 2019, global economy slowdown while China's economy remained overall stable. With international oil prices fluctuating within a wide range and new production capacity for refinery and petrochemicals being excessively released, market competition increased dramatically. As a result, the internal and external risks and challenges faced by the Company have increased significantly. In such a complicated and difficult market, with focus on both short and long-term goals in mind, the Board of Directors adhered to the guideline of pursuing progress while maintaining stability. Furthermore, it concentrated on modernizing the company's corporate governance systems and capabilities, and deepening reforms to sustain continuous growth and development. Under the management's leadership, our employees demonstrated dedication and a conscientious and responsible work spirit, and implemented all practices with discipline and in a professional manner. Significantly, the Company achieved better than expected operating results and made new progress in all fronts as we continuously deepened reform, exercised effective risk management, stabilised growth, and adjusted the operating structure while guaranteeing safety. Looking into 2020, the global economy will face more instability and uncertainty brought by the outbreak. Although the Chinese economy may be temporarily impacted, China's solid economic fundamentals will remain unchanged. We believe that as the control and prevention of outbreak continues to improve domestically, the domestic demand for petroleum and petrochemical products that was suppressed and frozen will rebound quickly.the Company will continue to adhere to the overall strategy of "making progress while maintaining stability," and to that end will implement new development philosophies and energy security strategies, as well as further strengthen corporate governance. The Company will also continue to focus on supply-side structural reform and continue to leverage its advantages of integration, aiming to realize a development pattern with energy resources as the backbone, clean energy and synthetic materials as two development wings, and new energy, new economies, and new fields as important growth points. The Company will continue to deepen the reform of its systems and mechanisms, further improve its corporate governance system and enhance governance capabilities. With headquarters acting as the center of restructuring, the Company will further advance reforms of its management system and market-oriented operation mechanism. It will strengthen construction of its systems, improve management, and better mobilize initiatives in every aspect so as to constantly increase the ability to create synergies, raise efficiency and mitigate risks. I firmly believe that with the concerted efforts of our Board of Directors, management and entire staff, as well as support from our shareholders and the community, Sinopec Corp. will surely develop in distinct ways that are more efficient and of higher quality, which in turn will create greater value for shareholders and the community."
Business Review
Exploration and Production
In 2019, we implemented the action plan of redoubling efforts in oil and gas exploration and production, actively pressed ahead with high-efficiency exploration and profit-oriented development, accelerated the systematic integration of natural gas production, supply, storage and marketing, continuously reduced cost and expenditure on all fronts, and achieved tangible results in maintaining oil production, increasing gas output and cutting cost. We reinforced venture exploration and preliminary exploration in new areas which led to new discoveries in Tarim, Sichuan and Erdos basins. The Company's newly added proved reserves in China reached 587 million barrels of oil equivalent, with domestic reserve replacement ratio at 138.7%. In crude oil development, we proceeded with the capacity building in Shunbei oilfield, strengthened profitable production capacity of hard-to-recover reserves in mature fields, intensified EOR technology breakthrough and application, and ensured steady production. In natural gas development, we constantly pushed forward capacity building in Fuling, Weirong, and West Sichuan gas fields, expanded the market and sales, and promoted coordinated development along the value chain. The Company's production of oil and gas reached 458.92 million barrels of oil equivalent, with domestic crude production reaching 249.43 million barrels and natural gas production totaling 1,047.78 billion cubic feet, up by 7.2% year on year.
In 2019, the operating revenues of this segment was RMB 210.7 billion, representing an increase of 5.3% over 2018. This was mainly attributed to the rise of realised price and sales volume in natural gas as a result of the expansion of natural gas business. In 2019, the operating profit of the exploration and production segment was RMB 9.3 billion, representing an increase of RMB 19.4 billion compared with 2018. The segment reinforced efficient exploration and profit-oriented development, enhanced stable production of crude oil, accelerated construction of natural gas production-supply-storage-sale system and actively expanding market and promoting sales, strengthened cost control, and effectively improved profitability.
Exploration and Production: Summary of Operations
Twelve-month periods ended 31 | Changes | ||
2019 | 2018 | % | |
Oil and gas production (mmboe) | 458.92 | 451.46 | 1.7 |
Crude oil production (mmbbls) | 284.22 | 288.51 | (1.5) |
China | 249.43 | 248.93 | 0.2 |
Overseas | 34.79 | 39.58 | (12.1) |
Natural gas production (bcf) | 1,047.78 | 977.32 | 7.2 |
Refining
In 2019, with market-oriented approach, we optimised product mix to produce more gasoline and jet fuel, increased production of high value-added products, and lowered diesel-to-gasoline ratio to 1.05. We optimised the production plan for low sulfur fuel oil and reduced cost. We leveraged our advantage in production and sales, and moderately increased export of oil products to keep a relatively high utilization rate. We promoted quality upgrading projects and made structural adjustments, comprehensively optimized production and ensured safety and reliability of the refining facilities. We improved the marketing and distribution systems and realised a growth momentum in high grade lubricants and grease, LPG, asphalt and sulphur. In 2019, the Company processed 249 million tonnes of crude oil, and produced 160 million tonnes of refined oil products, up by 3.4%, with gasoline and kerosene up by 2.6% and 7.8% respectively year on year.
In 2019, the operating revenues of this segment was RMB 1,224.2 billion, representing a decrease of 3.1% over 2018. This was mainly attributed to the decrease in products prices compared with the same period of last year. In 2019, the unit refining cash operating cost (defined as operating expenses less the processing cost of crude oil and refining feedstock, depreciation and amortisation, taxes other than income tax and other operating expenses, then divided by the throughput of crude oil and refining feedstock) was RMB 178 per tonne, a decrease of 1.4% over 2018. In 2019, the operating profit of the segment totaled RMB 30.6 billion, representing a decline of RMB 24.2 billion compared with 2018.
Refining: Summary of Operations
For the twelve months | Changes | ||
2019 | 2018 | (%) | |
Refinery throughput (million tonnes) | 248.52 | 244.01 | 1.8 |
Gasoline, diesel and kerosene | 159.99 | 154.79 | 3.4 |
Gasoline (million tonnes) | 62.77 | 61.16 | 2.6 |
Diesel (million tonnes) | 66.06 | 64.72 | 2.1 |
Kerosene (million tonnes) | 31.16 | 28.91 | 7.8 |
Light chemical feedstock production | 39.78 | 38.52 | 3.3 |
Light yield (%) | 76.38 | 76.00 | 0.38 percentage |
Refining yield (%) | 94.98 | 94.93 | 0.05 percentage |
Note: Includes 100% of the production of domestic joint ventures.
Marketing and Distribution
In 2019, confronted with fierce market competition, the Company brought our advantages of integrated production and marketing network into full play, adhered to the guideline of "achieving gains in both sales volume and profits", coordinated allocation of resources, expanded sales and increased profit, and achieved sustained growth in both total sales volume and retail scale. With focus on customer need, we adopted a flexible and targeted marketing strategy, and improved our services. We upgraded our distribution network to further strengthen our existing advantages. We accelerated the construction and operation of CNG stations and explored the development of hydrogen fueling stations. Total sales volume of refined oil products for the year was 255 million tonnes, up by 7.3% year on year, of which domestic sales volume accounted for 184 million tonnes, up by 2.3%. Meanwhile, we strengthened development and marketing of company-owned brands, and promoted the innovation of non-fuel business model and its market-oriented reform, to speed up the development of non-fuel business.
In 2019, the operating revenues of this segment was RMB 1,431 billion, representing a decrease of 1.1% over 2018. In 2019, the operating profit of this segment was RMB 29.1 billion, representing an increase of 24% compared with 2018.
Marketing and Distribution: Summary of Operations
For twelve months | Changes | ||
2019 | 2018 | % | |
Total sales volume of refined oil products | 254.95 | 237.69 | 7.3 |
Total domestic sales volume of refined oil | 184.45 | 180.24 | 2.3 |
Retail (million tonnes) | 122.54 | 121.64 | 0.7 |
Direct sales and Wholesale | 61.91 | 58.61 | 5.6 |
Annualised average throughput per station | 3,992 | 3,979 | 0.3 |
As of 31 | As of 31 | Changes | |
Total number of Sinopec-branded service | 30,702 | 30,661 | 0.1 |
Company-operated | 30,696 | 30,655 | 0.1 |
Chemicals
In 2019, the Company followed the development philosophy of "basic plus high-end", sped up advanced capacity building, and optimised business portfolio layout. We persistently fine-tuned chemical feedstock mix to increase the yield and lower cost. We optimized products slate, enhanced integration among production, marketing, R&D and application, vigorously promoted the development and application of new products, and raised the proportion of new and specialty products. We further adjusted facility structures to enhance the dynamic optimisation of facilities and product chain, and improved the utilisation based on market demand. Ethylene production in 2019 reached 12.49 million tonnes, up by 8.5% year on year. The differential ratio of synthetic fiber reached 90%, and the ratio of new and specialty products in synthetic resin reached 65.3%. We also promoted targeted marketing and service to further expand our business, with total chemical sales volume increased by 3.3% to 89.50 million tonnes, realising full sales.
In 2019, the operating revenue of the chemicals segment was RMB 495.2 billion, representing a decrease of 9.4% as compared with that of 2018. This was mainly due to sharp decrease in prices of chemical products as a result of the concentrated release of new capacity, as well as the change of supply-demand structure. In 2019, confronted with the business cycle correction and decreased chemical margin, the Company strengthened the coordination among research, development, production and marketing, continuously reinforced the profit prediction based on the market, optimised the structures of feedstock, product and facilities,, intensified allocation of resources, pushed ahead with targeted marketing and precise service strategy, and achieved steadily growing sales volume of petrochemicals. The operating profit of this segment was RMB 17.2 billion.
Major Chemical Products: Summary of Operations | Unit of production: 1,000 tonne | ||
For twelve months | Changes | ||
2019 | 2018 | (%) | |
Ethylene | 12,493 | 11,512 | 8.5 |
Synthetic resin | 17,244 | 15,923 | 8.3 |
Synthetic fiber rubber | 1,047 | 896 | 16.9 |
Synthetic fiber monomer and polymer | 10,029 | 9,343 | 7.3 |
Synthetic fiber | 1,289 | 1,218 | 5.8 |
Note: Includes 100% of the production of domestic joint ventures.
Research and Development
In 2019, with the emphasis on innovation-driven strategy, the Company accomplished notable results in deepening reform of R&D mechanism, promoting innovation platforms such as joint R&D centers and incubators, and making breakthrough in key and frontier technologies. In upstream, research in gas enrichment theory and exploration technologies of marine phase medium and large gas fields in Sichuan Basin made headway, leading to breakthrough in gas reserve. Our proprietary rotary steering drilling system was successfully applied in Shengli oilfield. In refining, we developed various formulations for low sulphur fuel oil and passed engine tests and endurance tests. Our high-grade gasoline and diesel engine oil met the latest international standards and realised industrial production and commercialization. In chemicals, the start-up of the second generation high-efficiency and environment-friendly aromatics facilities was successfully started up. The anthraquinone method of producing hydrogen peroxide in fluidised-bed reactor and PPTA technology realised industrialization. In addition, the framework type code of a novel structured zeolite SCM-15 synthesised by us has been approved by the Structure Commission of International Zeolite Association. In 2019, the Company had 6,160 patent applications at home and abroad, among which 4,076 were granted. We also won six second prizes of National Sci-Tech Progress and one second prize of NationalTechnology Invention, and one gold, three silver and three excellent prizes of National Patent Awards.
Health, Safety, Security and Environment
In 2019, the Company constantly promoted and fully implemented the HSSE management system. We enhanced overall health management, and established safeguarding mechanism for occupational, physical and psychological health. We surveyed and rectified safety hazards, took stringent measures to control risks and supervise safety and operations of contractors, and achieved sound results. We upgraded our capacity in all-dimension risk prevention and control as well as emergency response, further enhancing security management. In 2019, we actively practiced green and low-carbon growth strategy, further promoted the green enterprise campaign and ecological conservation, and accomplished all emission reduction targets. Compared with 2018, energy consumption per 10,000 yuan of output was down by 0.4%, industrial fresh water usage was down by 1.1%, COD of discharged water down by 2.1%, and SO2 emissions down by 3.9%. All solid waste was properly treated. For more detailed information, please refer to "Communication on Progress for Sustainable Development 2019 of Sinopec Corp."
Capital Expenditures
In 2019, focusing on quality and profitability of investment, the Company continuously optimised its capital projects, with total capital expenditures of RMB 147.1 billion. Capital expenditure for the exploration and production segment was RMB 61.7 billion, mainly for Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas projects, phase I of Xinqi gas pipeline, phase I of Erdos-Anping-Cangzhou gas pipeline, Qingdao-Nanjing gas pipeline, Wen 23 and Jintan gas storage projects, as well as overseas projects. Capital expenditure for the refining segment was RMB 31.4 billion, mainly for Zhongke Refining and Petrochemical project, Zhenhai, Tianjin, Maoming and Luoyang refining upgrading projects. Capital expenditure for the marketing and distribution segment was RMB 29.6 billion, mainly for construction of service stations, oil products depots, pipelines and non-fuel business. Capital expenditure for the chemicals segment was RMB 22.4 billion, mainly for Zhongke, Zhenhai, Gulei and Hainan projects, ethylene revamping for Sinopec-SK and Sinopec-SABIC projects, phase II of Hainan high-efficiency and environment-friendly aromatics project, Sinopec-SABIC polycarbonate project and Zhongan coal chemical project. Capital expenditure for corporate and others was RMB 2 billion, mainly for R&D facilities and information technology projects.
Business Prospects
In 2020, despite the increasing instability and uncertainty of the international political and economic situation, and the inevitable impact on China's economy by coronavirus outbreak in the short term, we expect the fundamentals sustaining sound economic growth in China to remain unchanged. Domestic demand for energy and chemical products will be relatively weak in the first half, but the accumulated demand is expected to be released rapidly after outbreak. Considering oil-producing countries' abundant supply capacity, global demand growth, inventory levels, and geopolitics, we expect that the international oil prices will fluctuate at a low level.
In 2020, adhering to the principles of "reform, management, innovation, and development", the Company will focus on optimisation of the entire business value chain, as well as market expansion, risk prevention, and seizing opportunities so as to do our best to reduce the negative impact of the coronavirus outbreak and the slump of crude oil price, and strive to achieve healthy business performance. Due to the outbreak, the adjustment of the Company's production plan for 2020 is currently underway. We will confirm the production plan according to the market trends in the future.
Exploration and Production, under the low oil price circumstance, we will optimise projects implementation, enhance high-quality exploration, and reduce cost and expenditure to expand resource base and realize sustainable development. In crude oil development, more efforts will be made in promoting capacity building of Shunbei Oilfield, Tahe Oilfield, and the Oilfield at the western margin of the Junggar Basin, and we will strengthen profit-oriented development of mature fields. In natural gas development, we will accelerate capacity construction of key projects, and promote integration of production, supply, storage and marketing so as to maximize the value of the business chain. Preliminarily, we plan to keep a stable production volume of curde oil and realise a positive growth for nature gas.
Refining, under low oil price circumstance, with the coordination of production and sales, domestic and overseas markets, the Company will optimize utilization rate and production scheduling, and promote efficient operation of its refining business chain. We will optimize the allocation of crude oil, coordinate crude oil supply chain, and reduce procurement costs. More efforts will be made in restructuring product slate, increasing products tailoring for market demand and changes. We will accelerate low-sulfur bunker fuel projects and the revamping of storage and transportation facilities to rapidly expand market share.
Marketing and Distribution, balancing volume and profit, and leveraging the advantages of integration of production and sales, the Company will continuously improve the quality of its operations. We will vigorously carry out targeted and differentiated marketing to continuously improve our services with focus on customer need. We will accelerate the construction of smart service stations, coordinate the layout of natural gas and hydrogen stations, and consolidate and expand network advantages. More efforts will be made in boosting innovation in non-fuel business models, vigorously developing proprietary brands, creating differentiated competitive advantages, so as to drive rapid growth in non-fuel business.
Chemicals, the Company will focus on the "basic + high-end" development concept, speed up advanced capacitybuilding, continuously deepen structural adjustment, and improve our competitiveness and profitability. We will optimize facilities and product chain, and improve utilization rate and production scheduling based on market demand. Efforts will be made in adjusting feedstock slate to improve product yield and reduce cost. We will coordinate production, marketing, research and application, and redouble our efforts in developing new products and increase the production of high value-added products. Meanwhile, we will improve targeted marketing and services, enhance e-commerce platforms, actively explore overseas markets and continuously expand market share.
Research and Development, we will continue to implement the innovation-driven development strategy, deepen mechanism reform, accelerate key technology breakthrough, improve innovation capabilities to strive for quality development. In oil and gas exploration and development, we will strive to make technology breakthrough in ultra-deep oil and gas, tight oil and gas, shale oil and gas, etc. In refining, we will accelerate the research of heavy oil processing, oil quality upgrading, and promote the application of technologies such as needle coke. In chemicals, we will continuously improve the package technologies of ethylene and aromatics, strengthen the research and development of photoelectric materials and degradable materials, and accelerate the industrialization of large-tow high-performance carbon fibers. At the same time, we will focus on advancing research on cutting-edge technologies and new areas to achieve future business development through technology innovation.
Capital Expenditures, preliminary capital expenditures for the year 2020 are budgeted at RMB 143.4 billion. We will dynamically optimise capital projects based on future market trends. Preliminarily, RMB 61.1 billion will be invested in exploration and production with focuses on the production capacity building of Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas field, and the construction of natural gas pipelines and storage facilities as well as overseas oil and gas projects. The refining segment will account for RMB 22.4 billion, mainly on the construction and commissioning of the Zhongke project, and structural adjustment projects of Zhenhai, Tianjin, Maoming, Luoyang. RMB 22.0 billion is budgeted for marketing and distribution with emphasis on service stations, depots and storage facilities for refined oil products, pipelines and non-fuel business. The share for chemicals will be RMB 32.3 billion which will be used on the construction of Zhongke, Zhenhai and Gulei projects, ethylene revamping of Sinopec-SK and Sinopec-SABIC projects, Sinopec-SABIC polycarbonate project, Jiujiang aromatics project and Zhong An coal chemical project. The capital expenditure for corporate and others will be RMB 5.6 billion, mainly for R&D facilities and information technology projects.
Appendix: Key financial data and indicators
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE
Principal accounting data
Items | For twelve months | Changes over the same | |
2019 (RMB million) | 2018 (RMB million) | ||
Operating income | 2,966,193 | 2,891,179 | 2.6 |
Net profit attributable to equity shareholders | 57,591 | 63,089 | (8.7) |
Net profit attributable to equity shareholders after deducting extraordinary gain/loss items | 54,271 | 59,630 | (9.0) |
Net cash flows from operating activities | 153,420 | 175,868 | (12.8) |
At 31 December 2019 (RMB million) | At 31 December 2018 (RMB million) | Change from the | |
Total equity attributable to equity | 739,169 | 718,355 | 2.9 |
Total assets | 1,755,071 | 1,592,308 | 10.2 |
Principal financial indicators
Items | For twelve months | Changes over the same | |
2019 (RMB) | 2018 (RMB) | ||
Basic earnings per share | 0.476 | 0.521 | (8.7) |
Diluted earnings per share | 0.476 | 0.521 | (8.7) |
Basic earnings per share after deducting | 0.448 | 0.493 | (9.1) |
Weighted average return on net assets (%) | 7.90 | 8.67 | (0.77) percentage |
Weighted average return on net assets after | 7.45 | 8.20 | (0.75) percentage |
Net cash flow from operating activities per | 1.267 | 1.453 | (12.8) |
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS
Principal accounting data
Items | For twelve months | Changes over the same | |
2019 (RMB million) | 2018 (RMB million) | ||
Operating Profit | 86,198 | 82,264 | 4.8 |
Net profit attributable to owners of the | 57,465 | 61,618 | (6.7) |
Net cash generated from operating activities | 1.267 | 1.453 | (12.8) |
At 31 December 2019 (RMB million) | At 31 December 2018 (RMB million) | Change from the | |
Equity attributable to owners of the Company | 738,150 | 717,284 | 2.9 |
Total assets | 1,755,071 | 1,592,308 | 10.2 |
Principal financial indicators
Items | For twelve months | Changes over the same | |
2019 (RMB) | 2018 (RMB) | ||
Basic earnings per share | 0.475 | 0.509 | (6.7) |
Diluted earnings per share | 0.475 | 0.509 | (6.7) |
Return on capital employed (%) | 8.99 | 9.25 | (0.26) percentage |
The following table sets forth the operating revenues, operating expenses and operating profit / (loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between 2019 and 2018.
For twelve months | Changes | ||
2019 | 2018 | ||
(RMB million) | (%) | ||
Exploration and Production Segment | |||
Operating revenues | 210,712 | 200,191 | 5.3 |
Operating expenses | 201,428 | 210,298 | (4.2) |
Operating profit / (loss) | 9,284 | (10,107) | — |
Refining Segment | |||
Operating revenues | 1,224,156 | 1,263,407 | (3.1) |
Operating expenses | 1,193,524 | 1,208,580 | (1.2) |
Operating profit | 30,632 | 54,827 | (44.1) |
Marketing and Distribution Segment | |||
Operating revenues | 1,430,963 | 1,446,637 | (1.1) |
Operating expenses | 1,401,856 | 1,423,173 | (1.5) |
Operating profit | 29,107 | 23,464 | 24.0 |
Chemicals Segment | |||
Operating revenues | 495,234 | 546,733 | (9.4) |
Operating expenses | 478,083 | 519,726 | (8.0) |
Operating profit | 17,151 | 27,007 | (36.5) |
Corporate and others | |||
Operating revenues | 1,484,822 | 1,368,583 | 8.5 |
Operating expenses | 1,484,758 | 1,377,876 | 7.8 |
Operating profit / (loss) | 64 | (9,293) | — |
Elimination of inter-segment (loss) | (40) | (3,634) | — |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
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SOURCE China Petroleum & Chemical Corporation
BEIJING, March 25, 2020 /PRNewswire/ -- As the world battles the COVID-19 pandemic, Sinopec Corp (HKG: 0386), China's leading energy and chemical company, has shown support and solidarity to the international community by supplying 10,256 tonnes of much-needed bleaching powder to countries grappling with an outbreak. To date, Sinopec Jianghan Salt & Chemical Complex has shipped bleaching powder to more than ten affected countries, including Italy, France, Thailand, Australia, New Zealand and Vietnam.
With the global pandemic spreading, demand for disinfectants—an essential product for epidemic prevention and control—is skyrocketing. Based in Hubei, China, Sinopec Jianghan Salt & Chemical Complex has overcome vast hurdles to help protect the world during these unprecedented times. Despite having a limited workforce, logistical restrictions and pressing domestic needs, Sinopec Jianghan Salt & Chemical Complex is working tirelessly to rise above these challenges and meet global demand for disinfectant.
The largest manufacturer of bleaching powder in Asia, Sinopec Jianghan Salt & Chemical Complex holds over 30% of the global market share and has a strong reputation in the market. Every year, the company exports products to over 80 countries and regions, including Europe, America, Australia and Russia. With ten bleaching powder production plants, annual production capacity of Sinopec Jianghan Salt & Chemical Complex is designed to reach up to 54,000 tonnes. Sinopec Jianghan Salt & Chemical Complex's plants are currently operating at full capacity, and the company has adjusted operations and production loads to meet the sharp increase in demand. At present, bleaching powder products from Sinopec Jianghan Salt & Chemical Complex have a best-in-class production yield rate of 100% and a premium production quality rate of 90%.
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies. In addition, Sinopec is engaged in the research, development and application of energy technologies. With a corporate mission of "fueling beautiful life," Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation and green and low-carbon growth to build a world-leading energy and chemical company.
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SOURCE Sinopec
KUWAIT CITY, Kuwait, Dec. 16, 2019 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) has completed the central unit of the Al-Zour refinery project in Kuwait. As the largest refinery in the Middle East, it will make Kuwait the biggest clean oil-producing country in the region with an annual processing capacity of 3,150 tons.
Launched in October 2015, the Al-Zour refinery project is the latest achievement of Sino-Kuwait cooperation, which also holds the record of being the world's largest one-time construction to date. Nearly 500 companies from 50 countries and regions participated in the project. The world-class refinery is being built with an investment of USD1.39 billion and produces mainly gasoline, diesel and kerosene to Euro 5 emission standards.
As one of the general contractors of Al-Zour refinery project, Sinopec Luoyang Engineering adopted an intelligent collaborative work system and utilised virtual designs to coordinate with global partners and share data to complete the 15 process production plants including the hydrodesulfurization plant.
An emphasis on locally-sourced materials has created a boost to the manufacturing industries of Kuwait as well as the development of the local economy and providing a large number of employment opportunities.
Usama Ali, project manager of Al-Zour refinery, spoke highly of Sinopec as a "trustworthy, professional and hardworking partner" and hopes Sinopec will continue to participate in further projects in Kuwait.
The Al-Zour refinery will provide high-quality clean fuel with high added-value for the global market, it's also a new milestone for Kuwait as the country pushes forward national economic transitions.
With 60 years of history, Sinopec Luoyang Engineering has completed 4,300 mid-to large-scale construction projects and has acquired 1,061 patents at home and abroad.
Adhering to independent innovation, Sinopec owns a series of world-leading technologies and solutions in areas of oil refining, ethylene, aromatic hydrocarbon and more, as well as the capabilities to build 10-million-tonnage refineries, million-tonnage ethylene units and million-tonnage aromatic hydrocarbon units.
In 2016, Sinopec's first overseas refinery project, the Yanbu Aramco Sinopec Refining Company in Saudi Arabia, officially began operations. A year later, Sinopec completed the upgrading of Kazakhstan's Atyrau Refinery.
For more information, please visit: http://www.sinopecgroup.com/group/en/
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies. In addition, Sinopec is engaged in the research, development and application of energy technologies.
With a corporate mission of "fueling beautiful life," Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation and green and low-carbon growth to build a world-leading energy and chemical company.
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SOURCE Sinopec
SHANGHAI, Nov. 20, 2019 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028;NYSE: SNP) and French company Air Liquide opened two hydrogen stations, West Shanghai Petrol and Hydrogen Fueling Station and Anzhi Gas and Hydrogen Fueling Station, on November 18 in Shanghai. They are the first stations in China to provide combined commercial gas and hydrogen fuel services.
The two hydrogen stations are part of the first project jointly signed by Sinopec and Air Liquide, which will lead Shanghai on the path to becoming a hydrogen energy harbor and further support the development of the 'Hydrogen Corridor'.
The two stations are secondary gas and hydrogen fueling stations; each is equipped with two gasoline tanks, two diesel tanks and four hydrogen tanks, as well as two 12-pump fuel dispensers, two four-pump 35MPa hydrogen dispensers and a reserved 70MPa hydrogen dispenser. The pipelines of the two stations were constructed per the upgraded 70MPa standard to meet the needs of both 35MPa and 70MPa car owners.
Equipped with the world's most advanced technologies, the two combined gas and hydrogen fueling stations have a daily capacity of 1,000 kilograms to serve public transportation, logistics and passenger vehicles. Each station can fuel 100 cars a day. A full tank can be provided in 4-6 minutes per vehicle, providing a driving distance of 300 to 400 kilometers (186.41-248.55 miles).
Unlike previous petrol and hydrogen fueling stations that separate gas and hydrogen, the new project combines them. Sinopec achieved this by recycling the former gas station to create a secondary energy complex. The benefits of this innovative new concept of construction results it better land conservation, reduced waste and lower safety risks.
According to the midterm goal of "Shanghai Fuel Cell Vehicle Development Plan," the city will complete 50 hydrogen stations by 2025. To achieve this, Sinopec Shanghai Petrochemical will utilize the land from 580 existing gas stations to fast-track the introduction of a new generation national network of stations covering urban roads and highways, for a reduced carbon future.
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies. In addition, Sinopec is engaged in the research, development and application of energy technologies.
With a corporate mission of 'fueling beautiful life', Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation and green and low-carbon growth to build a world-leading energy and chemical company.
View original content to download multimedia:http://www.prnewswire.com/news-releases/sinopec-and-air-liquide-inaugurate-two-hydrogen-stations-in-shanghai-300961916.html
SOURCE Sinopec
SHANGHAI, Oct. 31, 2019 /PRNewswire/ -- Sinopec "Donghai" asphalt obtained approval from the Shanghai Futures Exchange for registration on Oct. 31, marking the debut of China's biggest asphalt producer and Sinopec's first brand registered at the exchange.
Sinopec "Donghai" asphalt, with an annual production volume of 8 million tons, controls a domestic market share of 29% and exports to 17 countries across five continents. Thanks to its excellent performance in terms of stability and resistance to abrasion and ageing, "Donghai" asphalt is the material of choice for several of China's most significant projects, including Beijing's Chang'an Avenue, Beijing Daxing International Airport, Xiong'an New Area, the Winter Olympic Games and the Shanghai F1 International Circuit.
Asphalt is a commodity futures product linked closely to the international crude market. Since their debut in 2013, asphalt futures contracts have become actively-traded instruments in China's futures market. As an important risk-hedging tool, asphalt futures can help companies in the petrochemical industry or those engaged in road construction to mitigate risks by locking in cost or profit.
