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Sinopec's Net Profit Up Over 20% to RMB 61.6 Billion in 2018

2019-03-25 07:10
-Achieve Solid Development across All Four Core Business Segments; Total Cash Dividends Reaches RMB 50.8 Billion

BEIJING, March 25, 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

  • In accordance with IFRS, the Company's turnover and other operating revenues reached RMB 2.89 trillion. Profit attributable to equity shareholders of the Company was RMB 61.6 billion, up 20.2% year-on-year. Basic earnings per share were RMB 0.509.
  • In accordance with ASBE, the Company's operating profit was RMB 101.5 billion, up 16.7% year-on-year. Profit attributable to shareholders of the Company was RMB 63.1 billion, up 23.4% year-on-year. Basic earnings per share were RMB 0.521.
  • In accordance with IFRS, the Company's liability-to-asset ratio as at the end of 2018 was 46.21%, which represented a slight decrease of 0.33 percentage points compared with the end of the previous year. The Company maintained a sound financial position. Cash and cash equivalents amounted to RMB 111.9 billion as at 31 December 2018, maintaining at a healthy level.
  • In upstream, we made great efforts to enhance oil and gas exploration and production and achieved domestic crude oil reserves replacement ratio of 132%. Meanwhile, we pushed ahead with the construction of natural gas production, supply, storage and marketing system, rapidly increasing natural gas production and sales volume. Operating profit of the refining segment totaled RMB 54.8 billion; Operating profit of the chemicals segment was RMB 27.0 billion; Operating profit of the marketing and distribution segment was RMB 23.5 billion.
  • Taking into account the Company's profitability, shareholder returns and the future development, the Board of Directors proposed a final dividend of RMB 0.26 per share. Combined with the interim dividend of RMB 0.16 per share, the total dividend for the year is RMB 0.42 per share. Dividend payout ratio and dividend yield reached 82.5% and 7.4%, respectively.

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.

  • Exploration and Production segment: pressed ahead with high efficiency exploration and profit-oriented development, continuously reduced 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. 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.
  • Refining segment: continuously optimised product mix and the production volume of high-value-added products have been further increased. We proactively promoted structural adjustment and quality upgrading projects, the GB VI standard upgrading is completed successfully. Optimisation of production plans and resources allocation were carried out to reduce crude oil cost.
  • Marketing and Distribution segment: aimed to achieve a balance between sales volume and profits; brought our advantages of integrated business and distribution network into full play and confronted with fierce market competition, thus, achieved sustained growth in both total domestic sales volume and retail scale. Non-fuel business maintained rapid growth.
  • Chemicals segment: adhered to the development philosophy of "basic plus high-end" to enhance effective supply; intensified its efforts to enhance the efficiency of the integration among production, marketing, R&D, and application. The ratio of high-value-added synthetic products continued to increase. Total chemical sales volume achieved robust growth.

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
December

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
ended 31 December

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
points

Refining yield (%)

94.93

94.88

0.05 percentage
points

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
ended 31 December

Changes

2018

2017

%

Total sales volume of refined oil products
(million tonnes)

198.32

198.75

(0.2)

Total domestic sales volume of refined oil
products (million tonnes)

180.24

177.76

1.4

Retail (million tonnes)

121.64

121.56

0.1

Direct sales and Wholesale
(million tonnes)

58.61

56.20

4.3

Annualised average throughput per station
(tonne/station)

3,979

3,969

0.3

 


As of 31
December
2018

As of 31
December
2017

Changes
from the end
of previous
year (%)

Total number of Sinopec-branded service
stations

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
ended 31 December

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
ended 31 December

Changes

over the same
period of the
preceding year (%)

2018

(RMB million)

2017

(RMB million)

Operating income

2,891,179

2,360,193

22.5

Net profit attributable to equity
shareholders of the Company

63,089

51,119

23.4

Net profit attributable to equity
shareholders of the Company

after deducting extraordinary gain/loss
items

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
end of last year (%)

Total equity attributable to equity
shareholders of the Company

718,355

727,244

(1.2)

Total assets

1,592,308

1,595,504

(0.2)

 

Principal financial indicators

Items

For twelve months
ended 31 December

Changes

over the same
period of the
preceding year (%)

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
extraordinary gain/loss items

0.493

0.376

31.1

Weighted average return on net assets (%)

8.67

7.14

1.53 percentage
points

Weighted average return on net assets
after deducting extraordinary gain/loss
items (%)

8.20

6.37

1.83 percentage
points

Net cash flow from operating activities per
share

1.453

1.577

(7.9)

 

FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS

Principal accounting data

Items

For twelve months
ended 31 December

Changes

over the same
period of the
preceding year (%)

2018

(RMB million)

2017

(RMB million)

Operating Profit

82,264

71,470

15.1

Net profit attributable to owners of the
Company

61,618

51,244

20.2

Net cash generated from operating
activities

1.453

1.577

(7.9)


At 31 December 2018

(RMB million)

At 31 December 2017

(RMB million)

Change from the
end of last year (%)

Equity attributable to owners of the
Company

717,284

726,120

(1.2)

Total assets

1,592,308

1,595,504

(0.2)

Principal financial indicators

Items

For twelve months
ended 31 December

Changes

over the same
period of the
preceding year (%)

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
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 2018 and 2017.


For twelve months
ended 31 December

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.

Source: China Petroleum & Chemical Corporation
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