BEIJING, Oct. 28, 2012 /PRNewswire/ -- China Petroleum & Chemical Corporation (“Sinopec” or “the Company”) (CH: 600028; HKEX: 386; NYSE: SNP; LSE: SNP) today announced its unaudited third quarter results for the nine months ended 30 September, 2012.
Financial Highlights:
Business Highlights:
RESULTS REVIEW
Exploration & Production Segment
Significant progress has been made in field exploration, including south Ordos, Jiyang Depression, western Sichuan and Yuanba. The Company has strengthened and refined the development and management of old oilfields, accelerated the growth in mass production of oil and gas, promoted the exploration and development of unconventional oil and gas, and started to build the production capacity of shale gas in Fuling Pilot Project. In the first three quarters, the Company’s oil and gas production reached 318 million barrels of oil equivalent, representing a year-on-year growth of 4.92%, of which, crude oil production was 245 million barrels and natural gas production was 438.4 billion cubic feet, representing a year-on-year growth of 2.32 % and 14.69 % respectively.
Refining Segment
The Company has optimized the purchase and allocation of crude oil, readjusted refining utilization, accelerated an upgrade in the quality of oil products, and adjusted the product mix to increase the output of gasoline and jet fuel. The Company has also streamlined operations to reduce cost. In the first three quarters, the daily crude oil processing volume was 4.39 million barrels, representing a year-on-year growth of 0.46 %.
Marketing and Distribution Segment:
The Company adjusted the operation strategies in response to changes in market demand. The Company maintained a good balance of oil products resources and optimized sales structure to increase retail volume; the Company developed its non-fuel business and e-commerce business; and the Company seized the opportunity to further explore the market of natural gas for transportation. In the first three quarters, the total sales volume and retail sales volume of oil product amounted to 128.34 million tonnes and 81.05 million tonnes respectively, representing a year-on-year growth of 5.56% and 7.28%.
Chemicals Segment
In light of the market situation, the Company has actively lowered the operation utilization of its chemical facilities, maintained a safe and stable operation, continuously raised the major economic and technical indicators; optimized and adjusted the structure of raw materials and chemical products. The Company has increased the output of high-value-added and differentiated products to enhance profitability. In the first three quarters, the output of ethylene was 7.024 million tonnes, representing a year-on-year decrease of 4.51%, and the output of synthetic resin was 9.956 million tonnes, representing a year-on-year decrease of 1.10%.
Capital Expenditure
In the first three quarters of 2012, the Company’s capital expenditure was RMB 83.448 billion. Of this total, RMB 34.999 billion was used in the exploration and production segment, mainly for the exploration and development of the Shengli shallow water Oilfield, Tahe Oilfield in the northwest, Ordos oil and gas field and Sichuan Basin as well as Shandong LNG project. RMB 16.829 billion was used in the refining segment, mainly for a diesel quality upgrading, and refinery revamping projects in Shanghai Petrochemical and Jinling. RMB 10.496 billion was used in the chemicals segment, mainly for the construction of the Wuhan 800,000 tpa ethylene project, Yanshan butyl rubber project, and the Yizheng 1,4-Butanediol(BDO) project. RMB 20.334 billion was used in the marketing and distribution segment, mainly for the construction and acquisition of service stations, oil product pipelines and depots in the key areas such as highways, major cities and newly planned regions; promoting the non-fuel business and the IC card value-added services; 1,046 service stations were developed. RMB 0.79 billion was used for corporate and others, mainly for R&D facilities and the construction of IT projects.