In step with the plan of further opening China's energy sector, Sinopec worked together with the Shanghai Futures Exchange to create the "Donghai" asphalt Futures Product.
In step with the central government's planned further opening of its energy sector, Sinopec worked together with the Shanghai Futures Exchange to create the "Donghai" asphalt Fututures Product.
Sinopec Refinery Sales Co, a Sinopec unit, in preparation for the registration of the brand, worked in coordination with five Sinopec asphalt producing subsidiaries to create a futures product of high-stability.
The move can bring future asphalt prices closer to spot prices, enabling clients to buy asphalt using either market, thus, speeding up circulation of the commodity, and improving risk-hedging and price-discovery functions of asphalt futures.
Through partnerships with overseas engineering projects and long-term contracts, Sinopec "Donghai" asphalt exports to 17 countries, including a dozen "Belt & Road" nations such as Vietnam, Malaysia, Indonesia, Pakistan and Zambia. In the first nine months of 2019, "Donghai" asphalt exported 500,000 tons of "Donghai" asphalt.
The debut of Sinopec "Donghai" asphalt represents Sinopec's endeavour to actively participate in the three major petrochemical futures products - crude oil, fuel oil and asphalt and provides a foundation for new futures products in liquefied gas, gasoline and diesel.
About Sinopec Corp.
Sinopec Corp. (HKEX: 386; SSE: 600028;NYSE: SNP) is one of the largest R&D based, integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies.
With a corporate mission of 'fueling beautiful life', Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation and green and low-carbon growth to build a world-leading energy and chemical company.
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SOURCE Sinopec
BEIJING, March 24, 2019 /PRNewswire/ -- China Petroleum & Chemical Corporation ( "Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2018.
Financial Highlights
Business Highlights
In 2018, the global economic recovery was slow while China maintained an overall stable economic performance with its GDP up by 6.6%. International oil prices fluctuated in a wide range. Domestic demand for natural gas grew rapidly. Domestic oil products market saw fierce competition because of oversupply, and demand for chemicals increased steadily. Meanwhile, China's environmental regulations became more stringent. The Company actively coped with market changes by focusing on reform, management, innovation and development. We coordinated all aspects of our work by pressing ahead measures for optimised operation, market expansion, cost reduction, risk control, reform promotion, and management enforcement, which helped the company achieve solid operating results.
Mr. Dai Houliang, Chairman of Sinopec Corp. said, "In 2018, we adhered to the general principle of making progress while maintaining stability, following the new development philosophy and requirements for high-quality development, we fully exerted the advantages of the integrated value chain. We made great efforts in optimizing operation, expanding market, reducing costs, controlling risks, deepening reforms, reinforcing management, and launching the Talent Empowering Enterprise Scheme. We successfully dealt with various risks and challenges, made progress in many aspects and pushed forward the sustainable development in an all-round way. We constantly improved the Company's development quality by optimising production and operation, actively expanding markets, accelerating structural adjustment, and further promoting scientific and technological innovations, which strengthened our competitiveness. In 2019, the Company will adhere to the overall strategy of pursuing progress while maintaining stability, fulfill our due responsibilities and make more efforts in implementing our plans so as to lay solid foundation for sustainable development. Meticulous planning will be made to secure stable operation and to boost operational quality and profitability. Besides, we will strive to implement reform and to improve motivation and incentive mechanisms. Foundation will be consolidated, risk control will be strengthened, and operation and management standards will be further enhanced. In addition, we will strongly promote technological innovations to drive our future growth. We advance structural reform by building a solid resource foundation for sustainable development, strengthening the overall competitiveness of the value chain of refining and marketing businesses, and enhancing our capability in high-end production and value creation of chemical business. With an aim to build the Company into a green enterprise with high quality, we will make vigorous efforts in pollution prevention and environmental protection to raise the level of our green development. Moreover, we will explore and capture strategic emerging business opportunities through financial investments, thereby cultivating new growth drivers."
Business Review
Exploration and Production
In 2018, we pressed ahead with high efficiency exploration and profit-oriented development. Measures were taken to accelerate the formation of an integrated value chain of natural gas business including production, supply, storage and marketing and continuously reduce cost and expenditure on all fronts. Tangible results were achieved in maintaining oil production, increasing gas output and reducing cost. We reinforced preliminary exploration in new areas and strengthened integrated detailed evaluation in mature fields, which led to new discoveries in Tarim, Yin'e and Sichuan basins. The Company's newly added proved reserves in China reached 458.2 million barrels (64.54 million tonnes) of oil equivalent, with crude oil reserve replacement ratio at 131.7%. In crude oil development, we made a full-fledged push to build profitable production capacity, deepen the structural adjustment of mature fields, reduce natural decline rate and ensure steady production. In natural gas development, we constantly pushed forward capacity building in Hangjinqi of Neimongol, the eastern slope of west Sichuan Depression and Weirong shale gas fields. We optimised production and distribution and promoted a coordinated growth along the value chain. The Company's production of oil and gas reached 451.46 million barrels (63.50 million tonnes) of oil equivalent, with domestic crude production registering 248.93 million barrels (35.06 million tonnes) and natural gas production totaling 977.32 billion cubic feet (27.7 billion cubic meter), up by 7.1%.
In 2018, the operating revenues of this segment was RMB 200.2 billion, representing an increase of 27.1% over 2017. This was mainly attributed to the rise of realised price of crude oil and natural gas as well as the expansion of natural gas and LNG business. By capturing the recovery of crude oil price, the segment reinforced efficient exploration, enhanced profitable production of refined reservoir, promoted stable production of crude oil, and rapidly expanded production of natural gas. Operating loss of the exploration and production segment was RMB 10.1 billion, representing a significant reduced loss of RMB 35.8 billion as compared with 2017.
Exploration and Production: Summary of Operations
Twelve-month periods ended 31 | Changes | ||
2018 | 2017 | % | |
Oil and gas production (mmboe) | 451.46 | 448.79 | 0.6 |
Crude oil production (mmbbls) | 288.51 | 293.66 | (1.8) |
China | 248.93 | 248.88 | 0.02 |
Overseas | 39.58 | 44.78 | (11.6) |
Natural gas production (bcf) | 977.32 | 912.50 | 7.1 |
Refining
In 2018, with market-oriented approach, we optimised product mix to produce more gasoline, jet fuel and chemical feedstock, production of high value-added products further increased, and diesel-to-gasoline ratio declined to 1.06. We proactively promoted structural adjustment and quality upgrading projects, the GB VI standard upgrading is completed successfully. We moderately increased the export of oil products to keep a relatively high utilisation rate. Optimisation of resources allocation were carried out to reduce crude oil cost. In 2018, the Company processed 244 million tonnes of crude oil, up by 2.3% and produced 155 million tonnes of refined oil products, up by 2.7%, with gasoline up by 7.2% and kerosene up by 7.6% year on year.
In 2018, the operating revenues of this segment was RMB 1,263.4 billion, representing an increase of 24.9% over 2017. This was mainly attributed to the increase in products prices, as well as the Company's efforts in expanding the refinery throughput and increasing the sales volumes. Operating profit of the segment totaled RMB 54.8 billion.
Refining: Summary of Operations
For the twelve months | Changes | ||
2018 | 2017 | (%) | |
Refinery throughput (million tonnes) | 244.01 | 238.50 | 2.3 |
Gasoline, diesel and kerosene production (million tonnes) | 154.79 | 150.67 | 2.7 |
Gasoline (million tonnes) | 61.16 | 57.03 | 7.2 |
Diesel (million tonnes) | 64.72 | 66.76 | (3.1) |
Kerosene (million tonnes) | 28.91 | 26.88 | 7.6 |
Light chemical feedstock production (million tonnes) | 38.52 | 38.60 | (0.2) |
Light yield (%) | 76.00 | 75.85 | 0.15 percentage |
Refining yield (%) | 94.93 | 94.88 | 0.05 percentage |
Note: Includes 100% of the production of domestic joint ventures.
Marketing and Distribution
In 2018, confronted with fierce market competition, the Company aimed to achieve a balance between sales volume and profits. We brought our advantages of integrated business and distribution network into full play, and increased marketing efforts, thus, achieved sustained growth in both total domestic sales volume and retail scale. We adopted a flexible and targeted marketing strategy and upgraded our distribution network to further strengthen our existing advantages. We proactively promoted vehicle natural gas business and accelerated the construction and operation of CNG stations. Total sales volume of refined oil products for the year was 198 million tonnes, of which domestic sales volume accounted for 180 million tonnes. Meanwhile, we strengthened development and marketing of self-owned brands to speed up the growth of non-fuel business.
In 2018, the operating revenues of this segment was RMB 1,446.6 billion, representing an increase of 18.2% over 2017. Operating profit of this segment was RMB 23.5 billion.
Marketing and Distribution: Summary of Operations
For twelve months | Changes | ||
2018 | 2017 | % | |
Total sales volume of refined oil products | 198.32 | 198.75 | (0.2) |
Total domestic sales volume of refined oil | 180.24 | 177.76 | 1.4 |
Retail (million tonnes) | 121.64 | 121.56 | 0.1 |
Direct sales and Wholesale | 58.61 | 56.20 | 4.3 |
Annualised average throughput per station | 3,979 | 3,969 | 0.3 |
As of 31 | As of 31 | Changes | |
Total number of Sinopec-branded service | 30,661 | 30,633 | 0.1 |
Company-operated | 30,655 | 30,627 | 0.1 |
Chemicals
In 2018, the Company adhered to the development philosophy of "basic plus high-end" to enhance effective supply. We persistently fine-tuned chemical feedstock mix to lower cost. We optimised products slate and increased high-end products output. The ratio of new and specialty products in synthetic resin reached 64.3%, the ratio of high-value-added products in synthetic rubber amounted to 26.3%, and our differential ratio of synthetic fibre reached 90.4%. By optimising utilisation rate and production plan based on market demand, we improved the operation of chemical units. To reinforce the capacity structural adjustment, we actively promoted several key projects. Annual ethylene production was 11.51 million tonnes. The Company also intensified its efforts to enhance the efficiency of the integration among production, marketing, R&D, and application as well as promoted targeted marketing and servicing to further expand our business, with total chemical sales volume increased by 10.3% to 86.6 million tonnes, hitting a record high.
In 2018, the operating revenue of the chemicals segment was RMB 546.7 billion, representing an increase of 24.9% as compared with that of 2017, This was mainly due to increase in sales volume and price of chemical products as a result of the Company's effort in actively expanding sales volume and market share, optimising product mix. In 2018, the segment seized the opportunities of high chemical margin, continuously optimised the structures of feedstock, product and facilities, strengthened the coordination among research, development, production and marketing, intensified allocation of resources, improved targeted marketing strategy, and achieved remarkable profits with increased sales volume of petrochemicals. In 2018, the operating profit of this segment was RMB 27.0 billion.
Major Chemical Products: Summary of Operations Unit of production: 1,000 tonne | |||
For twelve months | Changes | ||
2018 | 2017 | (%) | |
Ethylene | 11,512 | 11,610 | (0.8) |
Synthetic resin | 15,923 | 15,938 | (0.1) |
Synthetic fiber rubber | 896 | 848 | 5.7 |
Synthetic fiber monomer and polymer | 9,343 | 9,439 | (1.0) |
Synthetic fiber | 1,218 | 1,220 | (0.2) |
Note: Includes 100% of the production of domestic joint ventures.
Research and Development
In 2018, with the emphasis on reinforcing innovation-driven strategy, the Company accomplished notable results in R&D, deepened reform of R&D mechanism and pushed ahead with efforts in key and frontier technologies. In upstream segment, further advancement in evaluation technology of buried hill bedrock and deep carbonate reservoir and fracturing technology of deep shale gas field brought the breakthroughs in the exploration of Guaizihu Depression in Yin'e Basin and new series of strata in Maokou Formation in Yuanba area as well as the discovery of Weirong deep shale gas field. The pilot test of 185℃ high temperature measurement while drilling was successfully conducted in the ultra-deep well in Shunbei. In refining, we realised the industrialization of technologies including new sulfuric acid alkylation and hydro-isomerisation dewaxing for producing high grade base oil. In chemicals, the industrial demonstration unit of HPPO achieved stable operation and new products like PE film turned into commercial production. In addition, SOR, the framework type code of a novel structured zeolite synthesized by us, has been approved by the Structure Commission of International Zeolite Association, making us the first Chinese company to achieve a breakthrough in this area. In 2018, the Company had 6,074 patent applications at home and abroad, among which 4,434 were granted. The Company also won one second prize of National Technology Invention and three second prizes of National Sci-tech Progress, four silver and four excellent prizes of National Patent Awards.
Health, Safety, Security and Environment
In 2018, the Company constantly promoted the HSSE management. We implemented the concept of "Comprehensive Health" by integrating the management of occupational, physical and mental health of our employees. The Company took stringent measures to control risks and supervise the safety and operations of contractors. We also strengthened safety measures at all levels, removing potential hazards and enhancing our emergency response capability, all achieved sound and reliable production and operation. Public security management capability was strengthened with improvement in risk evaluation, monitoring and early warning and emergency response mechanism. The green and low-carbon growth strategy was further carried out by promoting clean energy and green development, such as steadily pushing forward our Green Enterprise Campaign and Efficiency Doubling Plan. We accomplished all emission reduction targets by pursuing clean production and preventing pollutions.
Capital Expenditures
In 2018, focusing on quality and profitability of investment, the Company continuously optimised its capital projects, with total capital expenditures of RMB 118 billion. Capital expenditure for the exploration and production segment was RMB 42.2 billion, mainly for Fuling and Weirong shale gas development projects, Hangjinqi natural gas development project, Shengli and Northwest crude oil development projects, phase I of Xinjiang gas pipeline, phase I of Erdos-Anping-Cangzhou gas pipeline, Wen 23 and Jintan gas storages, as well as overseas projects. Capital expenditure for the refining segment was RMB 27.9 billion, mainly for Zhongke Refining and Petrochemical project, Zhenhai, Tianjin, Maoming and Luoyang refineries, the gasoline and diesel GB VI quality upgrading projects and the construction of Rizhao-Puyang-Luoyang crude pipeline. Capital expenditure for the marketing and distribution segment was RMB 21.4 billion, mainly for construction of oil products depots, pipelines, service stations, non-fuel business and the renovation of underground oil tanks to remove potential safety hazards. Capital expenditure for the chemicals segment was RMB 19.6 billion, mainly for ethylene projects in Zhongke, Zhenhai and Gulei, Phase II of Hainan high-efficiency and environmentally-friendly aromatics project, Sinopec-SABIC Polycarbonate project and Zhongan coal chemical project. Capital expenditure for corporate and others was RMB 6.9 billion, mainly for setting up the joint-venture of Sinopec Capital Company with Sinopec Group, R&D facilities and information technology projects.
Business Prospects
Looking ahead to 2019, the international economy is expected to show a slower growth rate in the midst of a complex and uncertain global political and economic environment. Meanwhile, continued growth of China's economy will further drive up domestic demand for high-end refined oil products and petrochemicals. As the adjustment of China's energy mix deepens, demand for natural gas will continue to grow at a rapid pace. Considering uncertainties of supply capacity of major oil producing countries, global oil demand and geopolitical issues, etc., the international oil price is expected to fluctuate within a wide range.
Operations In 2019, adhering to the general principle of seeking progress while maintaining stability, the new development philosophy and the operating guidelines of "specialised development, market-based operation, international-isation and overall coordination". The following activities will be prioritized during the year.
Exploration and Production, by fully implementing the action plan of redoubling efforts in oil and gas exploration and production, we will advance high-efficiency exploration, continuously increase proved reserves and expand resource base. In crude oil development, more efforts will be made in promoting the capacity building of the Tahe Oilfield, making technological breakthrough for undeveloped oil-bearing reservoirs, improving refined reservoir characterization of mature fields in order to increase reserve development rate and recovery rate. In natural gas development, we will accelerate the capacity construction of key projects, optimise the system of natural gas production, supply, storage and marketing as well as the market layout so as to foster coordinated development of the whole business value chain. In 2019, we plan to produce 288 million barrels (40.48 million tonnes) of crude oil, among which overseas production will be 39 million barrels (5.41 million tonnes), and 1,019.1 billion cubic feet (28.9 billion cubic meter) of natural gas.
Refining, with integrated planning, we will optimise crude oil allocation, reinforce inventory management, and push forward the high-efficiency operation of the refining value chain. Maintenance will be arranged according to market changes so as to achieve maximum overall profit. We will further optimise product mix by lowering diesel-to-gasoline ratio and increasing the production of gasoline, jet fuel and light chemical feedstock.The quality upgrading plan for new spec marine fuel oil will be implemented to raise capacity utilisation ratio. Marketing mechanisms will be improved to push up the total trading volume of other refined oil products. In 2019, we plan to process 246 million tonnes of crude oil and produce 157 million tonnes of refined oil products.
Marketing and Distribution, insisting the marketing strategy of balancing profits and sales volume, we will continue to optimise resources allocation, expand market, and increase operation profit. We will carry out targeted and differential marketing with customers at its core so as to constantly improve service quality. The marketing and distribution network will be further improved to amplify the existing advantages. We will accelerate the construction and operation of natural gas stations and expand natural gas market for automobiles. Substantial progress will be made in hydrogen refueling stations and charging and battery swap stations. We will explore the new business mode of "Internet + service stations + convenience stores + comprehensive services" to advance the development and marketing of self-owned brands and to advance the growth of nonfuel business. In 2019, we plan to sell 182 million tonnes of refined oil products in the domestic market.
Chemicals, we will further adjust feedstock mix, product slate and facilities structure to constantly strengthen competitiveness. The continuous feedstock mix optimisation will diversify feedstock procurement channels and reduce costs. More efforts will be made in adjusting product slate and coordinating production, marketing, research and application to raise the proportion of high-end products. We will enhance the dynamic optimisation of facilities and product chain, and improve the utilisation and production scheduling based on market demand. We will strengthen market analysis to actively expand market, thus increasing market shares. Meanwhile, advantages cultivation and production capacity building will be accelerated to produce high-end products and create more value. In 2019, we plan to produce 12.12 million tonnes of ethylene.
Research and Development, we will continue to fully implement the innovation-driven development strategy, deepen the reform of scientific and technological systems, accelerate key technological breakthroughs, push ahead with frontier research on leading technologies, and step up the commercial application of technological achievement so as to strive for sustainable development in an all-round way. With the emphasis on constantly advancing oil and gas exploration and production technologies, we will focus on achieving breakthroughs in oil and gas exploration and production and resource evaluation technologies. In refining, more efforts will be made in making progress in refined oil product quality upgrading technologies, enhancing the technology development of self-owned refined oil product, and reinforcing the research on refinery total process optimisation technology. In chemicals, we will continue to improve the technological system for chemical products and strengthen development of high-value-added new materials. Technological breakthrough in safety and environmental protection will be stepped up. At the same time, prospective and basic research will be carried out on such leading and new areas including new energy, new materials, artificial intelligence and low-carbon so as to boost innovation.
Capital Expenditures, in 2019, we will further focus on investment quality and profitability through constantly optimizing capital projects. Capital expenditures for the year are budgeted at RMB 136.3 billion. Of which RMB 59.6 billion will be invested in exploration and production with focuses on the production capacity building of Shengli Oilfield, Northwest Oilfield, Leikou Slope in western Sichuan, Fuling Shale Gas Filed and Weirong Shale Gas Field, and the construction of natural gas pipelines and storage facilities as well as overseas oil and gas projects. The capital expenditure for refining will amount to RMB 27.9 billion which will be spent on the construction of Zhongke and Zhenhai Projects, and the refining structural adjustment projects of Tianjin, Maoming, Luoyang, Wuhan, Beihai and Yangzi. RMB 21.8 billion are budgeted for marketing and distribution with emphases on the construction of depots and storage facilities for refined oil products, pipelines and service stations, non-fuel business development, as well as renovation of underground oil storage tanks. The share for chemicals will be RMB 23.3 billion which will be used on Zhongke, Zhenhai, Gulei, Hainan and Wuhan, coal chemical projects of Bijie and Zhongan, and comprehensive resource utilisation and structural adjustment projects of Yangzi and SSTPC. The capital expenditure for corporate and others will reach RMB 3.7 billion, mainly for R&D facilities and information technology projects.
Appendix: Key financial data and indicators
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE
Principal accounting data
Items | For twelve months | Changes over the same | |
2018 (RMB million) | 2017 (RMB million) | ||
Operating income | 2,891,179 | 2,360,193 | 22.5 |
Net profit attributable to equity | 63,089 | 51,119 | 23.4 |
Net profit attributable to equity after deducting extraordinary gain/loss | 59,630 | 45,582 | 30.8 |
Net cash flows from operating activities | 175,868 | 190,935 | (7.9) |
At 31 December 2018 (RMB million) | At 31 December 2017 (RMB million) | Change from the | |
Total equity attributable to equity | 718,355 | 727,244 | (1.2) |
Total assets | 1,592,308 | 1,595,504 | (0.2) |
Principal financial indicators
Items | For twelve months | Changes over the same | |
2018 (RMB) | 2017 (RMB) | ||
Basic earnings per share | 0.521 | 0.422 | 23.4 |
Diluted earnings per share | 0.521 | 0.422 | 23.4 |
Basic earnings per share after deducting | 0.493 | 0.376 | 31.1 |
Weighted average return on net assets (%) | 8.67 | 7.14 | 1.53 percentage |
Weighted average return on net assets | 8.20 | 6.37 | 1.83 percentage |
Net cash flow from operating activities per | 1.453 | 1.577 | (7.9) |
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS
Principal accounting data
Items | For twelve months | Changes over the same | |
2018 (RMB million) | 2017 (RMB million) | ||
Operating Profit | 82,264 | 71,470 | 15.1 |
Net profit attributable to owners of the | 61,618 | 51,244 | 20.2 |
Net cash generated from operating | 1.453 | 1.577 | (7.9) |
At 31 December 2018 (RMB million) | At 31 December 2017 (RMB million) | Change from the | |
Equity attributable to owners of the | 717,284 | 726,120 | (1.2) |
Total assets | 1,592,308 | 1,595,504 | (0.2) |
Principal financial indicators
Items | For twelve months | Changes over the same | |
2018 (RMB) | 2017 (RMB) | ||
Basic earnings per share | 0.509 | 0.423 | 20.3 |
Diluted earnings per share | 0.509 | 0.423 | 20.3 |
Return on capital employed (%) | 9.25 | 8.26 | 0.99 percentage |
The following table sets forth the operating revenues, operating expenses and operating profit / (loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between 2018 and 2017.
For twelve months | Changes | ||
2018 | 2017 | ||
(RMB million) | (%) | ||
Exploration and Production Segment | |||
Operating revenues | 200,191 | 157,505 | 27.1 |
Operating expenses | 210,298 | 203,449 | 3.4 |
Operating (loss) | (10,107) | (45,944) | - |
Refining Segment | |||
Operating revenues | 1,263,407 | 1,011,853 | 24.9 |
Operating expenses | 1,208,580 | 946,846 | 27.6 |
Operating profit | 54,827 | 65,007 | (15.7) |
Marketing and Distribution Segment | |||
Operating revenues | 1,446,637 | 1,224,197 | 18.2 |
Operating expenses | 1,423,173 | 1,192,628 | 19.3 |
Operating profit | 23,464 | 31,569 | (25.7) |
Chemicals Segment | |||
Operating revenues | 546,733 | 437,743 | 24.9 |
Operating expenses | 519,726 | 410,766 | 26.5 |
Operating profit | 27,007 | 26,977 | 0.1 |
Corporate and others | |||
Operating revenues | 1,368,583 | 974,850 | 40.4 |
Operating expenses | 1,377,876 | 979,334 | 40.7 |
Operating (loss) | (9,293) | (4,484) | - |
Elimination of inter-segment (loss) | (3,634) | (1,655) | - |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
View original content:http://www.prnewswire.com/news-releases/sinopecs-net-profit-up-over-20-to-rmb-61-6-billion-in-2018--300817440.html
SOURCE China Petroleum & Chemical Corporation
BEIJING, Aug. 26, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company")(HKEX: 386; SSE: 600028; NYSE: SNP) today announced its interim results for the six months ended 30 June 2018.
Financial Highlights:
Business Highlights:
In the first half of 2018, global economy recorded slow recovery, while China economy maintained a stable performance and secured progress in its economic development with gross domestic product (GDP) grew by 6.8%. While the domestic demand for oil products maintained steady growth, the market witnessed strong competition because of abundant supply. According to the statistics of NDRC, domestic consumption of refined oil products increased by 5.7% compared with the first half of 2017, among which gasoline consumption increased by 4.6%, consumption growth for kerosene and diesel was 10.9% and 5.6%, respectively. Domestic demand for natural gas recorded higher growth rate. Domestic consumption of major chemicals maintained significant growth with consumption of ethylene continued to report robust growth, and gross margin for chemical products remained at a high level.
Mr. Dai Houliang, Chairman of Sinopec, said, "During the first half of 2018, we carried out businesses in a practical manner and fully realised the strengths of our integrated value chain. We secured stable and higher-quality growth of the Company along with improved performance. Looking into the second half of 2018, we expect China's economy to maintain steady growth and the demand for refined oil products and petrochemicals to increase steadily with more robust demand for high-end products. Along with the adjustments of China's energy structure, demand for natural gas will maintain robust growth. The Company will continue to focus on growth pattern upgrading, insist on specialized development, market-oriented operation, optimised global presence and integrated planning to enhance efficiency. This will strengthen our core competence and extending our value chain to middle-end and high-end, aiming to deliver better operating results and give back to our country, shareholders, employees, customers and the society."
Business Review
Exploration and Production
In the first half of 2018, capturing the recovery of crude oil price, the Company promoted efficient exploration and effective production to increase proved reserves, reduced costs and expenses and achieved good results. Our continuing efforts in exploration paid off with new oil and gas discoveries in Sichuan Basin, Tarim Basin, and Yin'e Basin. In development, we adopted a profit-oriented approach in resumption of crude oil production.) We also accelerated natural gas development by enhancing production-supply-storage-marketing system building to realise synergy along the entire value chain. Production in the first half of 2018 was 224.59 million barrels of oil equivalent, of which domestic crude production was 123.68 million barrels, overseas crude production was 19.95 million barrels, and total gas production was 476.2 billion cubic feet, increased by 5.3% compared to the same period of last year.
In the first half of 2018, operating revenues of the segment were RMB 87.9 billion, representing an increase of 18.6% year on year. This was mainly the increase of crude oil and natural gas prices as well as expansion of scale of natural gas and LNG business over the same period of 2017. In the first half of 2018, the oil and gas lifting cost was RMB 768 per tonne, representing an increase of 0.1% year on year. In the first half of 2018, the operating loss of the segment was RMB 0.4 billion, representing a decrease of RMB 17.9 billion compared with the same period of last year. This was mainly because the segment seised the opportunity of crude oil price recovery to promote efficient exploration and effective production and reduce costs and expenses and achieved good results.
Exploration and Production: Summary of Operations |
Six-month period ended 30 June |
Changes | ||
2018 |
2017 |
(%) | |
Oil and gas production (mmboe) |
224.59 |
221.38 |
1.4 |
Crude oil production (mmbbls) |
143.63 |
145.98 |
(1.6) |
China |
123.68 |
123.16 |
0.4 |
Overseas |
19.95 |
22.82 |
(12.6) |
Natural gas production (bcf) |
476.20 |
452.12 |
5.3 |
Refining
In the first half of 2018, with the market-oriented approach, we optimised product mix to produce more gasoline and jet fuel, and the diesel-to-gasoline ratio further decreased. We actively promoted the GB VI refined oil products quality upgrading. Export of refined oil products was increased to help maintain high utilisation of refining facilities. Crude oil sourcing and allocation optimisation continued to lower our feedstock cost. We comprehensively optimised our production plans to ensure safe and reliable operations. The advantage of centralised marketing was given full play, and profitability of LPG, asphalt, and sulphur maintained at a high level. In the first half of 2018, we processed 121 million tonnes of crude oil, and produced 76.37 million tonnes of refined oil products, with production of gasoline and kerosene up by 5.7% and 9.4% respectively from levels in the first half of 2017.
In the first half of 2018, operating revenues of the segment were RMB 593.3 billion, representing an increase of 21.5% year on year. This was mainly attributable to increased prices of refined oil products, and the high utilisation rate maintained by the Company by proactively confronting with the over-supplied market.
In the first half of 2018, the refining margin was RMB 544.1 per tonne, up by RMB 70.4 per tonne, representing an increase of 14.9% year on year, which was mainly because the Segment put great efforts to reduce crude oil purchasing cost and enhanced product mix by optimising operation schedule according to market demand. The Segment constantly optimised product mix, increased export of refined oil products, optimised crude oil sourcing to lower feedstock cost and achieved good result. In the first half of 2018, the segment realised an operating profit of RMB 38.9 billion, up by RMB 9.5 billion, representing an increase of 32.5% year on year.
