omniture

SEG Announces 2015 Annual Results

Deepen Reform and Strengthen Management to Achieve Optimized Operating Results
PRChina
2016-03-22 15:28 1798

HONG KONG, March 22, 2016 /PRNewswire/ -- SINOPEC Engineering (Group) Co., Ltd. ("SEG", together with its subsidiaries known as the "Company") (stock code: 2386) today announces its annual results for the year ended 31 March 2016 (the "Reporting Period").

Results Highlights

  • Achieved satisfactory operating results amid complicated and challenging market environment: During the Reporting Period, the Company's revenue was RMB45.498 billion and net profit was RMB3.318 billion. Basic earnings per share was RMB0.75. Maintained high dividend payout ratio: the Board recommended a final dividend of RMB0.183 per Share for the year 2015. After taking into account the interim dividend of RMB0.114 per Share, the total dividend for the year will be RMB0.297 per Share.
  • Maintained stable ratio of high-end business with outstanding contribution from the new coal chemicals segment. Overseas business recorded steady growth: During the Reporting Period, Revenue from the Company's EPC Contracting segment reached RMB27.839 billion, accounted for 56.5% of total revenue. Revenue from the New Coal Chemicals segment increased 16.7% year-on-year to RMB17.432 billion, accounted for 38.3% of total revenue. This was mainly due to the revenue growth of projects such as Zhongtian Hechuang Coal Chemical Project. The overseas revenue of the Company was RMB9.091 billion, representing an increase of 32.9% and accounted for 20.0% of total revenue. This was mainly attributable to the revenue increase from the large overseas EPC projects.
  • New contracts exceeded RMB50 billion and backlog over RMB100 billion: During the Reporting Period, the value of new contracts amounted to RMB52.676 billion. As at 31 December 2015, backlog of the Company amounted to RMB111.100 billion, representing an increase of 6.9% and 2.44 times of the total revenue in 2015.
  • Achieved breakthroughs in overseas markets: During the Reporting Period, the Company signed Kuwait Oil Refining Project with a contract value of approx. USD1.7 billion. For the Company, it is the largest contract and project gained in the Middle East region as well as a milestone in establishing and strengthening its business in the Middle East market.
  • Continued to achieve fruitful results in technology innovation: At the National Science and Technology Awards Conference held on 8 January 2016, the project "Development and Application of Packaged Technology for Efficient and Environmental-Friendly Aromatics" engaged by the Company won the 2015 National Special Award for Scientific and Technological Progress.

Business Review and Operation Highlights

Mr. ZHANG Jianhua, Chairman of SEG, commented, "In 2015, facing the complicated and ever changing domestic and foreign macro economies and the extremely challenging market environment of oil refining and petrochemical engineering, the Company planned ahead, proactively responded to the market, enhanced corporate governance, strengthened internal reform, focused on management refinement, and achieved satisfactory operating results. In 2015, the Company made steady progress with its reform, development, production and operations. In terms of corporate reform, the Company integrated resources, commenced the internal restructuring of the lifting and transportation company, the research and development center and the business in Saudi Arabia, and focused more on the coordinated development of and the synergy among research and development, consulting, design, procurement, construction, manufacturing, commissioning and operation maintenance. In terms of project implementation, the Company strictly controlled and managed engineering projects, and increased its gross profit margins. In terms of market development, the Company catered for clients with different needs, focused more on market-oriented and customer-centered market development philosophy, intensified the comprehensive advantages of its brand, results, technology and management, explored innovative business models, and expanded its business fields. In terms of international businesses, the Company seized the opportunities brought by the "Belt and Road" Initiative, enhanced its international standards, accelerated its overseas expansion plan, strived to create a new business image of SINOPEC SEG, and achieved a breakthrough in energy engineering overseas, such as Kuwait and Thailand."