Summary of Principal Operating Results for the First Three Quarters
Operating Data | Unit | Nine-month period ended September 30 | Changes over the same period of the preceding year (%) |
|||
2012 | 2011 | |||||
Exploration and Production | ||||||
Oil and gas production | Million barrels of oil equivalent | 318.08 | 303.17 | 4.92 | ||
Crude oil production | Million barrels | 245.01 | 239.46 | 2.32 | ||
China | Million barrels | 228.96 | 226.81 | 0.95 | ||
Overseas | Million barrels | 16.05 | 12.65 | 26.88 | ||
Natural gas production | Billion cubic feet | 438.41 | 382.25 | 14.69 | ||
Crude oil price realised | USD / barrel | 100.69 | 98.23 | 2.50 | ||
Natural gas price realised | USD / thousand cubic feet | 5.77 | 5.47 | 5.48 | ||
Refining (note 1) | ||||||
Processing volume of crude oil | Thousand barrels / day | 4,390 | 4,370 | 0.46 | ||
Refinery throughput | Million tonnes | 98.39 | 95.45 | 3.08 | ||
Including: | Gasoline | Million tonnes | 29.70 | 27.59 | 7.65 | |
Diesel oil | Million tonnes | 57.70 | 57.63 | 0.12 | ||
Kerosene | Million tonnes | 10.99 | 10.23 | 7.43 | ||
light chemical feedstock production | Million tonnes | 26.89 | 27.37 | (1.75) | ||
Light yield | % | 76.93 | 76.18 | Increased 0.75 percentage points | ||
Refinery yield | % | 95.23 | 95.20 | Increased 0.03 percentage points | ||
Marketing and Distribution | ||||||
Total sales volume of oil products | Million tonnes | 128.34 | 121.58 | 5.56 | ||
Total domestic sales volume of oil products | Million tonnes | 118.48 | 113.57 | 4.32 | ||
Including: | Retail | Million tonnes | 81.05 | 75.55 | 7.28 | |
Direct sales | Million tonnes | 24.45 | 24.12 | 1.37 | ||
Wholesale | Million tonnes | 12.99 | 13.90 | (6.55) | ||
Total number of service stations (note 2) | Stations | 30,510 | 30,121 | 1.29 | ||
Including: | Company-operated | Stations | 30,497 | 30,106 | 1.30 | |
Franchised | Stations | 13 | 15 | (13.3) | ||
Annualized throughput per station (Note 3) | Tonnes/station | 3,542 | 3,330 | 6.37 | ||
Chemicals (Note 1) | ||||||
Ethylene | Thousand tonnes | 7,024 | 7,356 | (4.51) | ||
Synthetic resin | Thousand tonnes | 9,956 | 10,067 | (1.10) | ||
Synthetic rubber | Thousand tonnes | 703 | 746 | (5.76) | ||
Synthetic fiber monomer and polymer | Thousand tonnes | 6,699 | 7,086 | (5.46) | ||
Synthetic fiber | Thousand tonnes | 992 | 1,044 | (4.98) |
Note 1: Including 100% production of Joint Ventures;
Note 2: Service station data for 2011 is as of December 31, 2011;
Note 3: The throughput per station is an annualized average of the Company’s company-operated service stations;
Note 4: Conversion rates: for domestic production of crude oil, 1 tonne = 7.1 barrels, for production of crude oil overseas, 1 tonne = 7.27 barrels; for refinery throughput, 1 tonne = 7.35 barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet.
Appendix
Highlight of Results
Principal financial data and indicators prepared in accordance with the China Accounting Standards for Business Enterprises (“ASBE”).