Refining: Summary of Operations |
Unit: Million Tonnes | ||
Six-month period ended 30 June |
Changes | ||
2018 |
2017 |
(%) | |
Refinery throughput |
120.72 |
117.79 |
2.5 |
Gasoline, diesel and kerosene production |
76.37 |
74.11 |
3.0 |
Gasoline |
30.04 |
28.41 |
5.7 |
Diesel |
32.09 |
32.67 |
(1.8) |
Kerosene |
14.25 |
13.03 |
9.4 |
Light chemical feedstock production |
19.34 |
18.94 |
2.1 |
Note: Includes 100% of production of domestic joint ventures. |
Marketing and Distribution
In the first half of 2018, confronted with fierce competition, the Company brought our advantages in distribution network into full play, and achieved good operational results. We coordinated internal and external resources, intensified efforts to explore more markets, expanded retail scale, and achieved sustained growth in total domestic sales volume. We proactively promoted precision marketing and differentiated marketing, and improved our marketing network to reinforce existing advantages. The total sales volume of refined oil products in the first half of 2018 was 96.48 million tonnes, of which domestic sales accounted for 88.45 million tonnes, up by 1.4% year on year. We strengthened development of key convenience store goods and proprietary brand to promote a rapid growth of non-fuel business.
In the first half of 2018, the operating revenues of the segment were RMB 668.3 billion, increased by 10.3% year on year. This was mainly due to the increasing refined oil products prices and gasoline sales volume. In the first half of 2018, the segment brought our advantages in integrated business and distribution network into full play, enhanced efforts to optimise internal and external resources, actively responded to market rebalancing, expanded markets, balanced profits and volume and achieved good result. In the first half of 2018, the segment's operating profit was RMB 17.2 billion, up by RMB 0.6 billion, representing an increase of 3.7% year on year.
Marketing and Distribution: Summary of Operations |
Unit: Million Tonnes | ||
Six-month period ended 30 June |
Changes | ||
2018 |
2017 |
(%) | |
Total sales volume of refined oil products |
96.48 |
98.55 |
(2.1) |
Total domestic sales volume of refined oil |
88.45 |
87.22 |
1.4 |
Retail |
59.28 |
58.68 |
1.0 |
Direct sales and Wholesale |
29.16 |
28.54 |
2.2 |
Annualised average throughput per station |
3,870 |
3,832 |
1.0 |
As of 30 June |
As of 31 |
Change from | |
Total number of Sinopec-branded service stations |
30,645 |
30,633 |
0.04 |
Number of Company-operated stations |
30,639 |
30,627 |
0.04 |
Number of convenience stores |
26,424 |
25,775 |
2.5 |
Chemicals
In the first half of 2018, we constantly fine-tuned chemical feedstock mix to further lower costs, optimised product mix by enhancing the dynamic optimisation of facilities and product chains to provide more products needed by the market. We strengthened the integration among production, marketing, R&D, and application, and intensified efforts on R&D, production and sales of high value-added products, with the ratio of specialty products of synthetic resin reached 64.0% and our differential ratio of synthetic fibre reached 90.3%. Ethylene production for the first half of 2018 was 5.786 million tonnes, up by 3.2% year on year. We coordinated internal and external resources, implemented precision marketing and further expanded the market, with total chemical sales volume increased by 14.1% from the corresponding period in 2017 to 42.56 million tonnes.
In the first half of 2018, operating revenues of the chemicals segment were RMB 256.3 billion, representing an increase of 23.0% year on year, which was mainly due to increased petrochemical products sales volume and prices year on year as the Company seised market opportunities to expand market, promote sales and optimise structure. In the first half of 2018, the segment seized the opportunity of good margin, continued the 'basic and high-end' chemical business development concept, strengthened the integration among production, sales, R&D and application, further promoted optimisation of feedstock, product and facilities to lower feedstock cost, increase high value added products' proportion and achieved good result. The segment's operating profit in the first half of 2018 was RMB 15.8 billion, up by RMB 3.6 billion, representing an increase of 29.7% year on year.
Major Chemical Products: Summary of Operations |
Unit: 1,000 tonnes | ||
Six-month period ended 30 June |
Changes | ||
2018 |
2017 |
(%) | |
Ethylene |
5,786 |
5,609 |
3.2 |
Synthetic resin |
8,068 |
7,802 |
3.4 |
Synthetic fiber monomer and polymer |
4,601 |
4,659 |
(1.2) |
Synthetic fiber |
603 |
616 |
(2.1) |
Synthetic rubber |
405 |
412 |
(1.7) |
Note: Includes 100% of production of domestic joint ventures. |
Safety Management and Environmental Protection
The Company prioritised safe production and intensified safety supervision. In the first half of this year, we promote the construction of tiered risk control and operation hazard identification, prevention and rectification system. We advanced safety control of contractors and on-site operation, enhanced process safety of chemicals business, security and staff healthy management, and further consolidated the foundation of safe production at operational level. Above all, we achieved safe production and operations.
The Company actively implemented its green and low-carbon strategy and launched "Green Enterprise Campaign". We effectively carried out pollution prevention and control and constantly pushed forward energy efficiency improvement. We also accelerated carbon asset management and made great progress in energy and environment work.
Capital Expenditures
Focusing on quality and return on investment, the Company continuously optimised its investment projects. In the first half of 2018, total capital expenditures were RMB 23.687 billion. Capital expenditures for the exploration and production segment were RMB 10.762 billion, mainly for oil and gas capacity building, Wen 23 Gas Storage Project, Erdos-Anping-Cangzhou Gas Pipeline Project, the first phase of Xinjiang Coal Gas Pipeline Project as well as overseas projects. Capital expenditures for the refining segment were RMB 4.61 billion, mainly for the Zhongke integrated refining and chemical project, product mix optimisation of Zhenhai, Maoming and Tianjin, and GB VI gasoline and diesel quality upgrading projects. Capital expenditures for the marketing and distribution segment were RMB 5.373 billion, mainly for constructing refined oil products depots, pipelines and service stations and revamping of underground oil tanks, as well as other safety and environmental protection hazard removal projects. Capital expenditures for the chemicals segment were RMB 2.635 billion, mainly for integrated refining and chemical projects of Zhongke and ulei, high-efficiency and environmental friendly aromatics project in Hainan and Zhong'an United Coal Chemical project. Capital expenditures for corporate and others were RMB 307 million, mainly for R&D facilities and information technology application projects.
Business Prospects
Looking into the second half of 2018, we expect China's economy to maintain steady growth and the demand for refined oil products and petrochemicals to increase steadily with more robust demand for high-end products. Along with the adjustments of China's energy structure, demand for natural gas will maintain robust growth. For the second half of 2018, the uncertainty of international crude oil prices will increase due to trade frictions and geopolitical tensions.
Confronted with the present situation, the Company will integrate reform, management, innovation and development, to fully improve operational performances, expand markets, reduce costs, prevent risks and realise structural adjustments. Our focuses are on the following aspects:
For Exploration and Production, we will continue to advance high-efficiency exploration, profitable production and cost reduction. In crude oil development, we will accelerate profitable development of new oilfields and resumed production of suspended wells, deepen the structural adjustments of mature fields, and increase yields of profitable crude oil. In natural gas development, we will advance key projects for capacity construction, enhance the efficiency and quality of developed gas fields, as well as promote synergy of production, supply, storage and marketing to push forward the development of natural gas. In the second half of 2018, we plan to produce 146 million barrels of crude oil, of which domestic production will account for 125 million barrels and overseas production will account for 21 million barrels. We plan to produce 497.8 billion cubic feet of natural gas during the period.
For Refining, with efficiency-oriented approach, we will optimise our production plans based on market demand to consolidate our competitive advantages in refining business. We will continue to adjust our product mix by further lowering the diesel-to-gasoline ratio and increasing the production of gasoline, jet fuel and light chemical feedstock. We will complete GB VI refined oil products upgrading project as scheduled. We will fully optimise operations and ensure safe and stable production, and we plan to process 121 million tonnes of crude oil in the second half of the year.
For Marketing and Distribution, we will intensify our marketing strategy of balancing profit and volume by optimising resources allocation and operational efficiency. We will make efforts to expand retail scale through implementing precision marketing as well as differentiated marketing. We will further improve our marketing network to reinforce existing advantages and enhance the ability of exporting refined oil products. We will push forward the construction and operation of natural gas stations and expand natural gas market for automobiles. We will take the advantage of "Internet +" marketing strategy and accelerate the development and marketing of proprietary brand and products to advance the growth of non-fuel business. In the second half, we plan to sell 90.50 million tonnes of refined oil products in the domestic market in the second half of 2018.
For Chemicals, we will focus on the "basic and high-end" development concept to adjust our feedstock structure and lower cost. We will fine-tune our product slate, improve the coordination among mechanism combining production, marketing, research and application, advance new product development, promotion and application, and deliver more high-end products. We will put more emphasis on the dynamic optimisation of facilities and product chains and improving the utilisation and production scheduling based on market demands. Meanwhile, we will promote the precision marketing and services, improve customer services and provide total solutions and value-added services. We plan to produce 5.734 million tonnes of ethylene in the second half of 2018.
In the second half of the year, the Company will continue to focus on growth pattern upgrading, insist on specialized development, market-oriented operation, optimised global presence and integrated planning to enhance efficiency and deliver superior operating results.
Appendix: Key financial data and indicators | |||
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE | |||
Principal accounting data | |||
Items |
Six-month periods ended 30 June |
Changes over the same | |
2018 RMB million |
2017 RMB million | ||
Operating income |
1,300,252 |
1,165,837 |
11.5 |
Net profit attributable to equity |
41,600 |
27,092 |
53.6 |
Net profit attributable to equity after deducting extraordinary |
39,791 |
26,099 |
52.5 |
Net cash flows from operating |
71,620 |
60,847 |
17.7 |
At 30 June 2018 RMB million |
At 31 December 2017 RMB million |
Change from | |
Total equity attributable to equity |
721,193 |
727,244 |
(0.8) |
Total assets |
1,617,304 |
1,595,504 |
1.4 |
Principal financial indicators | |||
Items |
Six-month periods ended 30 June |
Changes over the same | |
2018 RMB |
2017 RMB | ||
Basic earnings per share |
0.344 |
0.224 |
53.6 |
Diluted earnings per share |
0.344 |
0.224 |
53.6 |
Basic earnings per share after deducting |
0.329 |
0.216 |
52.5 |
Weighted average return on net assets (%) |
5.74 |
3.79 |
1.95 percentage |
Weighted average return on net assets after |
5.49 |
3.65 |
1.84 percentage |
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS | |||
Principal accounting data | |||
Items |
Six-month periods ended 30 June |
Changes over the same | |
2018 RMB million |
2017 RMB million | ||
Operating Profit |
61,576 |
39,309 |
56.6 |
Profit attributable to owners of the |
42,386 |
27,915 |
51.8 |
Net cash generated from operating |
71,620 |
60,847 |
17.7 |
At 30 June 2018 RMB million |
At 31 December 2017 RMB million |
Changes from the | |
Total equity attributable to owners of the |
720,113 |
726,120 |
(0.8) |
Total assets |
1,617,304 |
1,595,504 |
1.4 |
Principal financial indicators | |||
Items |
Six-month periods ended 30 June |
Changes over the same | |
2018 RMB |
2017 RMB | ||
Basic earnings per share |
0.350 |
0.231 |
51.8 |
Diluted earnings per share |
0.350 |
0.231 |
51.8 |
Return on capital employed (%) |
6.48 |
4.39 |
2.09 percentage |
The following table sets forth the operating revenues, operating expenses and operating profit/(loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between the first half of 2018 and the first half of 2017.
Six-month periods ended 30 June |
Changes | ||
2018 |
2017 | ||
RMB million |
(%) | ||
Exploration and Production Segment |
|||
Operating revenues |
87,924 |
74,109 |
18.6 |
Operating expenses |
88,336 |
92,443 |
(4.4) |
Operating (loss)/profit |
(412) |
(18,334) |
- |
Add: Share of profits/(losses) from associates and joint ventures |
1,087 |
875 |
24.2 |
Add: Investment income/(loss) |
2 |
48 |
(95.8) |
EBIT |
677 |
(17,411) |
- |
Refining Segment |
|||
Operating revenues |
593,327 |
488,172 |
21.5 |
Operating expenses |
554,395 |
458,779 |
20.8 |
Operating profit |
38,932 |
29,393 |
32.5 |
Add: Share of profits from associates and joint ventures |
487 |
409 |
19.1 |
Add: Investment income/(loss) |
12 |
10 |
20.0 |
EBIT |
39,431 |
29,812 |
32.3 |
Marketing and Distribution Segment |
|||
Operating revenues |
668,325 |
605,960 |
10.3 |
Operating expenses |
651,139 |
589,394 |
10.5 |
Operating profit |
17,186 |
16,566 |
3.7 |
Add: Share of profits from associates and joint ventures |
1,125 |
1,416 |
(20.6) |
Add: Investment income |
11 |
48 |
(77.1) |
EBIT |
18,322 |
18,030 |
1.6 |
Chemicals Segment |
|||
Operating revenues |
256,268 |
208,429 |
23.0 |
Operating expenses |
240,504 |
196,272 |
22.5 |
Operating profit |
15,764 |
12,157 |
29.7 |
Add: Share of profits from associates and joint ventures |
3,137 |
4,242 |
(26.0) |
Add: Investment income |
13 |
115 |
(88.7) |
EBIT |
18,914 |
16,514 |
14.5 |
Corporate and others |
|||
Operating revenues |
585,443 |
488,015 |
20.0 |
Operating expenses |
589,897 |
487,276 |
21.1 |
Operating profit |
(4,454) |
739 |
- |
Add: Share of profits from associates and joint ventures |
782 |
709 |
10.3 |
Add: Investment income |
802 |
65 |
1,133.8 |
EBIT |
(2,870) |
1,513 |
(289.7) |
Elimination of inter-segment profit/(loss) |
(5,440) |
(1,212) |
- |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec Corp. sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: |
Media Inquiries: | ||
Beijing |
|||
Tel: (86 10) 5996 0028 |
Tel: (86 10) 5996 0028 | ||
Fax: (86 10) 5996 0386 |
Fax: (8610) 5996 0386 | ||
Email: ir@sinopec.com |
Email: ir@sinopec.com | ||
Hong Kong |
|||
Tel: (852) 2824 2638 |
Tel: (852) 2522 1838 | ||
Fax: (852) 2824 3669 |
Fax: (852) 2521 9955 | ||
Email: ir@sinopechk.com |
Email: sinopec@prchina.com.hk |
View original content:http://www.prnewswire.com/news-releases/sinopecs-profit-for-1h2018-up-52-with-dividend-payout-surges-60-300702434.html
SOURCE China Petroleum & Chemical Corporation
BEIJING, April 26, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company")(HKEX: 00386; SSE: 600028; NYSE: SNP) today announced its unaudited results for the three months ended 31 March 2018.
Financial Highlights:
Business Review:
In the first quarter of 2018, the global economy recovered gradually, and Chinese economy maintained a momentum of steady and sound growth with gross domestic product (GDP) up by 6.8%. International crude oil price fluctuated at a narrow range and increased slightly. The Company pursued supply-side structural reform as main task, focused on improving the quality and efficiency of our operations, upheld the policy of Reform, Management, Innovation and Development, and strengthened efforts on cost reduction, market expansion, structural adjustment, reform promotion, management reinforcement, which helped deliver solid operating results.
Exploration and Production:
The Company constantly strengthened measures on high-efficiency exploration activities and adopted profit-oriented approaches on development. In exploration, we made new progress in northeast Sichuan area in Sichuan Basin and in Shunbei area in Xinjiang Tarim Basin, strengthened efforts in E&P in deep, normal pressure and new strata of shale gas formations, and found new discoveries in Weirong shale gas field. In oil and gas development, we accelerated crude oil reserve evaluation, promoted capacity building in new areas of crude oil and natural gas; constantly advanced progressive exploration and reservoir appraisal of natural gas. In the first quarter, the oil and gas production of the Company was 111.33 million barrels of oil equivalent, among which domestic crude oil increased by 1.3% while natural gas increased by 0.6%, compared with the same period of last year. Exploration and Production Segment had an operating loss of RMB 0.318 billion, realising a significant reduction in loss by RMB 5.446 billion compared with the same period of last year.
Exploration and Production |
Unit |
For three-month period ended 31 March |
Changes | |
2018 |
2017 |
(%) | ||
Oil and gas production1 |
million boe |
111.33 |
111.93 |
(0.5) |
Crude oil production |
million barrels |
71.35 |
72.08 |
(1.0) |
China |
million barrels |
61.43 |
60.67 |
1.3 |
Overseas |
million barrels |
9.92 |
11.41 |
(13.1) |
Natural gas production |
billion cubic feet |
239.83 |
238.35 |
0.6 |
Realised crude oil price |
USD/barrel |
59.8 |
49.1 |
21.8 |
Realised natural gas price |
USD/thousand cubic feet |
6.28 |
5.00 |
25.6 |
Note 1 Conversion: for domestic production of crude oil, 1 tonne = 7.10 barrels; for overseas production of crude oil, 1 tonne=7.21 barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet. |
Refining:
The Company comprehensively optimised the operation of production plans. We proactively adjusted product structure, improved production volume of gasoline, jet-fuel and other high value-added products, the ratio of diesel to gasoline decreased to 1.06. At the same time, we actively implemented refined oil product quality upgrading to ensure the supply of high quality refined oil products, optimised crude oil procurement and resource distribution to realise cost control. In the first quarter, refinery throughput grew by 2.1% and refined oil products production grew by 2.6%, among which gasoline up by 4.7%, kerosene up by 8.6% and diesel down by 1.7% over the same period of last year. Refining Segment realised an operating profit of RMB 19.007 billion.
Refining2 |
Unit |
For three-month period |
Changes (%) | |
2018 |
2017 | |||
Refinery throughput |
million tonnes |
60.16 |
58.95 |
2.1 |
Gasoline, diesel and kerosene production |
million tonnes |
37.98 |
37.03 |
2.6 |
Gasoline |
million tonnes |
14.98 |
14.31 |
4.7 |
Diesel |
million tonnes |
15.93 |
16.21 |
(1.7) |
Kerosene |
million tonnes |
7.07 |
6.51 |
8.6 |
Light chemical feedstock |
million tonnes |
9.94 |
9.97 |
(0.3) |
Light product yield |
% |
76.22 |
76.30 |
(0.08) Percentage points |
Refining yield |
% |
95.23 |
95.29 |
(0.06) Percentage points |
Note 2 Including 100% production of domestic joint ventures. |
Marketing and Distribution:
Faced with intensified competition, the Company took an active part in coping with marketing challenges. We gave full play of our advantages in integrated operation and marketing network by coordinating internal and external resources, optimising resource distribution, and improving capability of service, and realised increase in both total domestic sales and retail volume of refined oil products. We optimised the distribution network, improved environment protection measures for our service stations, and revamped the storage and transportation facilities of refined oil products to improve the marketing network. We further promoted integration of fuel business and non-fuel business, optimised the system for self-owned brand products and accelerated the construction of integrated service stations. Our non-fuel business kept increasing rapidly. In the first quarter, total sales volume of refined oil products was 47.21 million tonnes, among which domestic sales volume recorded 43.35 million tonnes with an increase of 3.4% over the same period of last year. The operating revenues of non-fuel business reached RMB 8.726 billion, up by 21.8% compared with the same period of last year. The Marketing and Distribution Segment realised an operating profit of RMB 8.925 billion.
Marketing and Distribution |
Unit |
For three-month period |
Changes (%) | |
2018 |
2017 | |||
Total sales volume of refined oil products |
million tonnes |
47.21 |
47.44 |
(0.5) |
Total domestic sales of refined oil products |
million tonnes |
43.35 |
41.94 |
3.4 |
Retail |
million tonnes |
29.46 |
28.63 |
2.9 |
Direct sales & Distribution |
million tonnes |
13.89 |
13.31 |
4.4 |
Total number of Sinopec-branded service stations3 |
stations |
30,648 |
30,633 |
- |
Company-operated |
stations |
30,642 |
30,627 |
- |
Throughput per station4 |
tonnes |
3,846 |
3,725 |
3.2 |
Note 3 The number of service stations in 2017 was the number as of 31 December 2017. Note 4 Throughput per station was annualised. |
Chemicals:
The Company further optimised product slate, produced customer-oriented and high value-added products. We optimised feedstock mix to reduce cost. We intensified efforts on R&D, production and promotion of high-value-added new products, with the differential ratio of synthetic fiber reaching 89.8% and the ratio of new synthetic resin products and performance compound reaching 63.0%. We put more effort into marketing development and promoted fine chemical products marketing and targeted marketing service. In the first quarter, ethylene production reached 2.995 million tonnes, up by 1.8% and chemical sales volume was 20.458 million tonnes, up by 10.0% over the same period of last year. The Chemicals Segment realised an operating profit of RMB 8.452 billion.
Chemicals5 |
Unit |
For three-month period |
Changes (%) | ||
2018 |
2017 | ||||
Ethylene |
thousand tonnes |
2,995 |
2,941 |
1.8 | |
Synthetic resin |
thousand tonnes |
4,117 |
4,074 |
1.1 | |
Synthetic rubber |
thousand tonnes |
199 |
227 |
(12.3) | |
Monomers and polymers for synthetic fiber |
thousand tonnes |
2,246 |
2,424 |
(7.3) | |
Synthetic fiber |
thousand tonnes |
296 |
308 |
(3.9) | |
Note 5 Including 100% production of domestic joint ventures. | |||||
Capital Expenditure:
In the first quarter, the total capital expenditure was RMB 6.414 billion. Capital expenditures for Exploration and Production Segment were RMB 1.597 billion, mainly for capacity construction of shale gas, Hangjinqi natural gas and Shunbei crude oil, as well as for construction of Wen 23 Gas Storage Project, phaseⅡpressure boosting project of Sichuan-to-East China Pipeline, phaseⅠproject of Xinqi Pipeline and overseas oil and gas projects. Capital expenditures for Refining Segment were RMB 1.269 billion, mainly for Zhongke integrated refining and chemical project, structure adjustment in Zhenhai, Maoming and Tianjin subsidiaries, and GB VI standard gasoline and diesel quality upgrading. Capital expenditures for Marketing and Distribution Segment were RMB 2.273 billion, mainly for revamping service stations, construction for pipelines from Zhanjiang to Beihai and Jingmen to Xiangyang etc., as well as building depots and storage and rectifying safety and environmental hazards. Capital expenditures for Chemicals Segment were RMB 1.158 billion, mainly for Zhongke integrated refining and chemical project, the high-efficiency and environmental- friendly aromatics project (phaseⅡ) in Hainan refinery, and other resources integrated utilisation projects as well as product structure adjustment projects. Capital expenditures for Corporate and Others were RMB 117 million, mainly for R&D facilities and information technology application projects.
Appendix
Principal financial data and indicators
Principal financial data and indicators prepared in accordance with China Accounting Standards for Business Enterprises (ASBE)
Units: RMB million
Items |
As of 31 March 2018 |
As of 31 December 2017 |
Changes from the end of the preceding year to the end of the reporting period (%) |
Total assets |
1,572,527 |
1,595,504 |
(1.4) |
Total equity attributable to equity shareholders of the Company |
745,799 |
727,244 |
2.6 |
Items |
Three months |
Changes over the same period of the preceding year (%) | |
2018 |
2017 | ||
Net cash flow from operating activities |
12,052 |
13,276 |
(9.2) |
Operating income |
621,251 |
582,185 |
6.7 |
Net profit attributable to equity shareholders of the Company |
18,770 |
16,633 |
12.8 |
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses |
17,982 |
16,540 |
8.7 |
Weighted average return on net assets (%) |
2.55 |
2.31 |
0.24 percentage points |
Basic earnings per share (RMB) |
0.155 |
0.137 |
13.1 |
Diluted earnings per share (RMB) |
0.155 |
0.137 |
13.1 |
Extraordinary gain/loss items |
During the reporting period |
(gains)/losses(RMB million) | |
Net loss on disposal of non-current assets |
18 |
Donations |
2 |
Government grants |
(692) |
Gains on holding and disposal of various investments |
(261) |
Other extraordinary income and expenses, net |
(181) |
Subtotal |
(1,114) |
Tax effect |
278 |
Total |
(836) |
Equity shareholders of the Company |
(788) |
Minority interests |
(48) |
2.1.2 Principal financial data and indicators prepared in accordance with International Financial Reporting Standards (IFRS)
Units: RMB million
Items |
As of 31 March 2018 |
As of 31 December 2017 |
Changes from the end of the preceding year to the end of the reporting period (%) |
Total assets |
1,572,527 |
1,595,504 |
(1.4) |
Total equity attributable to owners of the Company |
744,688 |
726,120 |
2.6 |
Items |
Three months |
Changes over the same period of the preceding year (%) | |
2018 |
2017 | ||
Net cash generated from operating activities |
12,052 |
13,276 |
(9.2) |
Operating profit |
29,218 |
25,435 |
14.9 |
Net profit attributable to owners of the Company |
19,306 |
17,199 |
12.3 |
Basic earnings per share (RMB) |
0.159 |
0.142 |
12.0 |
Diluted earnings per share (RMB) |
0.159 |
0.142 |
12.0 |
Return on net assets (%) |
2.59 |
2.36 |
0.23 percentage points |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec Corp. sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: Media Inquiries:
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View original content:http://www.prnewswire.com/news-releases/sinopec-corp-posts-net-profit-of-rmb-19-3-billion-for-q1-2018--300637225.html
SOURCE China Petroleum & Chemical Corporation
BEIJING, March 25, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2017.
Financial Highlights
Business Highlights
In 2017, global economy recovered gradually, while China maintained stable and favourable economic growth with gross domestic product (GDP) up by 6.9%. As the Company made major decisions, the Board of Directors focused on steady and firm improvement, continued to focus on supply-side structural reform and stepped up efforts to enhance the Company's efficiency, profitability and corporate governance with an emphasis on delivering returns to shareholders.
Mr. Dai Houliang, Vice Chairman & President of Sinopec Corp. said, "In 2017, The Company actively addressed market changes through a focus on the improvement of assets quality and profitability, as well as operation upgrades. We pressed ahead with measures for specialised business development, market-oriented operation and overall coordination. With a focused supply-side structural reform, we coordinated all aspects of our work and delivered solid operating results. In 2018, the global economy will continue to recover. While China's economic development model will shift from high-speed growth to high- quality development, domestic demand for oil and chemical products will remain robust. In view of the new requirements in the new era, the Company will adhere to an underlying principle of progressing at a steady pace and under a new development model that makes quality and efficiency our top priorities. We will continue to implement our set strategies and enhance our corporate governance with China's characteristics. We will also strive diligently to improve our production and operational standards, reinforce our reform, innovation and management to enable sustainable development."
Business Review
Exploration and Production
In 2017, faced with low oil prices, we constantly strengthened measures to increase proved reserves and rein in development costs, which helped achieving better results. We gave priority to high-efficiency exploration activities and made new discoveries in the Xinjiang Tahe Basin and the Sichuan Basin. The Company's newly added proved reserve reached 462.73 million barrels of oil equivalent, with crude oil reserve replacement ratio reaching 116.0%. In crude oil development, we constantly adopted a profit-oriented approach, deepened structural adjustment, focused on cost control, reduced natural decline rate and ensured steady production. In natural gas development, we actively pushed forward capacity building in Hangjinqi of Nei Mongol and Dongpo of west Sichuan, and completed 10 bcm(billion cubic meter) per year shale gas capacity building in Fuling. The Company's production of oil and gas was 448.79 million barrels of oil equivalent, with domestic crude production down by 3.2% from the previous year and natural gas production up by 19.1%.
In 2017, the operating revenues of this segment were RMB 157.5 billion, representing an increase of 35.9% over 2016. This was mainly attributed to the rise of realised price of crude oil and natural gas as well as expansion of LNG business. The operating loss of the exploration and production segment were RMB 45.9 billion, representing an expanded loss by RMB 9.3 billion as compared with 2016. By deducting the non-operating income from capital injection of Sichuan-to-East China Pipeline Co. in 2016, the Company realized a significant reduction in loss by RMB 11.3 billion in 2017.
In 2017, the oil and gas lifting cost was RMB 788.3 per tonne, representing a year on year increase of 0.3%.
Exploration and Production: Summary of Operations |
|||
Twelve-month periods ended 31 December |
Changes | ||
2017 |
2016 |
% | |
Oil and gas production (mmboe) |
448.79 |
431.29 |
4.1 |
Crude oil production (mmbbls) |
293.66 |
303.51 |
(3.2) |
China |
248.88 |
253.15 |
(1.7) |
Overseas |
44.78 |
50.36 |
(11.1) |
Natural gas production (bcf) |
912.50 |
766.12 |
19.1 |
Refining
In 2017, with the market-oriented approach, we optimised product mix to produce more gasoline and jet fuel, and the production volume of high-value-added products have been further improved, with the diesel-to-gasoline ratio further declined to 1.17. The Company actively promoted refined oil products quality upgrading, the GB V standard diesel quality upgrading completed, and advanced the refined oil products quality upgrading of GB VI standard. We adapted to market changes by took full advantages of our integrated business, and moderately increased export volume of refined oil products. We comprehensively optimised our production plans to ensure safe and reliable operations. The advantages of centralised marketing took full play, and profitability of LPG, asphalt and other products were further improved. In 2017, the Company processed 239 million tonnes of crude, up by 1.3% from the previous year, and produced 151 million tonnes of refined oil products, with gasoline up by 1.2% and kerosene up by 5.5% from the previous year.