Successful Implementation of Major Projects:

  • The world's largest coal-based methanol-to-olefins project - As at the end of the Reporting Period, approximately eight tenths of the overall progress of the Zhongtian Hechuang Coal Chemical Project had been completed. Certain units of the project have full handover and put into trail operation. The project is expected to put into full operation in 2016.
  • The handover of the EPC Contracting for a 1.8 Mtpa methanol-to-olefin (DMTO) unit, a 300 Ktpa polyolefin unit, a 600 Ktpa olefin separation unit, etc. of Inner Mongolia China Coal Mengda New Energy Chemical Industry Co., Ltd. was finished successfully within the Reporting Period.
  • Over 50% of the overall progress of the EPC Contracting project of the receiving terminal stations of Guangxi LNG Project and the receiving terminal stations of Tianjin LNG Project has been completed. Both projects are using the Company's patented design and construction technologies, and are two significant EPC Contracting projects signed after the receiving terminal stations of Shandong LNG Project. These projects played an important role in alleviating domestic LNG demand.
  • The Company's large project in terms of contract value executed in the Middle East - Kuwait Oil Refining Project (contract value of USD1.69 billion) has commenced. As at the end of the Reporting Period, the detailed design of the projects has been started, requisition of critical equipments has been commenced.
  • As at the end of the Reporting Period, over two tenths of the overall progress of the Company's largest project in the Southeast Asia region - Malaysia RAPID Oil Refining Project (contract value of USD1.33 billion) has been completed, among which over six tenths of detailed design of the project has been completed. The requisition of equipment is in full swing and onsite piling has been generally completed. The progress, cost, quality and safety of this project were under control.
  • Two major oil refinery projects in the mid-Asia regional contracted by the Company - As at the end of the Reporting Period, the handover for the Aromatics Project of Kazakhstan Atyrau Refinery has been fulfilled and all units have been put into operation. Meanwhile, approximately seven tenths of the overall progress of the FCC Project of Kazakhstan Atyrau Refinery has been completed.

Solid Market Development: Facing a relatively difficult market condition, the Company exploited its overall advantage of its industry chain, business chain and technical chain, turned challenges into power; sought opportunity in difficulty; went all out to explore domestic and foreign markets.

  • Domestically, during the Reporting Period, the Company has newly signed contracts for a number of large projects, such as Tianjin LNG Project with a contract value of RMB5.600 billion; Guangxi LNG Project with a contract value of RMB4.705 billion; Shenhua Ningxia Coal Chemical Project with a contract value of RMB1.019 billion; Maoming Ethylene Oxide Project with a contract value of RMB928 million; Anqing Butanol and Octanol Project with a contract value of RMB471 million; Chongqing LNG Liquefaction Project with a contract value of RMB448 million; Shenhua Direct Coal to Liquid Design Project with a contract value of RMB370 million; Yan'an Refinery Gas Resource Comprehensive Utilization Project with a contract value of RMB350 million.
  • Overseas, during the Reporting Period, the Company newly signed contracts for a number of large projects, such as Kuwait Oil Refining Project with a contract value of USD1.696 billion; Saudi Phosphate Fertiliser Project with a contract value of USD448 million; Thailand PP Project with a contract value of USD220 million.

In addition to the above projects, the Company has also tracked some oil refining, petrochemical engineering, new coal chemical, environmental protection and energy saving projects, which are expected to be signed in the future.

Fruitful Results in Technology Innovation:

  • At the National Science and Technology Awards Conference held on 8 January 2016, the project "Development and Application of Packaged Technology for Efficient and Environmental-Friendly Aromatics" engaged by the Company won the 2015 National Special Award for Scientific and Technological Progress, which was the second time for the Company to be awarded the highest honour of Scientific and Technology Progress after the project "Industrialized Application of the Technology for the Safe and Efficient Development of Extra Large Gas Field of Exceptional Depth and High Content of Sulfur". In the project, the Company made outstanding contributions in aspects such as innovations in process and engineering technology, energy utilisation, smart control, safety and environmental protection and work implementation through the pioneering work it did in green new technology for refinement of raw materials, new molecular sieve materials of efficient transformation and separation, and the new technology for in-depth integration of aromatics complex that can substantially lower energy consumption, innovative integrated control methods, design methods and manufacturing processes, which achieved smart control, the long-cycle essential safety of the process unit, localization of key equipment and other targets. The technological achievement has markedly improved China's technology for the production of aromatics and its international competitiveness. During the Reporting Period, the Company won 87 awards for scientific and technological achievements from the state and Sinopec Group.
  • Projects under the national "863 Program" and the 12th Five-Year Plan: Detailed design is underway for the new technology for extraction of phenol from medium-low-temperature coal tar and hydrogenation for making clean fuels. The design of process package has been completed for 4 million Nm3/d synthetic natural gas (SNG).
  • Technologies for the quality upgrading of oil products: The Company has undertaken 13 projects for upgrading the quality of gasoline and diesel fuel of Sinopec Group, including 6 quality upgrading projects for gasoline and 7 quality upgrading projects for diesel fuel. During the Reporting Period, all the projects are in smooth progress. The technical measures improvement, technology transformation and optimized energy conservation can obviously improve the quality of the oil products of the existing manufacturing enterprises, lower the energy consumption of per unit products and speed up the process of environmental protection.
  • Successful Technological Innovation of Luoyang Technology Research and Development Center: During the Reporting Period, the R&D center carried out different forms of R&D activities with the subsidiaries to support the enhancement of their engineering technology in the aspects of the R&D on packaged technology, engineering and technical services. All of the 29 projects are operating well and have been showing the preliminary benefits of synergy.