At 30 September 2012 | At 31 December 2011 | Changes from the end of last year (%) | ||||||
Total assets (RMB millions) | 1,179,915 | 1,130,053 | 4.41 | |||||
Total equity attributable to shareholders of the Company (RMB millions) |
492,307 | 474,399 | 3.77 | |||||
Net assets per share attributable to shareholders of the Company (RMB) | 5.670 | 5.472 | 3.62 | |||||
Nine-month periods ended 30 September (January ~ September) |
||||||||
2012 | 2011 | Changes over the same period of the preceding year (%) | ||||||
Net cash flow from operating activities (RMB millions) | 73,559 | 78,449 | (6.23) | |||||
Net cash flow from operating activities per share (RMB) | 0.847 | 0.905 | (6.41) | |||||
Three-month periods ended 30 September (July ~ September) |
Nine-month periods ended 30 September (January ~ September) |
|||||||
2012 | 2011 | Changes over the same period of the preceding year (%) | 2012 | 2011 | Changes over the same period of the preceding year (%) | |||
Net profit attributable to shareholders of the Company (RMB millions) | 18,249 | 19,721 | (7.5) | 41,946 | 59,960 | (30.0) | ||
Basic earnings per share (RMB) | 0.210 | 0.228 | (7.9) | 0.483 | 0.692 | (30.2) | ||
Diluted earnings per share (RMB) | 0.198 | 0.220 | (10.0) | 0.461 | 0.672 | (31.4) | ||
Basic earnings per share (before extraordinary gain and loss) (RMB) | 0.205 | 0.228 | (10.1) | 0.473 | 0.687 | (31.1) | ||
Weighted average return on net assets (%) | 3.73 | 4.27 | (0.54) percentage points | 8.60 | 13.36 | (4.76) percentage points | ||
Weighted average return (before extraordinary gain and loss) on net assets (%) | 3.64 | 4.26 | (0.62) percentage points | 8.42 | 13.26 | (4.84) percentage points |
Extraordinary items | Nine-month period ended 30 September 2012 (RMB millions) |
Gain on disposal of non-current assets | (600) |
Donations | 77 |
Gain on holding and disposal of various investments | (76) |
Other extraordinary income and expenses, net | (625) |
Subtotal | (1,224) |
Tax effect | 306 |
Total | (918) |
Attributable to: Equity shareholders of the Company | (884) |
Minority interests | (34) |
Principal financial data and indicators prepared in accordance with International Financial Reporting Standards (“IFRS”)
At 30 September 2012 | At 31 December 2011 | Changes from the end of last year (%) | ||||||
Total assets (RMB millions) | 1,190,103 | 1,144,528 | 3.98 | |||||
Total equity attributable to equity shareholders of the Company (RMB millions) | 489,722 | 472,328 | 3.68 | |||||
Net assets per share (RMB) | 5.641 | 5.448 | 3.54 | |||||
Adjusted net assets per share (RMB) | 5.527 | 5.339 | 3.52 | |||||
Nine-month periods ended 30 September (January ~ September) |
||||||||
2012 | 2011 | Changes over the same period of the preceding year (%) | ||||||
Net cash generated from operating activities (RMB millions) | 73,327 | 78,074 | (6.08) | |||||
Three-month periods ended 30 September (July ~ September) |
Nine-month periods ended 30 September (January ~ September) |
|||||||
2012 | 2011 | Changes over the same period of the preceding year (%) | 2012 | 2011 | Changes over the same period of the preceding year (%) | |||
Profit attributable to equity shareholders of the Company (RMB millions) | 18,326 | 20,222 | (9.38) | 42,829 | 61,396 | (30.24) | ||
Basic earnings per share (RMB) | 0.211 | 0.233 | (9.44) | 0.493 | 0.708 | (30.37) | ||
Diluted earnings per share (RMB) | 0.199 | 0.226 | (11.95) | 0.471 | 0.688 | (31.54) | ||
Return on net assets (%) | 3.74 | 4.35 | (0.61) percentage points |
8.75 | 13.22 | (4.47) percentage points |
About Sinopec Corp.
Sinopec is one of the largest integrated energy and chemical companies with upstream, midstream and downstream operations in China. Its principal operations include: the exploration and production, pipeline transportation and sales of petroleum and natural gas; the sales, storage and transportation of petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products; import & export, as well as import and export agency business of oil, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Adhering to its corporate mission of “Enterprise development, Contribution to the Country, Shareholder value creation, Social responsibility and Employee wellbeing”, Sinopec Corp. implements strategies of resources, markets, integration, internationalization, differentiation and green low-carbon development with a view to realize its vision of building a world first class 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: (8610) 59960028 Tel: (8610) 59960028
Fax: (8610) 59960386 Fax: (8610) 59960386
Email: ir@sinopec.com
Hong Kong
Tel: (852) 28242638 Tel: (852) 35125000
Fax: (852) 28243669 Fax: (852) 22599008
Email: sinopec@brunswickgroup.com