In 2017, the operating revenues of this segment were RMB 1011.9 billion, representing an increase of 18.2% over 2016. This was mainly attributed to the increase in products prices. In 2017, the operating profit of the segment totaled RMB 65.0 billion, representing an increase of RMB 8.7 billion or 15.5% as compared with 2016.
In 2017, refining gross margin was RMB 510.7 per tonne, representing an increase of RMB 38.8 per tonne compared with 2016. This is mainly due to the increased proportion of high value added products, the promotion of quality upgrading of refined oil products, enlarged total refinery throughput by increasing the export volume, and further improved margins for LPG, asphalt and other refined oil products by our centralized marketing advantages brought fully into play. In 2017, the unit refining cash operating cost was RMB 175.2 per tonne, an increase of RMB 9.5 per tonne over 2016, mainly because of increased operating expenses resulting from newly operated facilities related to quality upgrading of refined oil products as well as safety enhancement and environment protection.
Refining: Summary of Operations |
|||
For the twelve months |
Changes | ||
2017 |
2016 |
(%) | |
Refinery throughput (million tonnes) |
238.50 |
235.53 |
1.3 |
Gasoline, diesel and kerosene production (million tonnes) |
150.67 |
149.17 |
1.0 |
Gasoline (million tonnes) |
57.03 |
56.36 |
1.2 |
Diesel (million tonnes) |
66.76 |
67.34 |
(0.9) |
Kerosene (million tonnes) |
26.88 |
25.47 |
5.5 |
Light chemical feedstock production (million tonnes) |
38.60 |
38.54 |
0.2 |
Light yield (%) |
75.85 |
76.33 |
(0.48) percentage points |
Refining yield (%) |
94.88 |
94.70 |
0.18 percentage points |
Note: Includes 100% of the production of domestic joint ventures. |
Marketing and Distribution
In 2017, confronted with stronger competition, the Company brought our advantages in integrated business and distribution network into full play, optimised internal and external resources, intensified market efforts and achieved sustained growth in both total sales volume and retail scale. We innovated operational models and optimised layout of service stations, and expedited revamping of storage and transportation facilities of refined oil products to further improve our distribution network. In addition, we proactively promote and cultivate vehicle natural gas business. In 2017, the total sales volume of oil products was 199 million tonnes, of which domestic sales accounted for 178 million tonnes, up by 2.9% year on year. We strengthened self-owned brand development and marketing, and non-fuel business maintained its rapid growth with increased scale and profits.
In 2017, the operating revenues of this segment were RMB 1,224.2 billion, representing an increase of 16.3% over 2016. In 2017, the operating profit of this segment was RMB 31.6 billion, representing a decrease of 1.8% compared with 2016. Among which, the operating revenues of non- fuel business was RMB 27.6 billion, representing an increase of RMB 6.2 billion compared with 2016; the profit of non-fuel business was RMB 2.2 billion, representing an increase of RMB 0.7 billion compared with 2016.
Marketing and Distribution: Summary of Operations |
|||
For twelve months |
Changes | ||
2017 |
2016 |
% | |
Total sales volume of refined oil products (million tonnes) |
198.75 |
194.84 |
2.0 |
Total domestic sales volume of refined oil products (million tonnes) |
177.76 |
172.70 |
2.9 |
Retail (million tonnes) |
121.56 |
120.14 |
1.2 |
Direct sales and Wholesale |
56.20 |
52.56 |
6.9 |
Annualised average throughput per station (tonne/station) |
3,969 |
3,926 |
1.1 |
As of 31 December 2017 |
As of 31 December 2016 |
Changes | |
Total number of Sinopec-branded service stations |
30,633 |
30,603 |
0.1 |
Company-operated |
30,627 |
30,597 |
0.1 |
Chemicals
In 2017, the Company continued the "basic and high-end" chemical business development concept to promote effective supply. We fine-tuned chemical feedstock mix to lower costs, optimised product mix and increased high-value-added products production based on the customer demand. We optimised production and operation based on market conditions and intensified dynamic modelling and monitoring of profit to increase profitability. Ethylene output was 11.61 million tonnes, up by 5.0% from the previous year. The Company intensified its efforts to enhance research and development, production, marketing and sales of new high-value-added products. Our differential ratio of synthetic fibre reached 89.0% and the specialty and new products as a percentage of synthetic resin reached 63%. By fully exerting our network advantage, implementing precision marketing and further expanding the market, our full- year chemical sales volume increased by 12.2% from the previous year to 78.5 million tonnes, marking a historic record.
In 2017, the operating revenues of the chemicals segment were RMB 437.7 billion, representing an increase of 30.6% as compared with that of 2016, This was mainly due to increase in sales volume and price of chemical products as compared with 2016. In 2017, the segment seized the opportunities of the improving market conditions, coordinated production with sales, intensified structural adjustment, increased the production of synthetic resin, rubber and some organic products which were more profitable, positively expanded the market, strictly controlled costs and expenses, thus, resulting in remarkable profits. In 2017, the operating profit of this segment was RMB 27.0 billion, representing an increase of RMB 6.4 billion or 30.8% as compared with 2016.
Major Chemical Products: Summary of Operations |
Unit of production: 1,000 tonne | ||
For twelve months |
Changes | ||
2017 |
2016 |
(%) | |
Ethylene |
11,610 |
11,059 |
5.0 |
Synthetic resin |
15,938 |
15,201 |
4.8 |
Synthetic fiber monomer and polymer |
848 |
857 |
(1.1) |
Synthetic fiber |
9,439 |
9,275 |
1.8 |
Synthetic rubber |
1,220 |
1,242 |
(1.8) |
Note: Includes 100% of the production of domestic joint ventures. |
Research and Development
In 2017, the Company pushed ahead with its innovation-driven strategy, deepened reform of R&D mechanism, and accomplished notable results driven by R&D progresses. In upstream business, further breakthroughs in geological evaluation and exploration technologies of deep carbonate and deep shale gas reservoirs underpinned the growing resources base of Shunbei oilfield and south Sichuan as well as discoveries of new formations in Sichuan Basin. We improved development technologies for Tahe fractured-vuggy carbonate reservoir, bringing down the natural decline rate. In refining, our demonstration unit of fluidised bed residue hydro-treating achieved long-cycle operation at its full capacity, and we completed the industrial test of super solid-acid C5 and C6 isomerisation technology. In chemicals, the syngas to ethylene glycol demonstration unit ran smoothly, and we accomplished commercial production of low-volatility polypropylene for automobile use and high-transparency & low-extraction polypropylene. Our on-line trading platform developed rapidly, as a result of the integration of IT application and industrialisation. In 2017, the Company filed 5,876 patent applications at home and abroad, 3,640 patents granted. The Company also won two first prises and one second prise in the National Scientific and Technological Progress Awards, two second prises in the National Technology and Innovation Awards, and eight excellent patent awards in China's Patent Award competition.
Health, Safety and the Environment
In 2017, the Company pressed ahead the formation of a long-term safe production scheme, strengthened safety measures at basic levels to control risks and remove potential hazards in all aspects. We promoted on-site safety supervision and management to continuously improve our safety management level. The Company actively implemented its green and low- carbon strategy to integrate energy conservation, emissions cutting and carbon reduction. We comprehensively strengthened environmental risk and air pollution control, steadily pushed forward our "Efficiency Doubling Plan", continuously consolidated our carbon asset management, and accomplished all emissions reduction targets. For more detailed information, please refer to our Communication on Progress for Sustainable Development.
Capital Expenditures
In 2017, focusing on quality and profitability of investment, the Company continuously optimised its investment projects. Total capital expenditures were RMB 99.384 billion. Capital expenditures for the exploration and production segment were RMB 31.344 billion, mainly for Fuling shale gas and Hangjinqi natural gas field development projects, Shengli and Northwest crude development projects, LNG terminals in Tianjin, Wen-23 gas storage and phase I of Xinjiang gas pipeline, as well as overseas projects. Capital expenditures for the refining segment were RMB 21.075 billion, mainly for Zhongke Refining and Petrochemical project, adjustments in the product mix of Zhenhai and Maoming refineries, and gasoline and diesel GB VI quality upgrading projects. Capital expenditures for the marketing and distribution segment were RMB 21.539 billion, mainly for construction of service stations and refined oil product pipelines, depots and storage facilities. Capital expenditures for the chemicals segment were RMB 23.028 billion, mainly for Zhongke Refining and Petrochemical project, phase II of Hainan high-efficiency and environment- friendly aromatics project, Gulei and Zhong'an projects, acquisition of interest in Shanghai SECCO, as well as projects regarding resource comprehensive utilisation and product structure adjustments. Capital expenditures for the corporate and others segment were RMB 2.398 billion, mainly for R&D facilities and information technology application projects.
Business Prospects
Looking ahead to 2018, we expect world economy continuing to recover, and China's economy would maintain steady growth. Meanwhile, the constant stream of reform measures by Chinese government to revitalise its substantial economy, the further development of the Belt and Road Initiative, the synergic development of Beijing-Tianjin-Hebei and the growth along Yangtze River Economic Zone will bring up demand for refined oil products and petrochemicals. Natural gas as clean energy will see rapid growth with structural adjustment of domestic energy mix. International oil price in 2018 is expected to maintain its stabilising momentum.
In 2018, the Company will persist with our objective of progressing at a steady pace to continually focus on growth stabilisation, adhere to the principle of quality first and profitability prioritised. The Company will deepen the supply- side structural reform as main direction to further implement the operation objectives of reform, management, innovation and development, to fully improve operational performance. We will undertake the following work during the year:
Exploration and Production: We will maintain high-efficiency exploration and profitable production activities to continually increase proved reserve and expand resource base. In oil development, we will enhance refined reservoir characterisation, deepen the structural adjustments of mature fields, control natural decline rate, lower operational cost and improve economic recovery rate. In natural gas development, we will keep advancing key projects for capacity construction, optimise production and marketing operations, and promote the coordinated development along the value chain. In 2018, we plan to produce 290 million barrels of crude oil, of which overseas production will account for 41 million barrels. We plan to produce 974.1 billion cubic feet of natural gas.
Refining: We will comprehensively optimise our production plans along with market changes to consolidating the competitive advantage of refining business. We will continue to adjust our product structure by further lowering the diesel-to-gasoline ratio and increasing the production of naphtha and jet fuel. The quality upgrading of GB VI standard refined oil products will complete on time with strengthened coordination. We will fine-tune crude oil procurement and resource allocation to reduce procurement cost. We will optimise our marketing mechanism to enlarge the trading volume of other refined oil products. In 2018, we plan to process 239 million tonnes of crude and produce 152 million tonnes of refined oil products.
Marketing and Distribution: We will intensify our marketing strategy of balancing profits and volume by optimising resources allocation and operational efficiency. We will put effort to expand markets and our business scale. We will further improve our marketing network to reinforce existing advantages. We will accelerate the construction of oil products export infrastructure and amplify the profitability of overseas oil products marketing. We will deepen the integration of fuel and non-fuel business, so to create a new mode of coordinating oil products retailing, non-fuel products marketing and third-party vendors cooperation, and thus step up the growth of non-fuel business. In 2018, we plan to sell 179 million tonnes of oil products in the domestic market.
Chemicals: We will further optimise feedstock mix and product slate. The constant feedstock optimisation would further lower feedstock costs. We will put more efforts on optimising product mix, enhancing the dynamic evaluation and monitoring of profitability of facilities and product chains, increasing more popular and profitable products production and advancing the R&D, production and sales of high-end chemicals. We will step up research on the industrial chain and optimise the rapid response mechanism combining production, marketing and research. Internal and external resources will be fully tapped to actively expand sales volume and market share. Meanwhile, refined marketing and tailor- made services will be adopted to provide our customers with full process solutions and value-added services. In 2018, we plan to produce 11.6 million tonnes of ethylene.
Research and Development: We will continue to deeply implement our strategy of development driven by innovation and reform of mechanisms for technological innovation. We will accelerating key technical breakthroughs, reinforcing research on leading technologies, and stepping up the commercial application of technological achievements to highlight the prominent role of technologies in supporting and leading. In key technical breakthroughs, focus will be given to new discoveries of oil and gas resources, low-cost development of oil and gas resources, high-efficiency conversion of heavy crude, refined oil products quality upgrading, cost reduction and efficiency enhancement of chemical business, new products development of high-value- added materials, energy conservation and environmental protection. In leading technologies, priorities lie in the basic and prospective research of ultra-deep and deepwater oil and gas exploration and production, molecular-level intelligent refining and new energies. In innovative development, the Company plans to establish a joint R&D centre for cutting-edge technologies to facilitate the innovation from basic research to commercialisation. Meanwhile, the integration of information technologies and industrialisation will carry on by further enhancing integration of information systems and the application of intelligent pipeline management systems.
Capital Expenditures: In 2018, we will devote attention to the quality and profitability of investments, and constantly optimise our investment projects. Capital expenditures for the year are budgeted at RMB 117 billion. The exploration and production segment will account for expenditures of RMB 48.5 billion, mainly for the shale gas development in southwest China, the natural gas project in north China and crude capacity building in northwest China, as well as natural gas pipelines and storage projects, and overseas oil and gas projects. The refining segment will account for RMB 28.8 billion, mainly for Zhongke Refining and Petrochemical Project, the structural adjustments of refining business in Zhenhai, Maoming and Tianjin subsidiaries, and the quality upgrading of GB VI standard gasoline and diesel. The marketing and distribution segment will account for RMB 18.5 billion, mainly for construction of depots and storage facilities, pipelines and service stations. The chemicals segment will account for RMB 17.7 billion, mainly for Zhongke Refining and Petrochemical Project, the high-efficiency and phase II of Hainan high-efficiency and environmental- friendly aromatics project, the integrated refining and petrochemical project in Gulei and the resource utilisation and structural adjustment projects in Zhenhai, Yangzi, Jinling, Maoming and Wuhan subsidiaries. The corporate and others segment will account for RMB 3.5 billion, mainly for R&D facilities and information technology projects.
Appendix: Key financial data and indicators FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE
| |||
Principal accounting data |
|||
Items |
For twelve months |
Changes over the same period of the preceding year (%) | |
2017 (RMB million) |
2016 (RMB million) | ||
Operating income |
2,360,193 |
1,930,911 |
22.2 |
Net profit attributable to equity shareholders of the Company |
51,119 |
46,416 |
10.1 |
Net profit attributable to equity shareholders of the Company after deducting extraordinary gain/loss items |
45,582 |
29,713 |
53.4 |
Net cash flows from operating activities |
190,935 |
214,543 |
(11.0) |
At 31 December 2017 (RMB million) |
At 31 December 2016 (RMB million) |
Change from the end of last year (%) | |
Total equity attributable to equity shareholders of the Company |
727,244 |
712,232 |
2.1 |
Total assets |
1,595,504 |
1,498,609 |
6.5 |
Principal financial indicators |
|||
Items |
For twelve months ended 31 December |
Changes over the same period of the preceding year (%) | |
2017 (RMB) |
2016 (RMB) | ||
Basic earnings per share |
0.422 |
0.383 |
10.2 |
Diluted earnings per share |
0.422 |
0.383 |
10.2 |
Basic earnings per share after deducting extraordinary gain/loss items |
0.376 |
0.245 |
53.5 |
Weighted average return on net assets (%) |
7.14 |
6.68 |
0.46 percentage points |
Weighted average return on net assets after deducting extraordinary gain/loss items (%) |
6.37 |
4.33 |
2.04 percentage points |
Net cash flow from operating activities per share |
1.577 |
1.772 |
(11.0) |
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS | |||
Principal accounting data |
|||
Items |
For twelve months |
Changes over the same period of the preceding year (%) | |
2017 (RMB million) |
2016 (RMB million) | ||
Operating Profit |
71,470 |
77,193 |
(7.4) |
Net profit attributable to owners of the Company |
51,244 |
46,672 |
9.8 |
Net cash generated from operating activities |
1.577 |
1.772 |
(11.0) |
At 31 December 2017 (RMB million) |
At 31 December 2016 (RMB million) |
Change from the end of last year (%) | |
Equity attributable to owners of the Company |
726,120 |
710,994 |
2.1 |
Total assets |
1,595,504 |
1,498,609 |
6.5 |
Principal financial indicators |
|||
Items |
For twelve months |
Changes over the same period of the | |
2017 (RMB) |
2016 (RMB) | ||
Basic earnings per share |
0.423 |
0.385 |
9.8 |
Diluted earnings per share |
0.423 |
0.385 |
9.8 |
Return on capital employed (%) |
8.26 |
7.30 |
0.96 percentage points |
The following table sets forth the operating revenues, operating expenses and operating profit / (loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between 2017 and 2016.
For twelve months |
Changes | ||
2017 |
2016 | ||
(RMB million) |
(%) | ||
Exploration and Production Segment |
|||
Operating revenues |
157,505 |
115,939 |
35.9 |
Operating expenses |
203,449 |
152,580 |
33.3 |
Operating (loss)/profit |
(45,944) |
(36,641) |
- |
Refining Segment |
|||
Operating revenues |
1,011,853 |
855,786 |
18.2 |
Operating expenses |
946,846 |
799,521 |
18.4 |
Operating (loss)/profit |
65,007 |
56,265 |
15.5 |
Marketing and Distribution Segment |
|||
Operating revenues |
1,224,197 |
1,052,857 |
16.3 |
Operating expenses |
1,192,628 |
1,020,704 |
16.8 |
Operating (loss)/profit |
31,569 |
32,153 |
(1.8) |
Chemicals Segment |
|||
Operating revenues |
437,743 |
335,114 |
30.6 |
Operating expenses |
410,766 |
314,491 |
30.6 |
Operating (loss)/profit |
26,977 |
20,623 |
30.8 |
Corporate and others |
|||
Operating revenues |
974,850 |
739,947 |
31.7 |
Operating expenses |
979,334 |
736,735 |
32.9 |
Operating (loss)/profit |
(4,484) |
3,212 |
- |
Elimination of inter-segment profit/(loss) |
(1,655) |
1,581 |
- |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: |
Media Inquiries: |
Beijing |
|
Tel:(86 10) 5996 0028 |
Tel:(86 10) 5996 0028 |
Fax:(86 10) 5996 0386 |
Fax:(8610) 5996 0386 |
Email:ir@sinopec.com |
Email:ir@sinopec.com |
Hong Kong |
|
Tel:(852) 2824 2638 |
Tel:(852) 2522 1838 |
Fax:(852) 2824 3669 |
Fax:(852) 2521 9955 |
Email:ir@sinopechk.com |
Email:sinopec@prchina.com.hk |
View original content:http://www.prnewswire.com/news-releases/sinopecs-dividend-payout-ratio-for-2017-reaches-118-net-profit-is-rmb-512-billion-300619097.html
SOURCE China Petroleum & Chemical Corporation
BEIJING, Oct. 30, 2017 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its unaudited results for the nine months ended 30 September 2017.
Financial Highlights:
Business Review:
In the first three quarters of 2017, global economy recorded moderate recovery and Chinese economy maintained steady growth with gross domestic product (GDP) up 6.9% year-on-year. According to the statistics, domestic demand and consumption of refined oil products, natural gas and major chemicals grew significantly, and gross margin for chemical products remained strong. By fully utilizing its integrated value chain, the Company unleashed its potentials, enhanced its efficiency and reduced costs. It endeavoured to coordinate all aspects of work and realised outstanding results.
Exploration and Production:
The Company focused on reserve increase and development returns through the operation and production with superior results achieved. In exploration, the Company continued to focus on discovery of high quality, large scale and low cost reserves. New oil discoveries were made in Tahe Basin of Xinjiang, Junggar Basin, Shengli Oilfield and North Jiangsu Basin, and new natural gas discoveries were made in Sichuan Basin and Ordos Basin. In production, the Company arranged crude oil production in a flexible manner and resumed production of some shut-down wells amid upward trend of crude oil price. Importance was attached to natural gas development, through expediting natural gas capacity construction in Hangjinqi area of Ordos and fully promoting Phase II of Fuling Shale Gas development project. In the first three quarters, oil and gas production of the Company was 332.63 million barrels of oil equivalent, down by 3.2% over the same period last year, of which crude oil production dropped by 4.0% while natural gas grew by 21.0%. The Exploration and Production Segment had an operating loss of RMB 26.523 billion with reduction of RMB 3.893 billion compared with same period last year.
Refining:
The Company's refined oil products mix has been optimised to address market demand changes, more high value-added products were produced and diesel-to-gasoline ratio was 1.16. The Company actively promoted refined oil products quality upgrading, and the GB VI quality upgrading plan for "2+26" cities in North China completed ahead of schedule. The Company optimised crude oil sourcing and allocation, as well as adjusting procurement strategy according to changes of crude oil price, to lower our feedstock cost and transportation fee, and increased export of refined oil products to help maintain high utilisation rates of refining facilities. The advantages of centralised marketing took full play, and profitability of asphalt, lubricant and LPG was maintained. In the first three quarters, refinery throughput and refined oil products production increased by 1.3% and 1.1% respectively, among which gasoline up by 1.5%, jet fuel up by 6.3% and diesel down by 1.3% over the same period last year. The Refining Segment realised an operating profit of RMB 43.854 billion, up by 3.4% over the same period last year.
Marketing and Distribution:
The Company took full advantages of our integrated business and distribution network, as well as further enhancing the synergy between fuel and non-fuel businesses, to actively respond to more competitive market conditions, and achieved good operational results. The Company optimised internal and external resources, put all efforts to expand market, and realised sustained growth in total sales volume of refined oil products. The Company flexibly adjusted our marketing strategies, promoted branding gasoline and increased retail volume of premium gasoline. The Company innovated operational models and optimised layout of service stations, and expedited revamping of storage and transportation facilities of refined oil products to further improve our distribution network. By means of "Internet+" and other marketing measures, the Company put more efforts on cultivation of major products and self-owned brand products and promoted rapid growth of non-fuel business. The Company proactively promoted vehicle natural gas business, expediting the construction and operation of CNG/LNG stations. In the first three quarters, total sales volume of refined oil products was 150 million tonnes, up by 3.1% over the same period last year. Total domestic sales volume of refined oil products was 133 million tonnes, up by 2.8%. Vehicle natural gas sales volume increased by 32.9% over the same period last year. Transaction of non-fuel business reached RMB 41 billion, up by 52.3% compared with the same period last year. The Marketing and Distribution Segment realised an operating profit of RMB 23.482 billion, down by 3.3% over the same period last year.
Chemicals:
The Company continued the "basic and high-end" chemical business development concept to promote effective supply. In the first three quarters, the Company optimised operations based on marginal contribution and gross margin of chemical facilities to promote profitability. The Company deepened adjustments of feedstock mix to reduce chemical feedstock cost, and pressed ahead optimisation of product slate, producing more market-oriented and high value-added products. The Company put advantages of marketing network into full play and conducted differentiated and tailor-made measures to expand sales scale. The Company strengthened the integration among production, sales, R&D and application, and intensified efforts on R&D, production and promotion of new products, with the ratio of performance compound reaching 62.5% and the differential ratio of synthetic fiber reaching 89.1%. In the first three quarters, ethylene production reached 8.534million tonnes, up by 5.2% and chemical sales volume was 57.58 million tonnes, up by 14.1% over the same period last year. The Chemicals Segment realised an operating profit of RMB 16.727 billion, up by 8.3% over the same period last year.
Capital Expenditure:
Focusing on quality and returns of investment, the Company continuously optimised its investment projects. In the first three quarters, total capital expenditures were RMB 29.101 billion. Capital expenditures for the exploration and production segment were RMB 10.896 billion, mainly for Fuling Shale Gas and Hangjinqi Natural Gas capacity construction, Shengli oilfield and Xibei oilfield crude oil capacity construction, Guangxi LNG Terminal Project, Tianjin LNG Terminal Project, Wen 23 Gas Storage Project, boosting project of Sichuan-to-East China Pipeline as well as overseas projects. Capital expenditures for the refining segment were RMB 8.522 billion, mainly for Zhongke integrated refining and chemical project, product mix adjustments of Zhenhai and Maoming refineries, and GB VI gasoline and diesel quality upgrading projects. Capital expenditures for the marketing and distribution segment were RMB 5.254 billion, mainly for constructing refined oil products depots, pipelines and service stations. Capital expenditures for the chemicals segment were RMB 3.735 billion, mainly for Zhongke integrated refining and chemical project, Hainan aromatics project, capital injection of Gulei integrated refining and chemical project, Zhongan and other coal chemical projects, as well as feedstock optimisation projects and product mix adjustment projects of Jinling and Maoming. Capital expenditures for corporate and others were RMB 694 million, mainly for R&D facilities and information technology application projects.
Focusing on transformation of growth pattern and structural adjustments, as well as improvement of quality and efficiency and upgrading of operation, the Company optimises capital expenditure arrangement for 2017 which is adjusted from RMB 110.2 billion to RMB 98.5 billion, of which, capital expenditure for the exploration and production segment is RMB 42.7 billion, for the refining segment is RMB 21.3 billion, for the chemicals segment is 12.5 billion, for corporate and others is RMB 4.0 billion and for the marketing and distribution segment maintains at RMB 18.0 billion.
Summary of Principal Operating Results for the First Three Quarters | |||||
Operating data |
Unit |
For nine-month period |
Changes (%) | ||
2017 |
2016 | ||||
Exploration and production | |||||
Oil and gas production1 |
million boe |
332.63 |
322.29 |
3.21 | |
Crude oil production |
million barrels |
220.21 |
229.36 |
(3.99) | |
China |
million barrels |
186.09 |
191.26 |
(2.70) | |
Overseas |
million barrels |
34.12 |
38.10 |
(10.45) | |
Natural gas production |
billion cubic feet |
674.15 |
557.15 |
21.00 | |
Realised crude oil price |
USD/barrel |
47.05 |
35.44 |
32.76 | |
Realised natural gas price |
USD/thousand cubic feet |
5.32 |
5.48 |
(2.92) | |
Refining2 | |||||
Refinery throughput |
million tonnes |
177.46 |
175.25 |
1.26 | |
Gasoline, diesel and kerosene |
million tonnes |
112.20 |
111.02 |
1.06 | |
Gasoline |
million tonnes |
42.73 |
42.09 |
1.52 | |
Diesel |
million tonnes |
49.50 |
50.15 |
(1.30) | |
Kerosene |
million tonnes |
19.97 |
18.78 |
6.34 | |
Light chemical feedstock |
million tonnes |
28.54 |
28.45 |
0.32 | |
Light products yield |
% |
75.84 |
76.35 |
(0.51) percentage | |
Refining yield |
% |
94.76 |
94.47 |
0.29 | |
Marketing and Distribution | |||||
Total sales of refined oil products |
million tonnes |
150.23 |
145.72 |
3.09 | |
Total domestic sales volume of |
million tonnes |
133.26 |
129.58 |
2.84 | |
Retail |
million tonnes |
90.67 |
89.79 |
0.98 | |
Direct sales & Wholesale |
million tonnes |
42.60 |
39.79 |
7.06 | |
Total number of Sinopec-branded |
stations |
30,728 |
30,603 |
0.41 | |
Company-operated |
stations |
30,722 |
30,597 |
0.41 | |
Annualised average throughput per |
tonnes/station |
3,935 |
3,899 |
0.92 | |
Chemical2 | |||||
Ethylene |
thousand tonnes |
8,534 |
8,115 |
5.16 | |
Synthetic resin |
thousand tonnes |
11,791 |
11,138 |
5.86 | |
Synthetic rubber |
thousand tonnes |
642 |
619 |
3.72 | |
Monomers and polymers for |
thousand tonnes |
7,061 |
6,830 |
3.38 | |
Synthetic fibre |
thousand tonnes |
923 |
934 |
(1.18) | |
Note: | |||||
1. Conversion: in the first three quarters of 2017, for domestic production of crude oil, 1 tonne = 7.10 barrels; for overseas production of crude oil, 1 tonne=7.21barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet. | |||||
2. Including 100% production of domestic joint ventures. | |||||
3. The number of service stations in 2016 was as of 31 December 2016. | |||||
4. Throughput per service station was annualised. |
Appendix | |||
Principal financial data and indicators | |||
Principal financial data and indicators prepared in accordance with China | |||
Accounting Standards for Business Enterprises (ASBE) | |||
Units: RMB million | |||
As of 30 |
As of 31 |
Changes from the | |
Total assets |
1,476,655 |
1,498,609 |
(1.5) |
Total equity attributable to |
716,511 |
712,232 |
0.6 |
Nine Months |
Changes over the | ||
2017 |
2016 | ||
Net cash flow from operating |
111,193 |
131,700 |
(15.6) |
Operating income |
1,744,955 |
1,363,945 |
27.9 |
Net profit attributable to |
38,373 |
29,166 |
31.6 |
Net profit attributable to |
36,718 |
28,337 |
29.6 |
Weighted average return on |
5.37 |
4.26 |
1.11 percentage points |
Basic earnings per share |
0.317 |
0.241 |
31.5 |
Diluted earnings per share |
0.317 |
0.241 |
31.5 |
Extraordinary (gain)/loss items |
Third Quarter 2017 RMB million |
Nine Months 2017 RMB million |
Loss on disposal of non- |
132 |
230 |
Donations |
83 |
96 |
Gain on holding and disposal |
(96) |
(257) |
Other extraordinary income |
(980) |
(2,429) |
Subtotal |
(861) |
(2,360) |
Tax effect |
203 |
590 |
Total |
(658) |
(1,770) |
Equity shareholders of |
(662) |
(1,655) |
Minority interests |
4 |
(115) |
Principal financial data and indicators prepared in accordance with International | |||
Financial Reporting standards (IFRS) | |||
Units: RMB million | |||
As of 30 |
As of 31 |
Changes from the | |
Total assets |
1,476,655 |
1,498,609 |
(1.5) |
Equity attributable to owners |
715,347 |
710,994 |
0.6 |
Nine Months |
Changes over the | ||
2017 |
2016 | ||
Operating profit |
55,757 |
51,430 |
8.4 |
Net profit attributable to |
39,404 |
30,107 |
30.9 |
Basic earnings per share |
0.325 |
0.249 |
30.5 |
Diluted earnings per share |
0.325 |
0.249 |
30.5 |
Return on net assets (%) |
5.51 |
4.35 |
1.16 percentage points |
Net cash generated from |
111,193 |
131,700 |
(15.6) |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec Corp. sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: |
Media Inquiries: |
Beijing |
|
Tel: (86 10) 5996 0028 |
Tel: (86 10) 5996 0028 |
Fax: (86 10) 5996 0386 |
Fax: (8610) 5996 0386 |
Email: ir@sinopec.com |
Email: ir@sinopec.com |
Hong Kong |
|
Tel: (852) 2824 2638 |
Tel: (852) 2522 1838 |
Fax: (852) 2824 3669 |
Fax: (852) 2521 9955 |
Email: ir@sinopechk.com |
Email: sinopec@prchina.com.hk |
View original content:http://www.prnewswire.com/news-releases/sinopec-corps-net-profit-for-9m-2017-surges-more-than-30-y-o-y-300545438.html
SOURCE China Petroleum & Chemical Corporation
BEIJING, Aug. 27, 2017 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company")(HKEX: 386; SSE: 600028; NYSE: SNP) today announced its interim results for the six months ended 30 June 2017.
Financial Highlights:
Business Highlights:
In the first half of 2017, global economy recorded moderate recovery and Chinese economy maintained steady growth with gross domestic product (GDP) up by 6.9% year on year. With abundant supply, domestic refined oil products market witnessed strong competition. According to the statistics, domestic consumption of refined oil products increased by 5.5% compared with the first half of 2016, among which gasoline and kerosene consumption maintained strong growth momentum, and diesel consumption reversed its downward trend and realised growth year on year. Domestic demand for natural gas accelerated, up by 15.2% compared with the first half of 2016. Domestic consumption of major chemicals grow significantly with consumption of ethylene equivalent up by 10.5% year on year, and gross margin for chemical products remained strong.
Mr. Wang Yupu, Chairman of Sinopec, said, "During the first half of 2017, we fully implemented value-oriented growth, innovation driven development, integrated resource allocation, openness to cooperation, and green, low-carbon development strategies and achieved solid operating results. Looking into the second half of 2017, we expect more reform measures to be announced by the Chinese government to revitalise real economy, the "Belt and Road" Initiative, synergetic development of Beijing-Tianjin-Hebei and the Yangtze River Economic Belt development will be further implemented. The China's economy will maintain steady growth and drives the demand of refined oil products and petrochemical products as well as creates new growth opportunities for petroleum and petrochemical industry. The Company will continue to focus on supply-side structural reform, progressing with growth stabilisation, market expansion, cost reduction, structural adjustments, reform, and consolidating the basis as to deliver superior business results, providing larger value for our country, our shareholders, our staff, and our society."
Business Review
Exploration and Production
In the first half of 2017, facing with low oil prices, the Company focused on reserve increase and development returns through our operation and production with superior results achieved. In exploration, our major direction maintained to focus on identification of high quality, large scale and low cost reserves. Number of new oil discoveries were made in Tahe Basin of Xinjiang, Junggar Basin, Shengli Oilfield and North Jiangsu Basin, and new natural gas discoveries were made in Sichuan Basin and Ordos Basin. In development, natural decline rate of natural fields was well controlled through refined development. Importance was attached to natural gas development, through expediting natural gas capacity construction in the Hangjinqi area of Erdos and fully promoting Phase II of Fuling Shale Gas development project. Production in the first half of 2017 was 221.38 million barrels of oil equivalent, up by 1.1% year on year, of which domestic crude production was 123.16 million barrels, overseas crude production was 22.82 million barrels, and total gas production was 452.12 billion cubic feet, increased 16.3% compared to the same period of last year.
In the first half of 2017, operating revenues of the segment were RMB 74.1 billion, representing an increase of 41.1% year on year. This was mainly due to increased crude oil prices and expanded scale of LNG business. In the first half of 2017, the oil and gas lifting cost was RMB 767.3 per tonne, representing an increase of 3.2% year on year. In the first half of 2017, the segment applied low-cost development principle throughout its production and operation processes, and realized good results. Operating loss of this segment was RMB 18.3 billion in the first half of 2017, a decrease of RMB 3.6 billion compared with the same period of last year.
Exploration and Production: Summary of Operations
Six-month period ended 30 June |
Changes | ||
2017 |
2016 |
(%) | |
Oil and gas production (mmboe) |
221.38 |
218.99 |
1.1 |
Crude oil production (mmbbls) |
145.98 |
154.17 |
(5.3) |
China |
123.16 |
128.38 |
(4.1) |
Overseas |
22.82 |
25.79 |
(11.5) |
Natural gas production (bcf) |
452.12 |
388.69 |
16.3 |
Refining
In the first half of 2017, our refined oil products mix has been optimized to address market demand changes, more high value-added products were produced and diesel-to-gasoline ratio further decreased to 1.15. We actively promoted refined oil products quality upgrading, and the GB VI quality upgrading plan for "2+26" cities in North China completed ahead of schedule. Crude oil sourcing optimisation continued to lower our feedstock cost, and export of refined oil products was increased moderately to help maintain high operational utilisation rates of refining facilities. The advantages of centralised marketing took full play, and profitability of asphalt, lubricant and LPG was maintained. In the first half of 2017, we processed 118 million tonnes of crude oil, increased by 1.6% compared to the same period of last year, and produced 74.11 million tonnes of refined oil products, with production of gasoline and kerosene up by 1.4% and 5.9% respectively, from levels in the first half of 2016.
In the first half of 2017, operating revenues of the segment were RMB 488.2 billion, representing an increase of 23.0% year on year. This was mainly attributable to increased prices of products.
In the first half of 2017, the refining margin (defined as sales revenues less crude oil and refining feedstock costs and taxes other than income tax, divided by the throughput of crude oil and refining feedstock) was RMB 473.7 per tonne, representing a decrease of 7.9% year on year. In the first of 2016, crude oil prices dropped below the lower threshold prescribed in the domestic refined oil product pricing mechanism for some period, and domestic refined oil prices were not cut during the corresponding period. In the first half of 2017, such phenomenon did not occur, as the result the prices spread between products and feedstock narrowed compared with the same period of 2017. The segment managed to improve its refining margin by advancing oil products quality upgrading and optimising product mix. In the first half of 2017, the segment realised an operating profit of RMB 29.4 billion, representing a decrease of RMB 3.2 billion year on year.
Refining: Summary of Operations
Six-month period ended 30 June |
Changes | ||
2017 |
2016 |
(%) | |
Refinery throughput (million tonnes) |
117.79 |
115.90 |
1.6 |
Gasoline, diesel and kerosene production (million tonnes) |
74.11 |
73.26 |
1.2 |
Gasoline (million tonnes) |
28.41 |
28.03 |
1.4 |
Diesel (million tonnes) |
32.67 |
32.93 |
(0.8) |
Kerosene (million tonnes) |
13.03 |
12.30 |
5.9 |
Light chemical feedstock production (million tonnes) |
18.94 |
19.37 |
(2.2) |
Note: Includes 100% of production of domestic joint ventures.
Marketing and Distribution
In the first half of 2017, we took full advantages of our integrated business and distribution network to actively respond to over-supplied and competitive market conditions, and achieved good operational results. We optimised internal and external resources, put all efforts to expand market, and realised sustained growth in total sales volume of refined oil products. We flexibly adjusted our marketing strategies, promoted branding gasoline and increased retail volume of premium gasoline. We carried out new operational models and optimised layout of service stations, and expedited revamping of storage and transportation facilities of refined oil products to further improve our distribution network. We proactively promote vehicle natural gas business, expediting the construction and operation of CNG/LNG stations, vehicle natural gas sales volume increased by 28.2% year on year. The total sales volume of refined oil products in the first half of 2017 was up by 1.4% from the corresponding period last year to 98.55 million tonnes, of which domestic sales accounted for 87.22 million tonnes, up by 0.8%. By means of "Internet +" and other marketing measures, we promoted rapid growth of new business, put more efforts on cultivation of major products and self-owned brand products, transaction value of emerging business (non-fuel) was RMB 27.8 billion, up by 50% from the first half of 2016.
In the first half of 2017, the operating revenues of the segment were RMB 606.0 billion, increased by 21.0% year on year. This was mainly due to the increasing refined oil products prices. In the first half of 2017, the total sales volume and margin refined oil products increased as a result of the segment efforts in expanding market. The segment's operating profit was RMB 16.6 billion, representing an increase of RMB 0.8 billion year on year.
Marketing and Distribution: Summary of Operations
Six-month period ended 30 June |
Changes | ||
2017 |
2016 |
(%) | |
Total sales volume of refined oil products (million tonnes) |
98.55 |
97.17 |
1.4 |
Total domestic sales volume of refined oil products (million tonnes) |
87.22 |
86.51 |
0.8 |
Retail (million tonnes) |
58.68 |
59.65 |
(1.6) |
Direct sales and Wholesale (million tonnes) |
28.54 |
26.86 |
6.3 |
Annualised average throughput per station (tonne/station) |
3,832 |
3,889 |
(1.5) |
As of 30 June 2017 |
As of 31 December 2016 |
Change from the end of last year(%) | |
Total number of Sinopec-branded service stations |
30,633 |
30,603 |
0.1 |
Company-operated |
30,627 |
30,597 |
0.1 |
Chemicals
We continued the "basic and high end" chemical business development concept to promote effective supply. In the first half of 2017, based on contribution of the marginal benefit and gross margin of chemical facilities, we optimised operations based on marginal contribution and gross margin of chemical facilities to promote profitability. Ethylene production for the first half of 2017 was 5.609 million tonnes, up by 2.4% from the corresponding period last year. We deepened adjustments of feedstock mix to reduce chemical feedstock cost, and pressed ahead optimisation of product slate, producing more market-oriented and high value-added products, strengthened the integration among production, sales, R&D and application, and intensified efforts on R&D, production and promotion of new products, with the ratio of performance compound reaching 62% up by 4 percent points from the same period of last year, and the differential ratio of synthetic fiber reaching 88.2% up by 4.9 percent points year on year. At the same time, implementing low inventory marketing strategy, putting advantages of marketing network into full play, conducting differentiated and tailor-made measures, the Company provided whole-process solutions and value-added services to our customers. In the first half of 2017, total chemicals sales volume increased by 13.6% from the corresponding period last year to 37.30 million tonnes.
In the first half of 2017, operating revenues of the chemicals segment were RMB 208.4 billion, representing an increase of 39.7% year on year, which was mainly due to significant increasing chemical products prices and sale volume year on year. In the first half of 2017, the operating expenses of the segment were RMB 196.3 billion, representing an increase of 40.7% year on year, which was mainly due to a significant increase of feedstock prices. The segment's operating profit in the first half of 2017 was RMB 12.2 billion, representing an increase of 25.6% year on year.
Major Chemical Products: Summary of Operations Unit of production: 1,000 tonne
Six-month period ended 30 June |
Changes | ||
2017 |
2016 |
(%) | |
Ethylene |
5,609 |
5,478 |
2.4 |
Synthetic resin |
7,802 |
7,500 |
4.0 |
Synthetic fiber monomer and polymer |
4,659 |
4,672 |
(0.3) |
Synthetic fiber |
616 |
637 |
(3.3) |
Synthetic rubber |
412 |
411 |
0.2 |
Note: Includes 100% of production of domestic joint ventures.
Health, Safety and the Environment
The Company valued safe production and intensified safety supervision. In the first half of this year, we strengthened identification and prevention of risks, further tightened hazard management of tank farms, reinforced on-site safety supervision and management, advanced contractor health and safety control and tightened safety management of key areas including offshore operations, well control, coal mines and hydrogen sulfide. Above all, we achieved safe production and operations.
By active implementation of our green and low-carbon strategy, we promoted the integrated management of energy and environmental protection, pushed forward pollution prevention and treatment, deeply implemented "Energy Efficiency Doubling" plan and continued to advance carbon asset management. Energy conservation, pollution reduction and carbon reduction all recorded remarkable results. In the first half of 2017, energy intensity was down by 1.8%, industrial water consumption was down by 1.2%, chemical oxygen demand in discharged water was down by 2.3%, sulfur dioxide emissions were down by 4.3% from levels in the corresponding period last year, and all hazardous chemicals, discharged water, gas, and solid waste were properly treated.
Capital Expenditures
Focusing on quality and returns of investment, the Company continuously optimised its investment projects. In the first half of 2017, total capital expenditures were RMB 15.953 billion. Capital expenditures for the exploration and production segment were RMB 6.870 billion, mainly for oil and gas capacity building, Tianjin LNG Terminal Project, Wen 23 Gas Storage Project, boosting project of Sichuan-to-East China Pipeline as well as overseas projects. Capital expenditures for the refining segment were RMB 3.672 billion, mainly for the Zhongke integrated refining and chemical project, product mix adjustments of ZRCC and Maoming, and GB VI gasoline and diesel quality upgrading projects. Capital expenditures for the marketing and distribution segment were RMB 2.500 billion, mainly for constructing refined oil products depots, pipelines and service stations. Capital expenditures for the chemicals segment were RMB 2.594 billion, mainly for integrated refining and chemical projects of Zhongke and Gulei and the high-efficiency and environmental friendly aromatics project in Hainan refinery. Capital expenditures for corporate and others were RMB 317 million, mainly for R&D facilities and information technology application projects.
Business Prospects
Looking into the second half of 2017, we expect more reform measures to be announced by the Chinese government to revitalise real economy, the "Belt and Road" Initiative, synergetic development of Beijing-Tianjin-Hebei and the Yangtze River Economic Belt development will be further implemented. The China's economy will maintain steady growth and drives the demand of refined oil products and petrochemical products as well as creates new growth opportunities for petroleum and petrochemical industry. Along with the adjustments of China's energy structure, demand of natural gas as cleaner energy resources will maintain robust growth rate. For the second half of 2017, the international crude oil prices are expected to fluctuate at a low level.
In the second half of 2017, in accordance with our objective of progressing at a steady pace to continually focus on growth stabilisation, market expansion, cost reduction, structural adjustments, reform, and consolidating the basis for the Company's further development. Our focuses are as following aspects:
For Exploration and Production, we will continue to advance high-efficiency exploration activities, enlarge economical recoverable reserve and raise reserve production ratio. In crude oil development, we will accelerate profitable development of new oilfields and profitable re-opening of suspended wells, optimise development structure of oilfields, control natural decline rate and solidify basis for stable production. In natural gas development, we will advance key projects for capacity construction, strengthen the efficiency of developed gas fields, optimise natural gas production and marketing plans and advance facilities construction. In the second half of 2017, we plan to produce 148 million barrels of crude oil, of which domestic production will account for 125 million barrels and overseas production will account for 23 million barrels. We plan to produce 427.5 billion cubic feet of natural gas during the period.
For Refining, we will center on the structural reform on the supply side and accelerate the construction of four regional refining centers. Based on market demand and industrial trend, we will optimise product mix and produce more gasoline, jet fuel, light oil and other high value-added products. We will complete GB V standard of regular diesel upgrading project, and accelerate upgrading progress of GB VI standard gasoline. We will fine-tune crude oil procurement and resource allocation to reduce procurement cost, fully optimise operations and ensure safe and stable production, take full play of integrated advantages of production and marketing to further optimise processing scheduling. We plan to process 118 million tonnes of crude in the second half of the year.
For Marketing and Distribution, we will coordinate scale and efficiency of the business, short-term and long-term goals, set up flexible operation strategies, optimize resources allocation, sparing no effort to expand markets and our business scale. We will further improve retail network layout, solidify and promote the advantages of e-commerce development. We will step up construction of natural gas stations to expand vehicle natural gas market. We will explore a new type of business model integrating "Internet-Marketing-Services" with IT technology and boost the growth of emerging business (non-fuel). In the second half, we plan to sell 87.78 million tonnes of refined oil products in the domestic market in the second half of 2017.
For Chemicals, we will continue to adjust our feedstock structure to lower costs, fine-tune our product slate, improve the coordinating mechanism between production, marketing, research and application, advance new product development, promotion and application, deliver more specialty and high-end products and speed up the upgrading of synthetic resin, synthetic rubber and synthetic fiber. We will deepen the structural adjustments of facilities and optimise production and operation based on contribution of the marginal contribution and gross margin so as to enhance efficiency and profitability. Meanwhile, we will better our marketing network, improve customer services and provide integrated solutions and value-added services. We plan to produce 6.05 million tonnes of ethylene in the second half of 2017.
In the second half of the year, the Company will continue to focus on supply-side structural reform, upgrade growth pattern to enhance efficiency and profitability, and fully implement value-oriented growth, innovation driven development, integrated resource allocation, openness to cooperation, and green, low-carbon development strategies so as to deliver superior business results.
Appendix: Key financial data and indicators
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE
Principal accounting data
Items |
Six-month periods ended 30 June |
Changes over the same period of the preceding year (%) | |
2017 RMB million |
2016 RMB million | ||
Operating income |
1,165,837 |
879,220 |
32.6 |
Net profit attributable to equity shareholders of the Company |
27,092 |
19,250 |
40.7 |
Net profit attributable to equity shareholders of the Company after deducting extraordinary gain/loss items |
26,099 |
18,290 |
42.7 |
Net cash flows from operating activities |
60,847 |
76,112 |
(20.1) |
At 30 June 2017 RMB million |
At 31 December 2016 RMB million |
Change from the end of last year(%) | |
Total equity attributable to equity shareholders of the Company |
718,878 |
712,232 |
0.9 |
Total assets |
1,487,538 |
1,498,609 |
(0.7) |
Principal financial indicators
Items |
Six-month periods ended 30 June |
Changes over the same period of the preceding year (%) | |
2017 RMB |
2016 RMB | ||
Basic earnings per share |
0.224 |
0.159 |
40.9 |
Diluted earnings per share |
0.224 |
0.159 |
40.9 |
Basic earnings per share after deducting extraordinary gain/loss items |
0.216 |
0.151 |
43.0 |
Weighted average return on net assets (%) |
3.79 |
2.81 |
0.98 percentage points |
Weighted average return on net assets after deducting extraordinary gain/loss items (%) |
3.65 |
2.67 |
0.98 percentage points |
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS
Principal accounting data
Items |
Six-month periods ended 30 June |
Changes over the same period of the preceding year (%) | |
2017 RMB million |
2016 RMB million | ||
Operating Profit |
39,309 |
35,108 |
12.0 |
Net profit attributable to owners of the Company |
27,915 |
19,919 |
40.1 |
Net cash generated from operating activities |
60,847 |
76,112 |
(20.1) |
At 30 June 2017 RMB million |
At 31 December 2016 RMB million |
Change from the end of last year (%) | |
Equity attributable to owners of the Company |
717,689 |
710,994 |
0.9 |
Total assets |
1,487,538 |
1,498,609 |
(0.7) |
Principal financial indicators
Items |
Six-month periods ended 30 June |
Changes over the same period of the preceding year (%) | |
2017 RMB |
2016 RMB | ||
Basic earnings per share |
0.231 |
0.165 |
40.0 |
Diluted earnings per share |
0.231 |
0.165 |
40.0 |
Return on capital employed (%) |
4.39 |
3.18 |
1.21 percentage points |
The following table sets forth the operating revenues, operating expenses and operating profit/(loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between the first half of 2017 and the first half of 2016.
Six-month periods ended 30 June |
Changes | ||
2017 |
2016 | ||
RMB million |
(%) | ||
Exploration and Production Segment |
|||
Operating revenues |
74,109 |
52,509 |
41.1 |
Operating expenses |
92,443 |
74,438 |
24.2 |
Operating (loss)/profit |
(18,334) |
(21,929) |
(16.4) |
Add: Share of profits/(losses) from associates and joint ventures |
875 |
(481) |
- |
Add: Investment income/(loss) |
48 |
23 |
108.7 |
EBIT |
(17,411) |
(22,387) |
(22.2) |
Refining Segment |
|||
Operating revenues |
488,172 |
396,969 |
23.0 |
Operating expenses |
458,779 |
364,381 |
25.9 |
Operating profit |
29,393 |
32,588 |
(9.8) |
Add: Share of profits from associates and joint ventures |
409 |
1,015 |
(59.7) |
Add: Investment income/(loss) |
10 |
(7) |
- |
EBIT |
29,812 |
33,596 |
(11.3) |
Marketing and Distribution Segment |
|||
Operating revenues |
605,960 |
500,969 |
21.0 |
Operating expenses |
589,394 |
485,192 |
21.5 |
Operating profit |
16,566 |
15,777 |
5.0 |
Add: Share of profits from associates and joint ventures |
1,416 |
869 |
62.9 |
Add: Investment income |
48 |
42 |
14.3 |
EBIT |
18,030 |
16,688 |
8.0 |
Chemicals Segment |
|||
Operating revenues |
208,429 |
149,186 |
39.7 |
Operating expenses |
196,272 |
139,508 |
40.7 |
Operating profit |
12,157 |
9,678 |
25.6 |
Add: Share of profits from associates and joint ventures |
4,242 |
2,547 |
66.5 |
Add: Investment income |
115 |
21 |
447.6 |
EBIT |
16,514 |
12,246 |
34.9 |
Corporate and others |
|||
Operating revenues |
488,015 |
312,816 |
56.0 |
Operating expenses |
487,276 |
312,394 |
56.0 |
Operating profit |
739 |
422 |
75.1 |
Add: Share of profits from associates and joint ventures |
709 |
648 |
9.4 |
Add: Investment income |
65 |
20 |
225.0 |
EBIT |
1,513 |
1,090 |
38.8 |
Elimination of inter-segment profit/(loss) |
(1,212) |
(1,428) |
- |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec Corp. sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: |
Media Inquiries: | |
Beijing Fax:(86 10) 5996 0386 Email:ir@sinopec.com |
Tel:(86 10) 5996 0028 Fax:(8610) 5996 0386 Email:ir@sinopec.com | |
Hong Kong Fax:(852) 2824 3669 Email:ir@sinopechk.com |
Tel:(852) 2522 1838 Fax:(852) 2521 9955 |
View original content:http://www.prnewswire.com/news-releases/sinopecs-net-profit-surges-by-40-to-rmb-279-billion-in-1h2017-300509984.html
SOURCE China Petroleum & Chemical Corporation
Net Profit Surged 158% YoY to RMB 17.2 Billion in 1Q 2017
Mid- and Down-stream Segments Achieve Continuous Growth and Integrated Advantages Fully Reflected
BEIJING, April 27, 2017 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company")(HKEX: 386; SSE: 600028; NYSE: SNP) today announced its unaudited results for the three months ended 31 March 2017.
Financial Highlights:
Business Review:
In the first quarter of 2017, focusing on enhancing growth quality, improving profitability and asset upgrading, the Company endeavoured to coordinate all aspects of work, mainly emphasising on cost reduction, market expansion, structural adjustments, consolidating growth basis and reforms, which resulted in notable good operating results.
Exploration and Production:
The Company gave priority to high-efficiency exploration with efforts on enhancing progressive exploration and reservoir appraisal and made new oil discoveries in Shunbei area in Xinjiang, as well as new natural gas findings in Sichuan basin. In development, we adopted a profit-oriented approach, adjusting development activities and enhancing cost discipline. Our production of natural gas increased and Phase Two Fuling shale gas development project was progressed according to the plan. In the first quarter, the oil and gas production of the Company was 111.93 million barrels of oil equivalent, declined by 2.4%, out of which crude oil output down by 9.2% while natural gas up by 12.8%, compared with the same period last year. Exploration and Production Segment had an operating loss of RMB 5.764 billion, less than by RMB 6.762 billion compared with the same period last year.
Refining:
The Company implemented market-oriented strategy, optimised resource allocation and managed to lower the purchasing cost of crude oil. We adjusted product mix and increased output of gasoline and kerosene with diesel-to-gasoline ratio further declining. We actively responded to challenges of abundant market supply by moderately increasing export of oil products and as a result, maintained our high utilisation rate. We brought our centralised marketing advantages fully into play to further improve margins of asphalt, lubricant, LPG and other products. We accelerated the quality upgrading of GB VI refined oil products and GB V regular diesel. In the first quarter, refinery throughput grew by 3.1% and refined oil products production grew by 1.9%, among which gasoline up by 2.8%, kerosene up by 7.1% and diesel down by 0.7% over the same period last year. Refining Segment realised an operating profit of RMB 16.754 billion, up by 24.6% compared with the same period last year.
Marketing and Distribution:
The Company intensified marketing strategy of balancing profits and volume with priority on profits and gave full play of our advantages in integrated operation and marketing network, as well as optimising internal and external resources and adjusting marketing tactics, to maintain total sales volume of refined oil products stable. We improved our marketing network through planning and construction of service stations as well as revamping storage and transportation facilities of refined oil products. In the first quarter, total sales volume of refined oil products was 47.44 million tonnes, up by 0.5% over the same period last year. Total domestic sales volume of refined oil products was 41.94 million tonnes, down by 3.1%. We accelerated the development of emerging business of which transaction volume reached RMB 13.48 billion, up by 51.3% compared with the same period last year. The operating profit of Marketing and Distribution Segment was RMB 9.161 billion, up by 19.1% compared with the same period last year.
Chemicals:
The Company fine-tuned its alignment among feedstock, facilities and product mix to raise profitability. We seised market opportunity of strong profitability from ethylene and ethylene derivative products, optimised operations of facilities, increased production of products well received in the market and high-value-added products, as well as enhanced R&D, production and promotion efforts on high-value-added products with specialty and new products as a percentage of synthetic resins reaching 61.1% and differential ratio of synthetic fiber reaching 88.2%. We implemented differentiated marketing strategies through bringing our advantages in distribution network into full play. In the first quarter, ethylene production reached 2.941 million tonnes, up by 4.2%, chemical sales volume was 18.592 million tonnes, up by 19.0% over the same period last year. The operating profit of Chemicals Segment was RMB 8.509 billion, up by 87.0% compared with the same period last year.
Capital Expenditure:
The Company continued to focus on quality and profitability with total capital expenditures of RMB 2,716 million in the first quarter. Capital expenditures for exploration and production segment were RMB 1,461 million, mainly for Fuling shale gas development projects, LNG terminal projects and overseas projects. Capital expenditures for refining segment were RMB 804 million, mainly for building of Zhongke refining-chemical base, structural adjustment and GB VI quality upgrading of gasoline and diesel. Capital expenditures for marketing and distribution segment were RMB 180 million, mainly for depots and storage facilities, pipeline network and service stations. Capital expenditures for chemical segment were RMB 225 million, mainly for Zhongke refining-chemical base and Hainan aromatics project. Capital expenditure for corporate and others were RMB 46 million, mainly for R&D and information technology projects.
Summary of Principal Operating Results for the First Quarter
Operating data |
Unit |
For three-month period ended 31 March |
Changes (%) | ||
2017 |
2016 | ||||
Exploration and production | |||||
Oil and gas production1 |
million boe |
111.93 |
114.68 |
(2.40) | |
Crude oil production |
million barrels |
72.08 |
79.42 |
(9.24) | |
China |
million barrels |
60.67 |
66.35 |
(8.56) | |
Overseas |
million barrels |
11.41 |
13.07 |
(12.70) | |
Natural gas production |
billion cubic feet |
238.35 |
211.36 |
12.77 | |
Realised crude oil price |
USD/barrel |
49.09 |
27.06 |
81.41 | |
Realised natural gas price |
USD/thousand cubic feet |
5.00 |
5.47 |
(8.59) | |
Refining2 | |||||
Refinery throughput |
million tonnes |
58.95 |
57.18 |
3.10 | |
Gasoline, diesel and kerosene production |
million tonnes |
37.03 |
36.33 |
1.93 | |
Gasoline |
million tonnes |
14.31 |
13.92 |
2.80 | |
Diesel |
million tonnes |
16.21 |
16.32 |
(0.67) | |
Kerosene incl. jet fuel |
million tonnes |
6.51 |
6.08 |
7.07 | |
Light chemical feedstock |
million tonnes |
9.97 |
9.74 |
2.36 | |
Light product yield |
% |
76.30 |
77.05 |
(0.75) percentage points | |
Refining yield |
% |
95.29 |
94.93 |
0.36 percentage points | |
Marketing and Distribution | |||||
Total sales volume of refined oil products |
million tonnes |
47.44 |
47.21 |
0.49 | |
Total domestic sales of refined oil products |
million tonnes |
41.94 |
43.29 |
(3.12) | |
Retail |
million tonnes |
28.63 |
29.66 |
(3.47) | |
Direct sales & Distribution |
million tonnes |
13.31 |
13.63 |
(2.35) | |
Total number of Sinopec-branded service stations3 |
stations |
30,752 |
30,603 |
0.49 | |
Company-operated |
stations |
30,746 |
30,597 |
0.49 | |
Throughput per station4 |
tonnes |
3,725 |
3,879 |
(3.97) | |
Chemicals2 | |||||
Ethylene |
thousand tonnes |
2,941 |
2,823 |
4.18 | |
Synthetic resin |
thousand tonnes |
4,074 |
3,840 |
6.09 | |
Synthetic rubber |
thousand tonnes |
227 |
205 |
10.73 | |
Monomers and polymers for synthetic fiber |
thousand tonnes |
2,424 |
2,328 |
4.12 | |
Synthetic fiber |
thousand tonnes |
308 |
311 |
(0.96) |
Note:
Appendix
Principal financial data and indicators
Principal financial data and indicators prepared in accordance with China Accounting Standards for Business Enterprises (ASBE)
Units: RMB million | |||
As of 31 March 2017 |
As of 31 December 2016 |
Changes from the end of the preceding year to the end of the reporting period (%) | |
Total assets |
1,478,917 |
1,498,609 |
(1.3) |
Total equity attributable to equity shareholders of the Company |
728,618 |
712,232 |
2.3 |
Three months |
Changes over the same period of the preceding year (%) | ||
2017 |
2016 | ||
Net cash flow from operating activities |
13,276 |
34,285 |
(61.3) |
Operating income |
582,185 |
414,061 |
40.6 |
Net profit attributable to equity shareholders of the Company |
16,633 |
6,190 |
168.7 |
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses |
16,540 |
6,403 |
158.3 |
Weighted average return on net assets (%) |
2.31 |
0.97 |
1.34 percentage points |
Basic earnings per share (RMB) |
0.137 |
0.051 |
168.6 |
Diluted earnings per share (RMB) |
0.137 |
0.051 |
168.6 |
Extraordinary gain/loss items |
During the reporting period |
(gains)/losses(RMB million) | |
Net loss on disposal of non-current assets |
16 |
Donations |
9 |
Government grants |
(209) |
Loss on holding and disposal of various investments |
(49) |
Other extraordinary income and expenses, net |
100 |
Subtotal |
(133) |
Tax effect |
33 |
Total |
(100) |
Equity shareholders of the Company |
(93) |
Minority interests |
(7) |
Principal financial data and indicators prepared in accordance with International Financial Reporting standards (IFRS)
Units: RMB million | |||
As of 31 March 2017 |
As of 31 December 2016 |
Changes from the end of the preceding year to the end of the reporting period (%) | |
Total assets |
1,478,917 |
1,498,609 |
(1.3) |
Total equity attributable to owners of the Company |
727,404 |
710,994 |
2.3 |
Three months |
Changes over the same period of the preceding year (%) | ||
2017 |
2016 | ||
Net cash generated from operating activities |
13,276 |
34,285 |
(61.3) |
Operating profit |
25,435 |
13,027 |
95.2 |
Net profit attributable to owners of the Company |
17,199 |
6,668 |
157.9 |
Basic earnings per share (RMB) |
0.142 |
0.055 |
158.2 |
Diluted earnings per share (RMB) |
0.142 |
0.055 |
158.2 |
Return on net assets (%) |
2.36 |
0.94 |
1.42 percentage points |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec Corp. sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: |
Media Inquiries: |
Beijing |
|
Tel: (86 10) 5996 0028 |
Tel: (86 10) 5996 0028 |
Fax: (86 10) 5996 0386 |
Fax: (8610) 5996 0386 |
Email: ir@sinopec.com |
Email: ir@sinopec.com |
Hong Kong |
|
Tel: (852) 2824 2638 |
Tel: (852) 2522 1838 |
Fax: (852) 2824 3669 |
Fax: (852) 2521 9955 |
Email: ir@sinopechk.com |
Email: sinopec@prchina.com.hk |
SOURCE China Petroleum & Chemical Corporation
BEIJING, April 25, 2017 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or "the Company") (HKEX: 386; CH: 600028; NYSE: SNP) announced that it has filed its 2016 Annual Report on Form 20-F with the United States Securities and Exchange Commission ("SEC").
The 2016 Annual Report is posted on the Company website at www.sinopec.com and can also be accessed electronically at www.sec.gov. Upon request, the Company will also deliver free of charge within a reasonable time a hard copy of its 2016 Annual Report, including its complete audited financial statements.
To request a hard copy, please contact the Company's Investor Relations team by telephone at +86 10 5996 0028, by e-mail at ir@sinopec.com or by written request to Board Secretariat at No. 22 Chaoyangmen North Street, Chaoyang District, Beijing 100728 Re: 2016 Annual Report.
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec Corp. sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Investor Inquiries:
Beijing
Tel: (8610) 5996 0028
Fax: (8610) 5996 0386
Email: ir@sinopec.com
Hong Kong
Tel: (852) 2824 2638
Fax: (852) 2824 3669
Email: ir@sinopechk.com
Media Inquiries:
Hong Kong
Tel: (852) 2522 1838
Fax: (852) 2521 9955
Email: sinopec@prchina.com.hk
SOURCE China Petroleum & Chemical Corporation
BEIJING, March 26, 2017 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2016.
Financial Highlights
Business Highlights
In 2016, global economic recovery remained weak. Meanwhile, China's economy maintained stable growth, with its gross domestic product (GDP) grew by 6.7%. As international oil prices hovered at low levels and trended upwards, domestic oil products supply remained abundant, leading to fierce competition in the market. Demand for chemicals grew steadily while China's environmental regulations became more stringent. The Company proactively addressed the changing market by focusing on improving its product quality, operating efficiency and business upgrade. It accelerated the business restructuring and pressed ahead with measures to address market development, optimisation, cost reduction and risk control, coordinating all aspects of its work. As a result, the Company delivered o better-than-expected operating results.
Mr. Wang Yupu, Chairman of Sinopec Corp. said, "Over the past year, we focused on the transformation of our growth mode and structural adjustments, which enabled us to improve the quality and efficiency of our assets as well as to upgrade our operations. Under the management's leadership, the entire staff worked together to advance these goals. We achieved significant improvement in our operating results through relentless joint efforts to explore new markets, optimise our operations, reduce costs and improve risk management. All these achievements marked a good start to our 13th Five-Year Plan. In our efforts to implement supply-side structural reform, the Company benefited from an integrated value chain, which allowed our businesses to complement each other. As we increased the effective supply of petroleum and petrochemical products and related services to the community, we reaped economic benefits and improved our asset utilisation. Looking ahead into 2017, the Company will adhere to the development strategies of value-oriented growth, innovation-driven development, integrated resource allocation, openness to cooperation, and green low-carbon development. In accordance with our objective of progressing at a steady pace, we will drive upgrades in our businesses and drive new breakthroughs."
Business Review
Exploration and Production
In 2016, confronting low oil prices environment and harsh conditions in the upstream sector, the Company strengthened measures to rein in costs and address its weaknesses. At the same time, it gave priority to high-efficiency exploration activities, sustained exploration efforts and made a number of important new discoveries in the Xinjiang Tahe Basin, the Beibu Gulf in Guangxi and the Yin-E Basin in Neimongol respectively, along with new shale gas findings in the Yongchuan block in Sichuan. As to resources development, the Company adopted a profit-oriented approach, adjusted the development structure, enhanced cost discipline, and cut low-efficiency oil production and high-cost EOR operations. It implemented Phase Two of Fuling Shale Gas development project to increase natural gas production. It also completed the mixed ownership reform of Sichuan-to-East China Pipeline Co., leading to the improvement in its asset utilisation. The Company's oil and gas production declined by 8.6% year-on-year to 431.29 million barrels of oil equivalent. Its domestic crude production dropped by 13.2% from the previous year, while natural gas production went up by 4.3% from a year ago.
In 2016, the operating revenue of this segment was RMB 115.9 billion, representing a decrease of 16.4% over 2015. The decrease was mainly attributable to the decline of realised price of crude oil and natural gas as well as the decrease in sales volume of crude oil. Despite a loss of approximately RMB 36.6 billion was made, this segment still generated positive free cash flow.
In 2016, the Company proactively controlled its expenses. The oil and gas lifting cost was USD 16.65 per tonne, representing a decrease of 5.5% from the previous year amid a 13.2% decrease in crude oil price.
Exploration and Production: Summary of Operations | |||
Twelve-month periods ended 31 |
Changes | ||
2016 |
2015 |
% | |
Oil and gas production (mmboe) |
431.29 |
471.91 |
(8.6) |
Crude oil production (mmbbls) |
303.51 |
349.47 |
(13.2) |
China |
253.15 |
296.34 |
(14.6) |
Overseas |
50.36 |
53.13 |
(5.2) |
Natural gas production (bcf) |
766.12 |
734.79 |
4.3 |
Refining
In 2016, the Company completed the upgrading of vehicle gasoline and diesel to National V standards before the schedule and actively promoted the upgrading of oil products to Beijing VI standards. It advanced the adjustment of its product structure and increased output of gasoline (especially premium gasoline) and kerosene, with the diesel-to-gasoline ratio further declining to 1.19. Moreover, the Company actively responded to the challenges of abundant market supply, and succeeded in maintaining the utilisation rate at a high level. Meanwhile, through superior feedstock optimization by its international trading business, the Company further cut crude procurement costs and achieved moderate increase in product exports. It brought its centralized marketing advantages into full play to further improve the margins for LPG, asphalt and other products. In 2016, the Company processed 236 million tonnes of crude and produced 149 million tonnes of refined oil products, up by 0.53% from the previous year. Gasoline production and kerosene production increased by 4.4% and 4.6% respectively.
In 2016, the operating revenues of this segment were RMB 855.8 billion, representing a decrease of 7.6% from 2015. This was mainly attributable to the decrease in refined oil products prices. In 2016, this segment seized the favorable opportunities arising from the bottoming out of crude oil prices to reinforce management in crude oil procurement, adjusted product mix based on market needs, increased export volume, and made great efforts to improve the profitability of self-distributed products. As a result, the operating performance of this segment significantly improved. In 2016, the operating profit of this segment totaled RMB 56.3 billion, representing an increase of RMB 35.3 billion as compared with 2015.
In 2016, refining gross margin was RMB 471.9 per tonne, representing an increase of RMB 153.8 per tonne as compared with 2015. The unit refining cash operating cost was RMB 165.7 per tonne, representing a decrease of RMB 1.9 per tonne when compared with 2015. The decrease was mainly because the Company enforced strict cost control, improved operating efficiency, as well as decreased operational costs in fuel, power and other auxiliaries facilities.
Refining: Summary of Operations | |||
For the twelve months |
Changes | ||
2016 |
2015 |
(%) | |
Refinery throughput (million tonnes) |
235.53 |
236.49 |
(0.4) |
Gasoline, diesel and kerosene production (million tonnes) |
149.17 |
148.38 |
0.5 |
Gasoline (million tonnes) |
56.36 |
53.98 |
4.4 |
Diesel (million tonnes) |
67.34 |
70.05 |
(3.9) |
Kerosene (million tonnes) |
25.47 |
24.35 |
4.6 |
Light chemical feedstock production (million tonnes) |
38.54 |
38.81 |
(0.7) |
Light yield (%) |
76.33 |
76.50 |
(0.17) percentage |
Refining yield (%) |
94.70 |
94.75 |
(0.05) percentage |
Note: Includes 100% of production of joint ventures. |
Marketing and Distribution
In 2016, the Company actively responded to changes in the market environment. It made the advantages of its integrated business model and distribution network into full play and achieved solid operating results. It optimised internal and external resources and achieved growth both in total sales volume and retail scale. It made timely adjustments to its marketing strategies, promoted effective supply and further expanded the retail volume of premium gasoline. It also improved its marketing network by accelerating the planning and construction of service stations and refined oil product pipelines. The Company increased the focus on vehicle-used natural gas business and expedited the construction and operation of CNG/LNG stations, achieving 25% growth in sales volume of vehicle-used natural gas. In 2016, the total sales volume of oil products was 195 million tonnes, of which domestic sales accounted for 173 million tonnes. Its non-fuel business maintained rapid growth with business scale increased and margins strengthened. The non-fuel business transaction volume reached RMB 35.1 billion, up by 41.4% from the previous year.
In 2016, the operating profit of this segment was RMB 32.2 billion, representing an increase of 11.4% when compared with 2015. The increase was mainly because the segment made full use of the advantages of end user marketing network, actively expanded the gasoline market, increased the sales volume of high octane number gasoline, made efforts to improve total sales volume, coordinate internal and external resources, increased the spread between sales and procurement prices as compared with 2015, and achieved better performance.
Marketing and Distribution: Summary of Operations | |||
For twelve months |
Changes | ||
2016 |
2015 |
% | |
Total sales volume of refined oil products (million tonnes) |
194.84 |
189.33 |
2.9 |
Total domestic sales volume of refined oil products (million tonnes) |
172.70 |
171.37 |
0.8 |
Retail (million tonnes) |
120.14 |
119.03 |
0.9 |
Direct sales and Wholesale |
52.56 |
52.34 |
0.4 |
Annualised average throughput per station (tonne/station) |
3,926 |
3,896 |
0.8 |
As of 31 |
As of 31 |
Changes | |
Total number of Sinopec-branded service stations |
30,603 |
30,560 |
0.1 |
Company-operated |
30,597 |
30,547 |
0.2 |
Chemicals
In 2016, the Company accelerated the development of basic and high-end chemicals to promote effective supply, and strengthened the operations of its manufacturing facilities by adjusting production slate and utilisation rates to achieve solid profit margins. It fine-tuned its chemical feedstock mix to lower costs, maximised production of high value-added products customized to meet market demands, and intensified its efforts to enhance research and development, production, marketing and sales of high value added new products, achieving good results. Ethylene output was 11.059 million tonnes, with the differential ratio of synthetic fiber reaching 86.5% and the specialty and new products as a percentage of synthetic resins reaching 61.4%. By implementing low-inventory and differentiated marketing strategies, its full-year chemical sales volume increased by 11.3% from the previous year to 69.96 million tonnes, with all produced chemicals sold.
In 2016, the operating revenue of the chemicals segment was RMB 335.1 billion, representing an increase of 1.9% as compared with that of 2015. This was mainly due to the increase in sales volume of chemical products as compared with 2015. In 2016, the operating profit of this segment was RMB 20.6 billion, representing an increase of RMB 1.1 billion as compared with 2015.
In 2016, this segment seized the favorable opportunities of the low price of feedstocks, further adjusted feedstock and product mix, integrated production with sales, strictly controlled costs and expenses. As a result, the chemical all-in costs further declined and the segment maintained robust profit margins.
Major Chemical Products: Summary of Operations Unit of production: 1,000 tonne | |||
For twelve months |
Changes | ||
2016 |
2015 |
(%) | |
Ethylene |
11,059 |
11,118 |
(0.5) |
Synthetic resin |
15,201 |
15,065 |
0.9 |
Synthetic fiber monomer and polymer |
857 |
843 |
1.7 |
Synthetic fiber |
9,275 |
8,994 |
3.1 |
Synthetic rubber |
1,242 |
1,282 |
(3.1) |
Note: Includes 100% of production of joint ventures. |
R&D
In 2016, the Company pushed ahead with innovation-driven strategy, continuing to advance R&D activities with notable results. In upstream business, its development in shale gas exploration technologies enabled it to make breakthroughs in shale gas exploration in Yongchuan, Chongqing. The breakthroughs in Ordovician oil and gas reservoir formation theory and exploration technologies led us to the discovery of the Shunbei field. In refining segment, the Company applied technologies such as those for production of high-octane gasoline from FCC diesel. In chemicals segment, the Company commercialised the production of ethylene glycol from syngas, adopted butadiene tail-gas selective hydrogenation technologies, employed technologies to produce light olefins from coal as well as olefin catalytic cracking technologies, and developed new products including environmentally friendly polypropylene resin with high stiffness and tenacity, and a specialty resin used in high performance medical spun-bond nonwoven fabrics. In 2016, the Company filed 5,612 patent applications at home and abroad, of which 3,942 were granted. The Company also won four second prizes in the National Technology and Innovation Awards and one golden award and nine excellent patent awards in China's Patent Award competition.
Capital Expenditures
In 2016, the Company focused on investment quality and efficiency, and continuously optimised its investment portfolio. Total capital expenditures for the year were RMB 76.456 billion. Capital expenditures for the exploration and production segment were RMB 32.187 billion, mainly for Fuling shale gas and Yuanba gas field development projects and the LNG terminal projects in Guangxi and Tianjin, as well as overseas projects. Capital expenditures for the refining segment were RMB 14.347 billion, mainly for gasoline and diesel quality upgrading projects, adjustments in the product mix and refinery revamping projects. Capital expenditures for the marketing and distribution segment were RMB 18.493 billion, mainly for constructing and renovating service stations and building refined oil product pipelines, depots and storage facilities, as well as for rectification of safety hazards. Capital expenditures for the chemicals segment were RMB 8.849 billion, mainly for adjustment of the feedstock and product structure, the Ningdong coal chemical project and the Zhongtianhechuang coal-to-chemical project. Capital expenditures for the corporate and others segment were RMB 2.58 billion, mainly for R&D facilities and information technology application projects.
Health, Safety and the Environment
The Company fully implemented its work safe production and accountability scheme, strengthened the identification and control of risks, completed the reduction of potential hazards from oil and gas pipelines, further pushed forward management on potential hazards from oil storage tanks, reinforced onsite supervision and management, and achieved overall safe production and operations. It standardised measures to enhance worker protection and improved occupational health safeguards for our employees. The Company advanced its green low-carbon strategy, established a more stringent environmental protection management system, completed the "Clear Water, Blue Sky" environmental protection project, and met emission reduction targets for major pollutants. Compared with the previous year, energy intensity was down by 1.59%, industrial water consumption was down by 1.1%, COD in discharged water was down by 3.86%, sulfur dioxide emissions were down by 4.84%, and all hazardous chemicals, discharged water, gas and solid wastes were properly treated.
Business Prospects
Looking ahead into 2017, the Company expects increasing uncertainties in the global economy. Meanwhile, China's economy is expected to maintain steady growth. International oil prices are expected to fluctuate at low levels, with domestic demand for refined oil products continuing to grow as the consumption structure undergoes further adjustments. Domestic demand for petrochemical products will increase steadily as the consumption structure gradually shifts towards the high end. In 2017, the Company will focus mainly on structural reforms on the supply side. It will advance quality and efficiency of its assets, lower costs, expand markets, make structural adjustments, deepen reforms, and consolidate the basis for further growth. The Company will undertake the following work during the year:
Exploration and Production: The Company will sustain its exploration activities, optimising its plans to achieve high efficiency exploration. It will step up efforts to look for low-cost discoveries and expand large-scale reserves to increase its resources. In oil development, the Company will fine-tune plans based on oil price trends and promote oilfield development by increasing the volume and profitability of both incremental and existing reserves. In gas development, it will advance key projects for capacity construction, refine the management of developed gas fields and optimise gas production and marketing plans. In 2017, the Company plans to produce 294 million barrels of crude oil, of which overseas production will account for 46 million barrels. It plans to produce 879.9 billion cubic feet of natural gas.
Refining: The Company will further promote the market-oriented, profitability driven strategy to optimise crude oil outsourcing and resources allocation and to lower purchasing costs. It will comprehensively adjust its production plans to ensure safe and reliable operations. Besides, it will enhance product structure by increasing the production of jet fuel and gasoline (especially premium gasoline) and further lowering the diesel-to-gasoline ratio. It will accelerate the quality upgrades and supply of Beijing VI vehicle-used gasoline and diesel and National V standards regular diesel. In 2017, the Company plans to process 240 million tonnes of crude and produce 150 million tonnes of oil products.
Marketing and Distribution: The Company will intensify marketing strategy of balancing profits and volume, with the priority on profits. It will undertake measures to fully explore markets, expand its retail volume and increase its market share. It will further improve the layout of end market network to reinforce its strengths in the development of network. It will accelerate construction of gas stations to strengthen its presence in the CNG/LNG market. Moreover, it will step up the promotion of key merchandise and proprietary brands and boost the growth of its non-fuel business. The Company will explore to build a new type of customer service center, employ techniques of Big Data analysis to conduct precision marketing and further its transformation into a modern integrated services provider. In 2017, the Company plans to sell 175 million tonnes of oil products in domestic market.
Chemicals: The Company will continue to adjust our feedstock mix to lower costs, fine tune its product slate to deliver more popular, profitable and high-value-added products, optimise its facility utilization rate, shut down facilities that contribute little to margins. It will deepen the adjustment on sector structure, through advancing the development of fine chemicals and biochemicals, and improving operations of our coal-chemical projects. Meanwhile, it will enhance the strategies of product differentiation and precision marketing, and provide customers with integrated solutions and value-added services. In 2017, the Company plans to produce 11.66 million tonnes of ethylene.
Research and Development: The Company will continue to implement the development strategy driven by innovation, improving mechanisms for technological innovation and fast-tracking key technical breakthroughs. In exploration and production, it will focus on increasing reserves and production volume and pushing ahead with breakthroughs in enhanced oil recovery technologies and development of difficult-to-tap reserves. In refining segment, R&D initiatives will address processing of heavy crude oil, quality upgrades of its oil products and adjustments in its product slate. In chemicals segment, the Company will focus on adjustments in product mix along with further progress in R&D for basic chemicals, synthetic materials, coal-chemicals, fine chemicals and bio-chemicals. The Company also expects to make progress in safety, environmental and energy-conserving technologies as well as prospective basic research to enhance its capabilities for innovation and to achieve new R&D breakthroughs.
Capital Expenditures: In 2017, the Company will devote attention to the quality and efficiency of investments, and optimize its investment projects. Capital expenditures for the year are budgeted at RMB 110.2 billion. The exploration and production segment will account for expenditures of RMB 50.5 billion, mainly for Phase Two of Fuling shale gas development project, Tianjin LNG and gas storage project, and overseas oil and gas projects development. The refining segment will account for RMB 22.8 billion, mainly for the building of refining bases, structural adjustments in the refining business, and revamping of refineries as well as the upgrading of oil products to National VI standards. The marketing and distribution segment will account for RMB 18 billion, mainly for revamping service stations, improving pipeline network, building oil tank farms and removing safety hazards. The chemicals segment will account for RMB 15.1 billion, mainly for the integrated refining and chemical project in Zhanjiang of Guangdong Province, the integrated refining and chemical project in Gulei of Fujian Province and the high-efficiency and environmentally friendly aromatics project in Hainan refinery. The corporate and others segment will account for RMB 3.8 billion, mainly for R&D and information technology projects.
Appendix: Key financial data and indicators
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE
Principal accounting data | |||
Items |
For twelve months |
Changes over the same | |
2016 |
2015 | ||
Operating income |
1,930,911 |
2,020,375 |
(4.4) |
Net profit attributable to equity shareholders of the Company |
46,416 |
32,281 |
43.8 |
Net profit attributable to equity shareholders of the Company after deducting extraordinary gain/loss items |
29,713 |
28,901 |
2.8 |
Net cash flows from operating activities |
214,543 |
165,740 |
29.4 |
At 31 December 2016 (RMB million) |
At 31 December 2015 (RMB million) |
Change from the | |
Total equity attributable to equity shareholders of the Company |
712,232 |
677,538 |
5.1 |
Total assets |
1,498,609 |
1,447,268 |
3.5 |
Principal financial indicators | |||
Items |
For twelve months |
Changes over the same | |
2016 (RMB) |
2015 (RMB) | ||
Basic earnings per share |
0.383 |
0.267 |
43.4 |
Diluted earnings per share |
0.383 |
0.267 |
43.4 |
Basic earnings per share after deducting extraordinary gain/loss items |
0.245 |
0.239 |
2.5 |
Weighted average return on net assets (%) |
6.68 |
5.07 |
1.61 percentage |
Weighted average return on net assets after deducting extraordinary gain/loss items (%) |
4.33 |
4.52 |
(0.19) percentage |
Net cash flow from operating activities per share |
1.772 |
1.371 |
29.2 |
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS
Principal accounting data | |||
Items |
For twelve months |
Changes over the same | |
2016 (RMB million) |
2015 (RMB million) | ||
Operating Profit |
77,193 |
56,822 |
35.9 |
Net profit attributable to owners of the Company |
46,672 |
32,512 |
43.6 |
Net cash generated from operating activities |
1.772 |
1.371 |
29.2 |
At 31 December 2016 (RMB million) |
At 31 December 2015 (RMB million) |
Change from the | |
Equity attributable to owners of the Company |
710,994 |
676,197 |
5.1 |
Total assets |
1,498,609 |
1,447,268 |
3.5 |
Principal financial indicators | |||
Items |
For twelve months |
Changes over the same | |
2016 (RMB) |
2015 (RMB) | ||
Basic earnings per share |
0.385 |
0.268 |
43.7 |
Diluted earnings per share |
0.385 |
0.268 |
43.7 |
Return on capital employed (%) |
7.30 |
5.23 |
2.07 percentage |
The following table sets forth the operating revenues, operating expenses and operating profit / (loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between 2016 and 2015.
For twelve months |
Changes | ||
2016 |
2015 | ||
(RMB million) |
(%) | ||
Exploration and Production Segment |
|||
Operating revenues |
115,939 |
138,653 |
(16.4) |
Operating expenses |
152,580 |
156,071 |
(2.2) |
Operating (loss)/profit |
(36,641) |
(17,418) |
- |
Refining Segment |
|||
Operating revenues |
855,786 |
926,616 |
(7.6) |
Operating expenses |
799,521 |
905,657 |
(11.7) |
Operating (loss)/profit |
56,265 |
20,959 |
168.5 |
Marketing and Distribution Segment |
|||
Operating revenues |
1,052,857 |
1,106,666 |
(4.9) |
Operating expenses |
1,020,704 |
1,077,811 |
(5.3) |
Operating (loss)/profit |
32,153 |
28,855 |
11.4 |
Chemicals Segment |
|||
Operating revenues |
335,114 |
328,871 |
1.9 |
Operating expenses |
314,491 |
309,395 |
1.6 |
Operating (loss)/profit |
20,623 |
19,476 |
5.9 |
Corporate and others |
|||
Operating revenues |
739,947 |
783,874 |
(5.6) |
Operating expenses |
736,735 |
783,490 |
(6.0) |
Operating (loss)/profit |
3,212 |
384 |
736.5 |
Elimination of inter-segment profit/(loss) |
1,581 |
4,566 |
- |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: |
Media Inquiries: |
Beijing |
|
Tel:(86 10) 5996 0028 |
Tel:(86 10) 5996 0028 |
Fax:(86 10) 5996 0386 |
Fax:(8610) 5996 0386 |
Email:ir@sinopec.com |
Email:ir@sinopec.com |
Hong Kong |
|
Tel:(852) 2824 2638 |
Tel:(852) 2522 1838 |
Fax:(852) 2824 3669 |
Fax:(852) 2521 9955 |
Email:ir@sinopechk.com |
Email:sinopec@prchina.com.hk |
SOURCE China Petroleum & Chemical Corporation
BEIJING, Oct. 27, 2016 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE and LSE: SNP) today announced its financial results for the first three quarters ended 30 September 2016.
Financial Highlights:
Business Review:
For first three quarters in 2016, the Company focused on growth quality and profitability and further enhanced structure adjustment and management. It optimised market-oriented operation, fully leveraged advantages across the integrated value chain, coordinated all aspects of work and overcame the impact of natural disasters, obtained fine operating results.
Exploration and Production: To address the challenge of low oil prices, the Company effectively optimised exploration and production activities and achieved positive results. In exploration, through technological progress and efficiency promotion, it attained new discoveries in Tahe of Xinjiang Autonomous Region, Beibu Gulf in Guangxi and Yin-E Basin in Nei Mongol Autonomous Region and new natural gas findings in west Sichuan and Erdos Basin. In development, Phase Two shale gas development project in Fuling Shale Gas field further facilitated its shale gas development. In production, the Company strengthened cost discipline and reduced high-cost oil production. In the first three quarters, oil and gas production of the Company was 322.29 million barrels of oil equivalent, down 8.13% year-on-year. Out of which, crude oil output dropped by 12.58% from a year ago while natural gas output grew by 5.09%. Earnings before interest and taxes (EBIT) of the Exploration and Production segment were RMB -30.865 billion.
Refining: The Company actively responded to challenges arising from sharp increase of throughput from independent refineries, ample market supply and changes in refined oil products demand. It further optimised its refined oil product mix by increasing production of gasoline and kerosene, reduced its crude purchasing costs, kept steady unit load and pressed ahead with refined oil products quality upgrading. Based on customer need, it strengthened marketing service of other refined oil products, such as asphalt and LPG. In the first three quarters, refinery throughput and refined oil products production decreased by 1.72% and 1.04% year-on-year respectively, among which gasoline up 3.04%, jet fuel up 4.28% and diesel down 5.95% over the same period last year. EBIT of the Refining segment were RMB 43.504 billion, up 183.12% over the same period last year.
Marketing and Distribution: In light of ample domestic fuel supply and strong competition in the market, the Company coordinated and optimised internal and external resources, and adjusted marketing efforts, achieving growth in both total sales volume and retail sales volume, especially in retail scale of premium products with high octane number. It further improved its product pipeline network and accelerated the building of service stations. Non-fuel business kept fast development momentum owing to synergy between fuel and non-fuel businesses. In the first three quarters, total sales volume of refined oil products was 146 million tonnes, up by 3.53% over the same period last year. Total domestic sales volume of refined oil products was 130 million tonnes, up by 2.27% year-on-year. Transaction of non-fuel business reached RMB 26.920 billion, up 40.21% when compared with the same period last year. EBIT of the Marketing and Distribution segment were RMB 25.839 billion, up 14.50% over the same period last year.
Chemicals: The Company further optimised feedstock and product mix, as well as facilities structure. It further lowered feedstock cost for ethylene, strengthened the integration among production, sales, product R&D and customer need and continuously optimised operations of manufacturing facilities, which has achieved great results. It strengthened R&D, production and marketing capabilities of new high value-added products, with performance polymer ratio reaching 59.7% and differential ratio of synthetic fibre reaching 84.8%. It also focused on improving customer services to enhance customer loyalty. At the same time, it held firm to its strategies of low inventories and customised marketing. In the first three quarters, ethylene production reached 8.115 million tonnes, down 1.91% year-on-year. Chemical sales volume was 50.46 million tonnes, up 11.19% over the same period last year. EBIT of the Chemicals segment were RMB 19.135 billion, up 8.95% over the same period last year.
Capital Expenditures: The Company focused on growth quality and profitability, strengthened the management of investment return and optimisation of investment project. Its capital expenditures were approximately RMB 24.969 billion in the first three quarters. Capital expenditures for the Exploration and Production segment were RMB 9.206 billion, mainly for Phase Two of shale gas development in Fuling, LNG terminals in Guangxi and Tianjin, and Jinan-Qingdao gas pipeline II. Captial expenditures for the Refining segment were RMB 4.995 billion, mainly for gasoline and diesel quality upgrading and refinery optimisation and revamping projects. Capital expenditures for the Marketing and Distribution segment were RMB 5.983 billion, mainly for renovation of service stations, refined oil products pipelines, oil depots and safety hazard rectification projects. Capital expenditures for the Chemical segment were RMB 3.967 billion, mainly for feedstock and product optimisation projects and coal chemical projects. Capital expenditures for corporate and others were RMB 818 million, mainly for R&D facilities and IT application projects.
Summary of Principal Operating Results for the First Three Quarters
Operating data |
Unit |
For nine-month period ended 30 September |
Changes (%) | ||
2016 |
2015 | ||||
Exploration and production | |||||
Oil and gas production1 |
million boe |
322.29 |
350.82 |
(8.13) | |
Crude oil production |
million barrels |
229.36 |
262.38 |
(12.58) | |
China |
million barrels |
191.26 |
222.42 |
(14.01) | |
Overseas |
million barrels |
38.10 |
39.96 |
(4.65) | |
Natural gas production |
billion cubic feet |
557.15 |
530.14 |
5.09 | |
Realised crude oil price |
USD/barrel |
35.44 |
48.91 |
(27.54) | |
Realised natural gas price |
USD/thousand cubic feet |
5.48 |
7.12 |
(23.03) | |
Refining2 | |||||
Refinery throughput |
million tonnes |
175.25 |
178.32 |
(1.72) | |
Gasoline, diesel and kerosene production |
million tonnes |
111.02 |
112.19 |
(1.04) | |
Gasoline |
million tonnes |
42.09 |
40.85 |
3.04 | |
Diesel |
million tonnes |
50.15 |
53.32 |
(5.95) | |
Kerosene |
million tonnes |
18.78 |
18.01 |
4.28 | |
Light chemical feedstock |
million tonnes |
28.45 |
29.40 |
(3.23) | |
Light products yield |
% |
76.35 |
76.62 |
(0.27) percentage points | |
Refining yield |
% |
94.47 |
94.78 |
(0.31) percentage points | |
Marketing and Distribution | |||||
Total sales of refined oil products |
million tonnes |
145.72 |
140.75 |
3.53 | |
Total domestic sales volume of refined oil products |
million tonnes |
129.58 |
126.71 |
2.27 | |
Retail |
million tonnes |
89.79 |
88.19 |
1.81 | |
Direct sales & Wholesale |
million tonnes |
39.79 |
38.52 |
3.30 | |
Total number of Sinopec-branded service stations3 |
stations |
30,721 |
30,560 |
0.53 | |
Company-operated |
stations |
30,708 |
30,547 |
0.53 | |
Annualised average throughput per station4 |
tonnes/station |
3,899 |
3,857 |
1.09 | |
Chemical2 | |||||
Ethylene |
thousand tonnes |
8,115 |
8,273 |
(1.91) | |
Synthetic resin |
thousand tonnes |
11,138 |
11,265 |
(1.13) | |
Synthetic rubber |
thousand tonnes |
619 |
668 |
(7.34) | |
Monomers and polymers for synthetic fibre |
thousand tonnes |
6,830 |
6,684 |
2.18 | |
Synthetic fibre |
thousand tonnes |
934 |
967 |
(3.41) | |
Note: |
Appendix
Principal financial data and indicators
Principal financial data and indicators prepared in accordance with the PRC Accounting Standards for Business Enterprises (ASBE) | |||
RMB million | |||
As of 30 September 2016 |
As of 31 December 2015 |
Changes from the end of the preceding year to the end of the reporting period (%) | |
Total assets |
1,413,148 |
1,447,268 |
(2.4) |
Total equity attributable to equity shareholders of the Company |
692,711 |
677,538 |
2.2 |
First Nine Months |
Changes over the same period of the preceding year (%) | ||
2016 |
2015 | ||
Net cash flow from operating activities |
131,700 |
116,239 |
13.3 |
Operating income |
1,363,945 |
1,537,956 |
(11.3) |
Net profit attributable to equity shareholders of the Company |
29,166 |
25,893 |
12.6 |
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses |
28,337 |
24,722 |
14.6 |
Weighted average return on net assets (%) |
4.26 |
4.07 |
0.19 percentage points |
Basic earnings per share (RMB) |
0.241 |
0.214 |
12.6 |
Diluted earnings per share (RMB) |
0.241 |
0.214 |
12.6 |
Extraordinary (gain)/loss items |
Q3 2016 RMB million |
First Nine Months in 2016 RMB million |
Loss on disposal of non-current assets |
112 |
105 |
Donations |
16 |
64 |
Gain on holding and disposal of various investments |
371 |
(471) |
Other extraordinary income and expenses, net |
(398) |
(1,007) |
Subtotal |
101 |
(1,309) |
Tax effect |
8 |
276 |
Total |
109 |
(1,033) |
Equity shareholders of the Company |
131 |
(829) |
Minority interests |
(22) |
(204) |
Principal financial data and indicators prepared in accordance with International Financial Reporting standards (IFRS) | |||
RMB million | |||
As of 30 September 2016 |
As of 31 December 2015 |
Changes from the end of the preceding year to the end of the reporting period (%) | |
Total assets |
1,413,148 |
1,447,268 |
(2.4) |
Equity attributable to owners of the Company |
691,447 |
676,197 |
2.3 |
First Nine Months |
Changes over the same period of the preceding year (%) | ||
2016 |
2015 | ||
Net cash generated from operating activities |
131,700 |
116,239 |
13.3 |
Operating profit |
51,430 |
49,376 |
4.2 |
Net profit attributable to equity shareholders of the Company |
30,107 |
27,075 |
11.2 |
Basic earnings per share (RMB) |
0.249 |
0.224 |
11.2 |
Diluted earnings per share (RMB) |
0.249 |
0.224 |
11.2 |
Return on net assets (%) |
4.35 |
4.00 |
0.35 percentage points |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: |
Media Inquiries: |
Beijing |
|
Tel: (86 10) 5996 0028 |
Tel: (86 10) 5996 0028 |
Fax: (86 10) 5996 0386 |
Fax: (86 10) 5996 0386 |
Email: ir@sinopec.com |
Email: ir@sinopec.com |
Hong Kong |
|
Tel: (852) 2824 2638 |
Tel: (852) 2522 1838 |
Fax: (852) 2824 3669 |
Fax: (852) 2521 9955 |
Email: ir@sinopechk.com |
Email: sinopec@prchina.com.hk |
SOURCE China Petroleum & Chemical Corporation
BEIJING, Aug. 28, 2016 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its interim results for the six months ended 30 June 2016.
Financial Highlights:
Business Highlights:
The first half of 2016 saw weak global economic recovery. China's GDP grew by 6.7% year on year. The oil products pricing mechanism was further improved and the floor on refined oil price was established. Domestic apparent consumption of refined oil products was up 4.4% year on year. Gasoline and kerosene consumption remained growth momentum, while diesel consumption declined further, showing continuous divergence in the consumption mix of oil products. Domestic consumption of major chemicals continued to grow. Ethylene equivalent consumption increased by 1.7% when compared with the first half of 2015. Chemical prices dropped amid the decline in feedstock prices, but chemical products margin maintained at high levels.
Mr. Wang Yupu, Chairman of Sinopec, said, "In the first half of 2016, the Company spared no effort to expand its markets, optimise its operations, control costs, adjust asset structure and manage risks. Focusing on the growth of quality and profitability, the Company emphasised on structural adjustment, deepening reform, innovation-driven strategy and strengthening coordination of all aspects of work. Looking ahead into the second half of 2016, China's economic growth is expected to remain steady, which will drive the growth of domestic demand for refined oil products and petrochemical products. We will remain focused on implementing the development plan for 2016 through 2020—transforming the pattern of growth, adjusting asset structure, upgrading asset quality and promoting sustainable growth to achieve superior business results."
Business Review
Exploration and Production
To address the challenges of low oil prices, the Company optimised exploration and production activities in the first half of this year and achieved satisfactory results. Its continuing efforts in exploration paid off with major discoveries in the Tahe of Xingjiang Autonomous Region, Beibu Gulf of the Guangxi, and the Yin-E Basin in Inner Mongolia Autonomous Region and new nature gas findings in west Sichuan and the Erdos Basin. A strong focus was placed on the development of natural gas. Phase Two shale gas development project in Fuling Shale Gas field further facilitated its shale gas development. Production in the first half of 2016 was 218.99 million barrels of oil equivalent, of which domestic crude production was 128.38 million barrels, overseas crude production was 25.79 million barrels, and total gas production was 388.69 billion cubic feet. In production, The Company strengthened cost discipline, reduced high-cost oil production, and increased natural gas production.
In the first half of 2016, operating revenues of the segment were RMB 52.5 billion, representing a decrease of 25.4% year on year. This was mainly due to lower sales prices of crude oil and decreased city-gate price of natural gas which was adjusted by the Chinese government in November 2015. In the first half of 2016, the oil and gas lifting cost was RMB 744 per tonne, representing a decrease of 3.6% year on year mainly due to the Company's strict control over costs and expenses.
Exploration and Production: Summary of Operations | |||
Six-month period ended 30 June |
Changes | ||
2016 |
2015 |
(%) | |
Oil and gas production (mmboe) |
218.99 |
232.95 |
(5.99) |
Crude oil production (mmbbls) |
154.17 |
174.07 |
(11.43) |
China |
128.38 |
147.47 |
(12.95) |
Overseas |
25.79 |
26.60 |
(3.05) |
Natural gas production (bcf) |
388.69 |
353.26 |
10.03 |
Refining
In the first half of this year, the Company adjusted its product mix in response to sharp increase of throughput from independent refineries and ample market supply. The Company further optimised its oil product mix by increasing the production of gasoline, kerosene and light chemical feedstock and decreasing the ratio between diesel and gasoline, reduced its crude purchasing costs, moderately increased refined oil products export and pressed ahead with oil products standards upgrading. Centralized marketing of the lubricant, LPG and asphalt businesses helped enhance the profitability of those products. In the first half of 2016, the Company processed 116 million tonnes of crude oil and produced 73.26 million tonnes of refined oil products, with production of gasoline and kerosene up by 3.74% and 3.36%, respectively, from levels in the first half of 2015.
In the first half of 2016, operating revenues of the segment were RMB 397.0 billion, representing a decrease of 18.3% year on year. This was mainly attributable to sharply decreased prices of products.
In the first half of 2016, the refining margin (defined as sales revenues less crude oil and refining feedstock costs and taxes other than income tax, divided by the throughput of crude oil and refining feedstock) was RMB 514.4 per tonne, representing an increase of 47.9% year on year. The change was mainly attributable to refining segment's efforts in advancing oil products quality upgrading, optimising product mix, increasing high-value-added products yield and expanding the market to increase the profitability of other refined oil products. In the first half of 2016, the segment realised an operating profit of RMB 32.6 billion, representing an increase of RMB 17.3 billion year on year.
Refining: Summary of Operations | |||
Six-month period ended 30 |
Changes | ||
2016 |
2015 |
(%) | |
Refinery throughput (million tonnes) |
115.90 |
118.89 |
(2.51) |
Gasoline, diesel and kerosene production |
73.26 |
74.75 |
(1.99) |
Gasoline (million tonnes) |
28.03 |
27.02 |
3.74 |
Diesel (million tonnes) |
32.93 |
35.82 |
(8.07) |
Kerosene (million tonnes) |
12.30 |
11.90 |
3.36 |
Light chemical feedstock production |
19.37 |
19.07 |
1.57 |
Light yield (%) |
76.61 |
76.69 |
(0.08) percentage |
Refining yield (%) |
94.75 |
94.98 |
(0.23) percentage |
Note: Includes 100% of production of domestic joint ventures.
Marketing and Distribution
In the first half of 2016, the Company coordinated and optimised resources and took full advantage of the synergy between its fuel and non-fuel businesses, achieving growth in both total business volume and retail sales despite ample fuel supply and strong competition in the market. In addition, the Company adjusted marketing efforts by increasing the retailing of premium products with high-octane numbers. The Company further improved its product pipeline network, accelerated the building of service stations and optimised marketing network. The total sales volume of refined oil products in the first half of 2016 was up by 4.5% from the corresponding period last year to 97.17 million tonnes, of which domestic sales accounted for 86.51 million tonnes, up by 3.1%. Non-fuel business transaction was up by 43% from the first half of 2015 to 18.5 billion yuan owing to Internet+ marketing promotions and other measures.
In the first half of 2016, the operating revenues of the segment were RMB 501.0 billion, decreased by 11.4 % year on year. This was mainly due to declined prices of gasoline and diesel. The Company has actively expanded the sales volume, which has partially offset the effect of the declined prices. In the first half of 2016, due to higher retail ratio of high-value-added and high octane number oil products and more external resources, the margin of oil product sales was increased. The segment's operating profit was RMB 15.8 billion, representing an increase of RMB 600 million year on year.
Marketing and Distribution: Summary of Operations | |||
Six-month period ended 30 June |
Changes | ||
2016 |
2015 |
(%) | |
Total sales volume of refined oil products |
97.17 |
92.97 |
4.52 |
Total domestic sales volume of refined oil |
86.51 |
83.92 |
3.09 |
Retail (million tonnes) |
59.65 |
58.19 |
2.51 |
Direct sales and Wholesale (million |
26.86 |
25.73 |
4.39 |
Annualised average throughput per station |
3,889 |
3,816 |
1.91 |
As of 30 June |
As of 31 |
Change from | |
Total number of Sinopec-branded service |
30,688 |
30,560 |
0.42 |
Company-operated |
30,675 |
30,547 |
0.42 |
Chemicals
In the first half of this year, the Company continued to adjust the structure of its feedstock, products and facilities to address market changes and maximize profit. The Company further lowered the feedstock cost for ethylene, strengthened the integration among production, sales, product R&D and customer needs, and continuously optimised operations of its manufacturing facilities, which has achieved great results. Ethylene production for the first half of 2016 was 5.478 million tonnes, up by 0.38% from the corresponding period last year. The Company strengthened the R&D, production and marketing capability of new higher value products, with the specialty performance polymer reaching 58% and the differential ratio of synthetic fiber reaching 83.2%. At the same time, the Company held firm to its strategies of low inventories and differentiated marketing. In the first half of 2016, total chemicals sales volume increased by 8.3% from the corresponding period last year to 32.82 million tonnes.
In the first half of 2016, operating revenues of the chemicals segment were RMB 149.2 billion, representing a decrease of 11.0% year on year, which was mainly due to declined chemical products prices year on year. In the first half of 2016, the operating expenses of the segment were RMB 139.5 billion, representing a decrease of 11.5% year on year, which was mainly due to continuous optimisition of raw materials mix and efforts to reduce production costs. The segment's operating profit in the first half of 2016 was RMB 9.7 billion, representing a decrease of 3.8% year on year.
Major Chemical Products: Summary of Operations Unit of production: 1,000 tonne | ||||
Six-month period ended 30 June |
Changes | |||
2015 |
2014 |
(%) | ||
Ethylene |
5,478 |
5,457 |
0.38 | |
Synthetic resin |
7,500 |
7,476 |
0.32 | |
Synthetic fiber monomer and polymer |
4,672 |
4,322 |
8.10 | |
Synthetic fiber |
637 |
638 |
(0.16) | |
Synthetic rubber |
411 |
453 |
(9.27) |
Note: Includes 100% of production of domestic joint ventures.
Health, Safety and the Environment
Work safety has always been at the core of its operations and the Company continued to strengthen its safety management in the first half of 2016. The Company conducted special work to reduce safety risks in its oil and gas pipelines and tank farms, put protective measures in place to cope with strong rainfall and bad weather, and realised safe production on general.
The Company strengthened its green and low-carbon strategy by intensifying its work in environmental protection, energy conservation and emissions control. The Company continued to advance its energy performance contract model and energy management system, defined the projects of its Energy Efficiency Doubling initiative, and completed its Clear Water, Blue Sky program. In the first half of 2016, energy intensity was down by 0.69%, chemical oxygen demand in discharged waste water was down by 7.88%, ammoniac nitrogen emissions were down by 3.96%, sulfur dioxide emissions were down by 6.88%, and NOx emissions were down by 3.02% from levels in the corresponding period last year, and all hazardous chemicals, discharged water, gas, and solid waste were properly treated.
Capital Expenditures
To address the changing business environment in the first half of 2016, the Company improved the decision-making mechanism for investments and focused on managing investment return and increasing growth quality and efficiency. Total capital expenditures were 13.474 billion yuan. Capital expenditures for the exploration and production segment were 5.168 billion yuan, mainly for Phase Two of shale gas development in Fuling, the LNG terminals in Guangxi and Tianjin, and Phase Two of the Jinan-Qingdao gas pipeline. Capital expenditures for the refining segment were 2.774 billion yuan, mainly for gasoline and diesel quality upgrading and refinery optimisation projects. Capital expenditures for the marketing and distribution segment were 2.61 billion yuan, mainly for renovations of service stations, refined oil products pipelines and depots and safety projects. Capital expenditures for the chemicals segment were 2.44 billion yuan, mainly for feedstock and product optimization projects and coal chemical projects of East Ningxia project and Zhongtianhechuang project. Capital expenditures for corporate and others were 482 million yuan, mainly for R&D facilities and IT application projects.
Business Prospects
China's economic growth is expected to be steady in the second half of 2016, which will drive the growth of domestic demand for refined oil products and petrochemical product. The consumption mix of oil products shall continue to change, and demand for chemical products shall be gradually going for more high-end products. Yet over-supply in the international oil market is likely to persist, and international oil prices will stay at a low level. The competitiveness of naphtha based chemicals as feedstock will remain strong. Against this background, The Company will spare no effort to expand its markets, optimise its operations, control costs, adjust asset structure and manage risks with the following focuses in each business segment:
The Company will maintain the level of input intensity in exploration and optimise planning of its exploration program to achieve high efficiency. For oil products, the Company will strengthen phased exploration and reservoir evaluation for oil projects to increase the quality of new projects and apply refined management over existing projects. For natural gas, the Company will speed up key capacity building projects, optimise production and sales, intensify reservoir assessment in west Sichuan and Northeast China, and press ahead with development of Fuling Shale Gas field. In the second half of 2016, the Company plan to produce 147 million barrels of crude oil, of which domestic production will account for 125 million barrels and overseas production will account for 22 million barrels. The Company plan to produce 421.2 billion cubic feet of natural gas during the period.
The Company will base its refining facility utilisation rates on market conditions, allocate crude resources and refining throughput according to profit margins and regional conditions, optimise its product slate to increase high-value-added products, and emphasise technology R&D. The Company will continue to lower the diesel-to-gasoline ratio, upgrade the refiled oil products'' quality, increase clean fuel production and expand the sales volume of lubricants, LPG and asphalt. The Company plan to process 120 million tonnes of crude in the second half of the year.
The Company will focus on both sales volume and profits in marketing and distribution business, with profits as priority goals of operation. The Company will redouble efforts to expand its markets, increase its retail volume, optimise its sales structure, develop its automotive gas business by building and operating more CNG/LNG stations, and promote its non-fuel businesses by improving operations of convenience stores, adding new and specialty products and innovating its business model, and shall facilitate its transformation into a modern, comprehensive service provider. The Company plan to sell 84 million tonnes of refined oil products in the domestic market in the second half of the year.
The Company will further optimise its chemical feedstock structure to further reduce cost of feedstock, and operations and intensify profit analysis and evaluation of its product value chain and facilities. Contribution to profit margins will determine the slate of production and utilisation of facilities, and the Company will strengthen optimisation of product mix, produce more new and high-value-added products in accordance with market demand. The Company will strengthen the development and application of new products, and upgrade three major synthetic materials. The Company will also make further improvements to the marketing network and customer services by providing its customers with value-added services and integrated solutions. The Company plan to produce 5.56 million tonnes of ethylene in the second half of 2016.
In the second half of the year, The Company will remain focused on implementing the development plan for 2016 through 2020—transforming the pattern of growth, adjusting asset structure, upgrading asset quality and promoting sustainable growth to achieve superior business results.
Appendix: Key financial data and indicators
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE
Principal accounting data | |||
Items |
Six-month periods ended 30 June |
Changes over the same | |
2016 RMB million |
2015 RMB million | ||
Operating income |
879,220 |
1,041,131 |
(15.6) |
Net profit attributable to equity |
19,250 |
24,456 |
(21.3) |
Net profit attributable to equity after deducting extraordinary gain/loss |
18,290 |
23,431 |
(21.9) |
Net cash flows from operating activities |
76,112 |
67,095 |
13.4 |
At 30 June 2016 RMB million |
At 31 December 2015 RMB million |
Change from the | |
Total equity attributable to equity |
692,934 |
677,538 |
2.3 |
Total assets |
1,432,624 |
1,447,268 |
(1.0) |
Principal financial indicators | |||
Items |
Six-month periods ended 30 June |
Changes over the same | |
2016 RMB |
2015 RMB | ||
Basic earnings per share |
0.159 |
0.203 |
(21.7) |
Diluted earnings per share |
0.159 |
0.203 |
(21.7) |
Basic earnings per share after deducting |
0.151 |
0.194 |
(22.2) |
Weighted average return on net assets (%) |
2.81 |
3.80 |
(0.99) percentage |
Weighted average return on net assets |
2.67 |
3.65 |
(0.98) percentage |
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS
Principal accounting data | |||
Items |
Six-month periods ended 30 June |
Changes over the same | |
2016 RMB million |
2015 RMB million | ||
Operating Profit |
35,108 |
40,496 |
(13.3) |
Net profit attributable to owners of the |
19,919 |
25,423 |
(21.6) |
Net cash generated from operating |
76,112 |
67,095 |
13.4 |
At 30 June 2016 RMB million |
At 31 December 2015 RMB million |
Change from the | |
Equity attributable to owners of the |
691,642 |
676,197 |
2.3 |
Total assets |
1,432,624 |
1,447,268 |
(1.0) |
Principal financial indicators | |||
Items |
Six-month periods ended 30 June |
Changes over the same | |
2016 RMB |
2015 RMB | ||
Basic earnings per share |
0.165 |
0.211 |
(21.8) |
Diluted earnings per share |
0.165 |
0.211 |
(21.8) |
Return on capital employed (%) |
3.18 |
3.52 |
(0.34) percentage |
The following table sets forth the operating revenues, operating expenses and operating profit/(loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between the first half of 2016 and the first half of 2015.
Six-month periods ended 30 June |
Changes | ||
2016 |
2015 | ||
RMB million |
(%) | ||
Exploration and Production Segment |
|||
Operating revenues |
52,509 |
70,401 |
(25.4) |
Operating expenses |
74,438 |
72,227 |
3.1 |
Operating (loss)/profit |
(21,929) |
(1,826) |
1,100.9 |
Refining Segment |
|||
Operating revenues |
396,969 |
485,735 |
(18.3) |
Operating expenses |
364,381 |
470,415 |
(22.5) |
Operating (loss)/profit |
32,588 |
15,320 |
112.7 |
Marketing and Distribution Segment |
|||
Operating revenues |
500,969 |
565,638 |
(11.4) |
Operating expenses |
485,192 |
550,450 |
(11.9) |
Operating (loss)/profit |
15,777 |
15,188 |
3.9 |
Chemicals Segment |
|||
Operating revenues |
149,186 |
167,644 |
(11.0) |
Operating expenses |
139,508 |
157,588 |
(11.5) |
Operating (loss)/profit |
9,678 |
10,056 |
(3.8) |
Corporate and others |
|||
Operating revenues |
312,816 |
415,790 |
(24.8) |
Operating expenses |
312,394 |
415,014 |
(24.7) |
Operating (loss)/profit |
422 |
776 |
(45.6) |
Elimination of inter-segment profit/(loss) |
(1,428) |
982 |
- |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: Media Inquiries:
Beijing
Tel:(86 10) 5996 0028 Tel:(86 10) 5996 0028
Fax:(86 10) 5996 0386 Fax:(8610) 5996 0386
Email:ir@sinopec.com Email:ir@sinopec.com
Hong Kong
Tel:(852) 2824 2638 Tel:(852) 2522 1838
Fax:(852) 2824 3669 Fax:(852) 2521 9955
Email:ir@sinopechk.com Email:sinopec@prchina.com.hk
SOURCE China Petroleum & Chemical Corporation
BEIJING, April 28, 2016 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or "the Company") (HKEX: 386; CH: 600028; NYSE: SNP) announced that it has filed its 2015 Annual Report on Form 20-F with the United States Securities and Exchange Commission ("SEC").
The 2015 Annual Report is posted on the Company website at www.sinopec.com and can also be accessed electronically at www.sec.gov. Upon request, the Company will also deliver free of charge within a reasonable time a hard copy of its 2015 Annual Report, including its complete audited financial statements. To request a hard copy, please contact the Company's Investor Relations team by telephone at +86 10 5996 0028, by e-mail at ir@sinopec.com or by written request to Board Secretariat at No. 22 Chaoyangmen North Street, Chaoyang District, Beijing 100728 Re: 2015 Annual Report.
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Investor Inquiries:
Beijing
Tel: (8610) 5996 0028
Fax: (8610) 5996 0386
Email: ir@sinopec.com
Hong Kong
Tel: (852) 2824 2638
Fax: (852) 2824 3669
Email: ir@sinopechk.com
Media Inquiries:
Hong Kong
Tel: (852) 2522 1838
Fax: (852) 2521 9955
Email: sinopec@prchina.com.hk
SOURCE China Petroleum & Chemical Corporation
BEIJING, April 28, 2016 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company")(HKEX: 386; SSE: 600028; NYSE: SNP) today announced its unaudited results for the three months ended 31 March 2016.
Financial Highlights:
Business Review:
In the first quarter of 2016, focusing on the growth of quality and profitability, the Company intensified its evaluation of macro-economy and market trends and actively responded to these changes. The Company emphasised on reform and innovation, stringent management and tight coordination of all aspects of work.
Exploration and Production:
Through projects optimization and implementation of a flexible investment decision-making mechanism in response to oil price fluctuations, the Company reduced its high-cost oil production. In exploration, the Company actively carried forward high-efficiency exploration activities, making a number of discoveries in Sichuan Basin, Ordos Basin, and Central Tahe Basin. In terms of development, the Company achieved steady progress in development of Fuling shale gas field (phase II), optimised development programs in mature oilfields and increased development in frontier acreages. In the first quarter, the oil and gas production of the Company was 114.7 million barrels of oil equivalent, declined by 2.7%, out of which crude oil output down by 9.3% while natural gas up by 16.7%, compared with the same period last year. Impacted by the sustained low crude oil prices, Exploration and Production Segment had an operating loss of RMB 12.53 billion.
Refining:
The Company adjusted the product mix in response to market demand by increasing production of gasoline and kerosene, maintained safe and stable refinery operations and upgraded refined oil products quality as scheduled. The Company optimised resource allocation, controlled costs and took advantage of its strong economies of scale. By tapping well-established advantages in specialisation, the Company improved its profit margins in LPG, etc. In the first quarter, refinery throughput decreased by 2.4% and refined oil products production dropped by 1.4%, among which gasoline up by 4.7%, jet fuel up by 4.5% and diesel down by 8.0% over the same period last year. Benefited from product mix optimisation and the refined oil product pricing mechanism improvement, Refining Segment had an operating profit of RMB 13.44 billion, a reversal from the loss-making situation in the same period last year.
Marketing and Distribution:
In response to the changes in supply and demand of refined oil products, the Company optimised resource allocation and adjusted its marketing strategies and promoted the sales of high-octane gasoline and high-value-added products. In the transformation from a fuel supplier to a comprehensive service provider, the Company optimised marketing network and reinforced mutual promotion between fuel and non-fuel businesses. As a result, total retail volume and throughput per station sustained growth despite of intense market competition. In the first quarter, total sales volume of refined oil products was 47.21 million tonnes, up by 1.6% over the same period last year. Total domestic sales volume of refined oil products was 43.29 million tonnes, up by 3.0%, of which retail volume reached 29.66 million tonnes, up by 2.6% over the same period last year. Transaction of non-fuel business reached RMB 8.91 billion, up by 41.4% compared with the same period last year. The operating profit of Marketing and Distribution Segment was RMB 7.69 billion, up by 45.6% compared with the same period last year.
Chemicals:
The Company fine-tuned its feedstock mix to lower costs and enhanced the operations of its production facilities by adjusting utilisation rates based on marginal profitability, while keeping sustained safe and stable operations. The Company strengthened the links among research and development, production, marketing and sales of new products, and increased production of high-value-added products tailored to market demands. In the first quarter, ethylene production reached 2.82 million tonnes, up by 2.0% and chemical sales volume was 15.62 million tonnes, up by 6.7% over the same period last year. Benefited from feedstock mix and product slate adjustment, decreased feedstock costs and upgraded competitiveness of naphtha-based chemicals, the operating profit of Chemicals Segment was RMB 4.58 billion, up by 49.3% compared with the same period last year.
Capital expenditure:
The Company's capital expenditures were RMB 5.53 billion in the first quarter. Capital expenditures for exploration and production segment were RMB 1.34 billion, mainly for development in Fuling shale gas field, construction of LNG terminals in Guangxi and Tianjin, and construction of long-distance gas pipelines such as the Jinan-Qingdao gas pipeline (phase II), as well as development in overseas projects. Capital expenditures for refining segment were RMB 1.40 billion, mainly for gasoline and diesel quality upgrading projects and refinery revamping. Capital expenditures for marketing and distribution segment were RMB 1.23 billion, mainly for revamping service stations and building refined oil product pipelines, oil depots and storage facilities, as well as for hazard rectification. Capital expenditures for chemicals segment were RMB 1.53 billion, mainly for coal chemical projects, comprehensive utilisation of resources project and auxiliary facilities construction project.
Summary of Principal Operating Results for the First Quarter
Operating data |
Unit |
For three-month period ended 31 March |
Changes (%) | ||
2016 |
2015 | ||||
Exploration and production | |||||
Oil and gas production1 |
million boe |
114.68 |
117.82 |
(2.67) | |
Crude oil production |
million barrels |
79.42 |
87.55 |
(9.29) | |
China |
million barrels |
66.35 |
74.01 |
(10.35) | |
Overseas |
million barrels |
13.07 |
13.54 |
(3.47) | |
Natural gas production |
billion cubic feet |
211.36 |
181.06 |
16.73 | |
Realized crude oil price |
USD/barrel |
27.06 |
46.22 |
(41.45) | |
Realized natural gas price |
USD/thousand cubic feet |
5.47 |
7.94 |
(31.11) | |
Refining2 | |||||
Refinery throughput |
million tonnes |
57.18 |
58.58 |
(2.39) | |
Gasoline, diesel and kerosene production |
million tonnes |
36.33 |
36.85 |
(1.41) | |
Gasoline |
million tonnes |
13.92 |
13.29 |
4.74 | |
Diesel |
million tonnes |
16.32 |
17.74 |
(8.00) | |
Kerosene incl. jet fuel |
million tonnes |
6.08 |
5.82 |
4.47 | |
Light chemical feedstock |
million tonnes |
9.74 |
9.43 |
3.29 | |
Light product yield |
% |
77.05 |
76.68 |
0.37 percentage points | |
Refining yield |
% |
94.93 |
94.69 |
0.24 percentage points | |
Marketing and Distribution | |||||
Total sales of refined oil products |
million tonnes |
47.21 |
46.49 |
1.55 | |
Total domestic sales of refined oil products |
million tonnes |
43.29 |
42.05 |
2.95 | |
Retail |
million tonnes |
29.66 |
28.90 |
2.63 | |
Direct sales & Distribution |
million tonnes |
13.63 |
13.15 |
3.65 | |
Total number of Sinopec-branded service stations3 |
stations |
30,636 |
30,560 |
0.25 | |
Company-operated |
stations |
30,623 |
30,547 |
0.25 | |
Throughput per station4 |
tonnes |
3,879 |
3,786 |
2.46 | |
Chemicals2 | |||||
Ethylene |
thousand tonnes |
2,823 |
2,768 |
1.99 | |
Synthetic resin |
thousand tonnes |
3,840 |
3,786 |
1.43 | |
Synthetic rubber |
thousand tonnes |
205 |
213 |
(3.76) | |
Monomers and polymers for synthetic fiber |
thousand tonnes |
2,328 |
2,128 |
9.40 | |
Synthetic fiber |
thousand tonnes |
311 |
311 |
0 | |
Note: 1. Conversion: for domestic production of crude oil, 1 tonne = 7.1 barrels; for overseas production of crude oil, 1 tonne=7.21 barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet. 2. Including 100% production of joint ventures. 3. The number of service stations in 2015 was the number as of 31 December 2015. 4. Throughput per station was annualized. |
Appendix
Principal financial data and indicators
Principal financial data and indicators prepared in accordance with China Accounting Standards for Business Enterprises (ASBE)
Units: RMB million | |||
As of 31 March 2016 |
As of 31 December 2015 |
Changes from the end of the preceding year to the end of the reporting period (%) | |
Total assets |
1,397,688 |
1,443,129 |
(3.1) |
Total equity attributable to equity shareholders of the Company |
686,286 |
675,370 |
1.6 |
Three months |
Changes over the same period of the preceding year (%) | ||
2016 |
2015 | ||
Net cash flow from operating activities |
34,348 |
6,682 |
414.0 |
Operating income |
413,790 |
478,241 |
(13.5) |
Net profit attributable to equity shareholders of the Company |
6,185 |
1,685 |
267.1 |
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses |
6,404 |
1,336 |
379.3 |
Weighted average return on net assets (%) |
0.91 |
0.27 |
0.64 percentage points |
Basic earnings per share (RMB) |
0.051 |
0.014 |
264.3 |
Diluted earnings per share (RMB) |
0.051 |
0.014 |
264.3 |
Extraordinary gain/loss items |
During the reporting period |
(gains)/losses(RMB million) | |
Net loss on disposal of non-current assets |
5 |
Donations |
6 |
Government grants |
(229) |
Loss on holding and disposal of various investments |
155 |
Other extraordinary income and expenses, net |
327 |
Subtotal |
264 |
Tax effect |
(31) |
Total |
233 |
Equity shareholders of the Company |
219 |
Minority interests |
14 |
Principal financial data and indicators prepared in accordance with International Financial Reporting standards (IFRS)
Units: RMB million | |||
As of 31 March 2016 |
As of 31 December 2015 |
Changes from the end of the preceding year to the end of the reporting period (%) | |
Total assets |
1,397,688 |
1,443,129 |
(3.1) |
Total equity attributable to owners of the Company |
684,972 |
674,029 |
1.6 |
Three months |
Changes over the same period of the preceding year (%) | ||
2016 |
2015 | ||
Net cash generated from operating activities |
34,348 |
6,682 |
414.0 |
Operating profit |
13,057 |
5,153 |
153.4 |
Net profit attributable to owners of the Company |
6,663 |
2,172 |
206.8 |
Basic earnings per share (RMB) |
0.055 |
0.018 |
205.6 |
Diluted earnings per share (RMB) |
0.055 |
0.018 |
205.6 |
Return on net assets (%) |
0.97 |
0.32 |
0.65 percentage points |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and ransportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries: |
Media Inquiries: |
Beijing |
|
Tel:(86 10) 5996 0028 |
|
Fax:(86 10) 5996 0386 |
|
Email:ir@sinopec.com |
|
Hong Kong |
|
Tel:(852) 2824 2638 |
Tel:(852) 2522 1838 |
Fax:(852) 2824 3669 |
Fax:(852) 2521 9955 |
Email:ir@sinopechk.com |
Email:sinopec@prchina.com.hk |
SOURCE China Petroleum & Chemical Corporation
BEIJING, March 29, 2016 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2015.
Financial Highlights:
Business Highlights:
In 2015, the global economic recovery remained weak, and Chinese economy maintained steady growth with GDP up by 6.9%. International oil prices were under downward pressure while fluctuating to new lows. Growth of oil products demand slowed, yet demand for chemicals was stable. Meanwhile, domestic environmental requirements became more stringent, the Company intensified its evaluation of the macro economy and market trends so that it actively respond to these changes. With a focus on growth quality and efficiency, the Company emphasized on reform and innovation, stringent management and tight coordination of all aspects of our work.
Mr. Wang Yupu, Chairman of Sinopec said, " During the year, despite the extremely challenging environment for production and operation, the Company managed to make progress on many fronts as we fully leverage our advantages in business integration, take effective measures to broaden source of income while cutting cost, and continue to drive structural adjustment and scientific innovation. The Company practiced its belief that corporate social responsibility creates value and has been actively involved in the philanthropic projects, leading Chinese enterprises to be practitioners of green and low-carbon development. In the first year of China's national 'Five-Year Plan', the Company will be implementing five growth strategies focusing on value-oriented, innovation-driven, integrated resource management, open & cooperative, as well as green & low-carbon development. The Company will focus on improving quality and efficiency, speeding up the economic transformation and structure adjustment, collectively driving the quality, efficient and sustainable development of the Company. "
Business Review
Exploration and Production
In exploration, we actively carried forward high-efficiency exploration activities, making a number of new discoveries in Beibu Gulf of the South China Sea, the Sichuan Basin, the Ordos Basin, and the Central Tahe Basin. In development, we completed building the production capacity of the Fuling shale gas field at 5 billion cubic meters per year, optimised development programs in mature oilfields and increased the production capacity in frontier acreages. In 2015, our production dropped by 1.7% to 471.91 million barrels of oil equivalent, with domestic crude oil production down by 4.7% and overseas production up by 6.6%. Natural gas production rose by 2.6%. Impacted by low oil prices, proved reserves of crude dropped over 2014 while proved reserves of natural gas increased by 12.3% mainly driven by Fuling shale gas reserves.
In 2015, the operating revenues of this segment were RMB 138.7 billion, representing a decrease of 39.1% over 2014. Impacted by the significant decrease in oil prices, upstream segments recorded operating loss RMB 17.4 billion.
The oil and gas lifting cost was USD 17.62 per barrel, representing a year-on-year decrease of 4.3%. This was mainly attributable to the strict cost cutting efforts put forward by the Company while decreasing production volume.
Exploration and Production: Summary of Operations | |||
Twelve-month periods ended 31 December |
Changes | ||
2015 |
2014 |
% | |
Oil and gas production (mmboe) |
471.91 |
480.22 |
(1.7) |
Crude oil production (mmbbls) |
349.47 |
360.73 |
(3.1) |
China |
296.34 |
310.8 |
(4.7) |
Overseas |
53.13 |
49.86 |
6.6 |
Natural gas production (bcf) |
734.79 |
716.35 |
2.6 |
Refining
In 2015, the Company adjusted the product mix in response to market demand by increasing production of gasoline and kerosene, maintained safe and reliable refinery operations and further upgraded oil products quality as scheduled. We optimised resource allocation, controlled costs and took advantage of our strong economies of scale. By tapping our well-established advantages in specialization, we improved our margins in lubricants, LPG and asphalt. In 2015, we processed
236 million tonnes of crude oil, up by 0.5% from the previous year, and produced 148 million tonnes of refined oil products, up by 1.5%.
In 2015, the operating revenues of this segment were RMB 926.6 billion, representing a decrease of 27.2% over 2014. This was mainly attributable to the decreased price of refined oil products. In 2015, the operating profit of the segment totaled RMB 21.0 billion, representing an increase of RMB 22.9 billion as compared with 2014. This was mainly due to domestic pricing mechanism of refined oil products implemented timely, tapping the Company's well established advantages in scale of refining, as well as increasing production of oil products and high-value-added products for which demand was strong.
In 2015, refining gross margin was RMB 318.1 per tonne, representing an increase of RMB 105.1 per tonne compared with 2014. In 2015, refining gross margin was USD 6.95 per barrel, representing a year-on-year increase of 47.2%. The unit refining cash operating cost remained flat despite of investments in refined oil products quality upgrading.
Refining: Summary of Operations | |||
Twelve-month periods ended 31 December |
Changes | ||
2015 |
2014 |
(%) | |
Refinery throughput (million tonnes) |
236.49 |
235.38 |
0.5 |
Gasoline, diesel and kerosene |
148.38 |
146.23 |
1.5 |
Gasoline (million tonnes) |
53.98 |
51.22 |
5.4 |
Diesel (million tonnes) |
70.05 |
74.26 |
(5.7) |
Kerosene (million tonnes) |
24.35 |
20.75 |
17.4 |
Light chemical feedstock production |
38.81 |
39.17 |
(0.9) |
Light yield (%) |
76.50 |
76.52 |
(0.02) percentage points |
Refining yield (%) |
94.75 |
94.66 |
0.09 percentage points |
Note: Includes 100% of production of joint ventures. |
Marketing and Distribution
In 2015, in light of the new pattern of supply and demand balance for oil products, we adjusted our marketing strategies and promoted the sales of high-octane gasoline and high-value-added products. We optimised oil products pipeline layout and marketing network, accelerated the construction of compressed natural gas service stations. In its transformation from a fuel supplier to an comprehensive service provider, the marketing segment unleashed great potential in complementary fuel and non-fuel businesses. As a result, total retail volume and per-station pumped volume sustained growth despite intense market competition. In 2015, the total sales volume of refined oil products was 189 million tonnes, of which domestic sales accounted for 171 million tonnes. In the meantime, our non-fuel businesses achieved stronger momentum in specialization, market orientation,
Marketing scale and profitability. Nonfuel business transactions increased by 45.2% from the previous year to RMB 24.83 billion.
In 2015, the operating revenues of this segment were RMB 1,106.7 billion, a decrease of 25.1% over 2014. The operating profit of this segment was RMB 28.9 billion, representing a decrease of 2.0% compared with 2014.
Marketing and Distribution: Summary of Operations | |||
Twelve-month periods ended 31 December |
Changes | ||
2015 |
2014 |
(%) | |
Total sales volume of refined oil products |
189.33 |
189.17 |
0.1 |
Total domestic sales volume of refined oil |
171.37 |
170.79 |
0.2 |
Retail (million tonnes) |
119.03 |
117.84 |
1.0 |
Direct sales and Wholesale (million tonnes) |
52.34 |
53.13 |
(1.5) |
Annualised average throughput per station |
3,896 |
3,858 |
1.0 |
As of 31 |
As of |
Change from | |
Total number of Sinopec-branded service |
30,560 |
30,551 |
0.03 |
Company-operated |
30,547 |
30,538 |
0.03 |
Chemicals
In 2015, we enhanced the operations of our manufacturing facilities by adjusting utilisation rates to achieve satisfactory marginal profitability while sustained safe and stable operations among principal plants. The Company finetuned its feedstock mix to lower costs, deepened the links among research and development, production, marketing and sales of new products, and maximized production of high-value-added products tailored to market demands. Ethylene output rose by 3.9% from 2014 to 11.12 million tonnes. Meanwhile, by keeping inventories at low levels and implementing a differentiated marketing strategy, our full-year chemicals sales volume increased by 3.4% to 62.87 million tonnes, with all produced chemicals sold.
In 2015, the operating revenues of the chemicals segment were RMB 326.3 billion, representing a decrease of 23.7% as compared with that of 2014, which was mainly attributable to price drop of chemical products partly offset by the volume increase of basic organic chemicals and synthetic resin. In 2015, the operating profit of this segment was RMB 19.7 billion, representing an increase of RMB 21.9 billion as compared with 2014.
In 2015, the Company actively fine-tuned its feedstock and product mix and maximized production of high-value-added products. Despite prices of feedstock and products dropped significantly, chemical unit all-in cost continuously reduced, attributable to feedstock prices decreased more than product prices and the Company's effective cost reduction efforts. Chemical product processing expenses reduced 8.53% year-on-year. Unit gross margin was RMB 133 / tonne, representing a year-on-year increase of 11.95%.
Major Chemical Products: Summary of Operations Unit of production: 1,000 tonne | |||
Twelve-month periods ended 31 |
Changes | ||
2015 |
2014 |
(%) | |
Ethylene |
11,118 |
10,698 |
3.9 |
Synthetic resin |
15,065 |
14,639 |
2.9 |
Synthetic fiber monomer and polymer |
843 |
939 |
(10.2) |
Synthetic fiber |
8,994 |
8,383 |
7.3 |
Synthetic rubber |
1,282 |
1,315 |
(2.5) |
Note: Includes 100% of production of joint ventures. |
R&D
In 2015, the Company insisted on setting innovation as the core of development, further improved the mechanism and institution of R&D, reinforced the integration of production, marketing and R&D, and gave full play to R&D for driving and supporting the growth of the Company. In our upstream business, we successfully completed building the capacity of the Fuling shale gas field to 5 billion cubic meters per year using an in-house package of exploration and development technology. In refining, we commercialised such technologies as the integrated hydrogenation-FCC process for maximising light oil products and high octane gasoline from catalytic diesel process. These technologies provided guarantees for optimising product mix and upgrading oil products quality. In chemicals, we commercialised a number of technologies and products, including the gas-liquid polyethylene process, optical-film-grade polyester performance compounds, and styrene-butyl-rubber for high-performance tyres, strongly facilitating the Company to produce high-value-added products. In 2015, we applied for a total of 5,246 patents at home and abroad, and 3,769 patents were granted. During the year, we won one top award and one second-place award for National Science and Technology Advancement, two second-place awards for Technology Invention, one National Patent Gold Award and six Awards of Excellence.
Capital Expenditures
In 2015, the Company focused on investment quality and efficiency and optimised its asset portfolio and investment projects. Total capital expenditures were RMB 112.249 billion, down by 27.4% from the previous year. Capital expenditures for the exploration and production segment were RMB 54.71 billion, mainly for development in the Fuling shale gas field (First Phase), the liquified natural gas terminal projects in Guangxi and Tianjin, and construction of long-distance gas pipelines such as the Jinan-Qingdao gas pipeline (Second Phase), as well as for overseas projects. Capital expenditures for the refining segment were RMB 15.132 billion, mainly for gasoline and diesel quality upgrading projects and refinery revamping. Capital expenditures for the marketing and distribution segment were RMB 22.115 billion, mainly for revamping service stations and building oil product pipelines, oil depots and storage facilities, as well as for safety retification and vapour recovery facilities. Capital expenditures for the chemicals segment were RMB 17.471 billion, mainly for equity acquisition in Sibur Holding, the East Ningxia and Zhongtian synergetic coal chemical projects, and the Zhenhai ethylene revamping project. Capital expenditures for the corporate and others were RMB 2.821 billion, mainly for R&D facilities and IT application projects.
Social Responsibility
The Company has been committed to sustainable development concept and continued its corporate social responsibility according to the ten principles of UN Global Compact, high corporate responsibility standard, and the green and low-carbon growth requirement in China. In 2015, while providing stable energy supply, quality products and services to the people and the society at large, the Company also strengthened its safety and risk management to ensure its stable and safe operation. The Company integrated efforts in energy conservation, emissions control and carbon reduction by vigorously implementing its energy and environmental management system, the Energy Conservation Plan, the Clear Water and Blue Sky Campaign, and its carbon assets management system. The Company cared about its staff, safeguarded employee occupational health and promoted employee career growth. The Company also strengthen is sub-contractor management, optimised biding and evaluation processing and established a supply chain HSE system, aiming to achieve synergic growth with the supply chain. The Company has been actively supporting various philanthropic projects and participated relief programs including the Lifeline Express project.
Business Prospects
Looking ahead to 2016, the world economy is expected to be weak in recovery while China's economy maintained steady growth. International oil prices are expected to fluctuate at a low level. A gradual opening up of import license for crude oil will enable more competitions in the domestic market. Quality upgrading for oil products will advance steadily and the demand pattern will be further adjusted. Growth in domestic demand for major petrochemical products will be steady. In 2016, we will focus on improving development quality and profitability. We will work hard to create market opportunities while controlling costs and risk. In the meantime, we will deepen reforms, strengthen innovation and implement rigorous management programs. We will make special efforts in the following areas:
Exploration and production: In exploration and production, we will continue to focus on investment return and maintain domestic exploration activities at a reasonable level in a bid to lower development costs. In exploration, we will reinforce risk management, optimise evaluation of projects, and focus on key projects with strong reserve potentials, thus improving the success rate of exploration. In oil development, we will press ahead with implementation of dynamic decision-making and operating mechanisms and cut low-efficiency production and high-cost enhanced oil recovery activities to optimise our production structure. In gas development, the second phase of the capacity building project for the Fuling shale gas field will be in full swing. We will advance the shale gas resource assessment in the Sichuan Basin and nearby blocks, striving for new commercial discoveries. In 2016, we plan to produce 332 million barrels of crude oil, of which 58 million barrels will be overseas production. We plan to produce 865 billion cubic feet of natural gas.
Refining: In refining, we will continue to embrace a strategy that is market-oriented and driven by profitability, increase output of products with high added value and optimal market potential, and speed the quality upgrading of oil products to ensure the supply of clean fuels. We will optimise resource allocation of crude oil, lower crude costs and adjust our production plan to ensure safe and reliable operations. We will actively enhance the marketing of lubricants, LPG and asphalt for better profits. In 2016, we plan to process 238 million tonnes of crude oil and produce 149 million tonnes of oil products.
Marketing and distribution: In marketing and distribution, we will intensify the analysis of our marketing strategy and actively respond to competition. We will take measures to optimise our sales structure, expand retail and per-station pumped volume, improve our logistics system to reduce costs and drive our non-fuel businesses by improving mechanisms to facilitate the synergy between our fuel and non-fuel businesses. China's Internet+ economy presents new opportunities for us to establish an Online-to-Offline service platform, create new business models, and advance our transformation to an integrated service provider. In 2016, we plan to sell 171 million tonnes of oil products in the domestic market.
Chemicals: In chemicals, we will continue our policy of structural adjustments, further optimise our feedstocks to lower costs and operate our facilities at reasonable utilisation rates based on market conditions and profitability. We will tighten the links among production, sales, research and client, continue to cut costs of commodity products and raise the added value of differentiated products, and increase the output of products with the greatest market acceptance and profitability. Meanwhile, we will enhance our marketing strategy, improve customer service and offer our customers products and services that cover the whole value chain. In 2016, we plan to produce 11.20 million tonnes of ethylene.
R&D: In research and development, we will continue to implement our strategy of development driven by innovation, improve and create new R&D mechanisms, and move scientific and technological achievements into production more quickly. The exploration and production segment will focus on technological breakthroughs that help us increase oil reserves and enhance conventional and unconventional exploration and development and oilfield services. In refining, we will undertake activities in such areas as heavy crude processing, the quality upgrading of oil products and adjustments to the product slate. In chemicals, we will focus on adjustments to the product mix along with R&D initiatives in basic chemicals, coal chemicals, fine chemicals, bio chemicals and synthetic materials. We also expect to make progress in energy-conserving, environmental and low-carbon technologies as well as prospective and fundamental research to improve innovation capabilities and to support and drive the sustainable growth of the Company.
Capital expenditures: In capital expenditures, we will make greater efforts to optimise our investments in line with market changes. Capital expenditures for the year are budgeted at RMB 100.4 billion, down by 10.6% from 2015, of which the exploration segment will account for RMB 47.9 billion, mainly for domestic oil and gas exploration projects, for development projects in the Fuling shale gas field (Second Phase), the Pingbei and Huangyan gas field and the Daniudi gas field, and for the first-phase pressure boosting project to transport gas from Sichuan to Eastern China. The refining segment will account for RMB 19.5 billion, mainly for revamping the Zhenjiang and Maoming refineries as well as quality upgrading for gasoline and diesel. The marketing and distribution segment will account for RMB 17.9 billion, mainly for revamping service stations, improving the pipeline network and building non-fuel business facilities that promote integrated services. The chemicals segment will account for RMB 10.8 billion, mainly for the Zhongtian synergetic coal chemical project, the Jinling propylene oxide and LPG project, and the Maoming ethylene oxide project. The corporate and other segment will account for RMB 4.3 billion, mainly for R&D and IT projects.
In 2016, the Company will leverage the opportunities arising from favorable national policies and economic growth in China to drive quality upgrading and efficiency growth. By stimulating the endogenous impetus through reform and innovation, we continuously aim for sharpened competitive edge and will speed up the transformation and structural adjustment of the Company.
Appendix: Key financial data and indicators
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE
Principal accounting data | |||
Items |
Twelve-month periods ended 31 December |
Changes over the same | |
2015 RMB million |
2014 RMB million | ||
Operating income |
2,018,883 |
2,825,914 |
(28.6) |
Net profit attributable to equity |
32,207 |
47,430 |
(32.1) |
Net profit attributable to equity after deducting extraordinary gain/loss |
28,901 |
43,238 |
(33.2) |
Net cash flows from operating activities |
165,818 |
148,347 |
11.8 |
At 31 December 2015 RMB million |
At 31 December 2014 RMB million |
Change from the | |
Total equity attributable to equity |
675,370 |
594,483 |
13.6 |
Total assets |
1,443,129 |
1,451,368 |
(0.6) |
Principal financial indicators | |||
Items |
Twelve-month periods ended 31 December |
Changes over the same | |
2015 RMB |
2014 RMB | ||
Basic earnings per share |
0.266 |
0.406 |
(34.5) |
Diluted earnings per share |
0.266 |
0.406 |
(34.5) |
Basic earnings per share after deducting |
0.239 |
0.370 |
(35.4) |
Weighted average return on net assets (%) |
5.04 |
8.14 |
(3.10) percentage |
Weighted average return on net assets |
4.52 |
7.42 |
(2.90) percentage |
Net cash flow from operating activities per |
1.372 |
1.270 |
8.0 |
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS
Principal accounting data | |||
Items |
Twelve-month periods ended 31 December |
Changes over the same | |
2015 RMB million |
2014 RMB million | ||
Operating Profit |
57,028 |
73,487 |
(22.4) |
Net profit attributable to owners of the |
32,438 |
46,466 |
(30.2) |
Net cash generated from operating |
165,818 |
148,347 |
11.8 |
At 31 December 2015 RMB million |
At 31 December 2015 RMB million |
Change from the | |
Equity attributable to owners of the Company |
674,029 |
593,041 |
13.7 |
Total assets |
1,443,129 |
1,451,368 |
(0.6) |
Principal financial indicators | |||
Items |
Twelve-month periods ended 31 December |
Changes over the same | |
2015 RMB |
2014 RMB | ||
Basic earnings per share |
0.268 |
0.398 |
(32.7) |
Diluted earnings per share |
0.268 |
0.397 |
(32.5) |
Return on capital employed (%) |
5.24 |
6.05 |
(13.4) percentage |
The following table sets forth the operating revenues, operating expenses and operating profit/(loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between the first half of 2015 and the first half of 2014.
Twelve-month periods ended 31 December |
Changes | ||
2015 |
2014 | ||
RMB million |
(%) | ||
Exploration and Production Segment |
|||
Operating revenues |
138,653 |
227,597 |
(39.1) |
Operating expenses |
156,071 |
180,540 |
(13.6) |
Operating (loss)/profit |
(17,418) |
47,057 |
- |
Refining Segment |
|||
Operating revenues |
926,616 |
1,273,095 |
(27.2) |
Operating expenses |
905,657 |
1,275,049 |
(29.0) |
Operating (loss)/profit |
20,959 |
(1,954) |
- |
Marketing and Distribution Segment |
|||
Operating revenues |
1,106,666 |
1,476,606 |
(25.1) |
Operating expenses |
1,077,811 |
1,447,157 |
(25.5) |
Operating (loss)/profit |
28,855 |
29,449 |
(2.0) |
Chemicals Segment |
|||
Operating revenues |
326,308 |
427,485 |
(23.7) |
Operating expenses |
306,626 |
429,666 |
(28.6) |
Operating (loss)/profit |
19,682 |
(2,181) |
- |
Corporate and others |
|||
Operating revenues |
783,874 |
1,310,236 |
(40.2) |
Operating expenses |
783,490 |
1,311,299 |
(40.3) |
Operating (loss)/profit |
384 |
(1,063) |
- |
Elimination of inter-segment profit/(loss) |
4,566 |
2,179 |
- |
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Beijing
Investor Inquiries: |
Media Inquiries: |
Tel:(86 10) 5996 0028 |
Tel:(86 10) 5996 0028 |
Fax:(86 10) 5996 0386 |
Fax:(8610) 5996 0386 |
Email:ir@sinopec.com |
Email:ir@sinopec.com |
Hong Kong
Investor Inquiries: |
Media Inquiries: |
Tel:(852) 2824 2638 |
Tel:(852) 2522 1838 |
Fax:(852) 2824 3669 |
Fax:(852) 2521 9955 |
Email:ir@sinopechk.com |
Email:sinopec@prchina.com.hk |
SOURCE China Petroleum & Chemical Corporation
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