Steady Advancement of Environmental Protection and Energy Saving Business: The Company actively followed the national development trend of energy saving and environmental protection, and vigorously pushed forward energy saving and environmental protection business. It actively promoted its own technologies, and carried out strategic cooperation with well-known domestic and foreign technology licensors, providing customers with a total solution, which covered flue gas desulfurization and denitrification, sewage treatment, sludge reduction and drying, soil cleaning-up, CO2 recycling, low-temperature residual heat power generation and other fields. The Company was actively involved in Sinopec's "Clear Water & Blue Sky Plan" and "Energy Efficiency Doubling Plan", and explored and implemented new business models regarding contract energy management and contract environmental protection management, and provided energy saving diagnosis and optimisation services for enterprises, further developing environmental protection and energy saving business. During the Reporting Period, the Company signed new environmental protection business contracts valued at approximately RMB1.124 billion, which was mainly from flue gas desulfurization / denitrification and water treatment projects, and new energy saving business contracts valued at approximately RMB213 million, which were mainly from energy saving reform projects. The Company carried out multi-level exchanges and cooperation with many domestic and foreign environmental protection and energy saving technology licensors, to build and improve its technology chain and service chain in the field of environmental protection and energy saving. The Company created a new cooperation mode by signing strategic cooperation agreements with partners, and jointly promoted pilot projects.

Intensified Enterprise Reform: We have extensively promoted resource optimisation and reform and restructuring according to the vision of "building a world-class engineering company" and the developmental mode of "integrated operation and group-oriented management and control". The Company, choosing professional reorganization as a breakthrough, launched to deepen reform and optimize resources, and accelerated the restructuring reform of Sinopec Heavy Lift Transportation Engineering Co., Ltd. (the "Lift and Transportation Company"), R&D Center, Sinopec Engineering Group Saudi Arabia Co., Ltd., (the "Saudi Company"), made great progress during the Reporting Period, which effectively stimulated the optimisation of resource allocation and improved comprehensive competitiveness of the Company.

Safe Operation: During the Reporting Period, in terms of the QHSE management, the Company carried out comprehensive and strict management of activities, paid close attention to the implementation of policies and assignment of responsibilities, and based on the principle of strengthening management and implementation of responsibilities, implemented the requirements for full participation, assignment of responsibilities, perfection of systems, continual improvement, process control and serving clients. Through activities such as signing QHSE liability statements, conducting training, supervision, inspections and advancing site HSE standardization, the Company carefully looked for weak links and managed the QHSE supervision and management of direct operation segments properly. As a result, the basic management work was further enhanced, and the quality, safety and overseas public security of the projects under construction were under full control. As at the end of the Reporting Period, no safety, quality and overseas public security accident has happened in the project under execution owing to conscientiousness and strict management of all employees of the Company, and 254 million safe man hours in accumulation have been realised by the Company, of which 47 million safe man hours have been realised overseas.

Industry and Business Prospects

Mr. Zhang Jianhua, Chairman of SEG commented, "In 2016, the global economy will confront variety of challenges, while regional and global economic will be under heavy pressure. The trend of international oil price is still not optimistic. Under such austere situation, capital expenditures of large domestic and foreign petroleum companies are very likely to continue to pull back. The domestic market of new coal chemical engineering still finds itself under the pressure for environmental protection and the challenge against profitability. Facing the extremely challenging market conditions, The Company will accelerate its restructuring, enhance the quality and effectiveness of existing businesses, and foster and develop new businesses; deepen reform in a comprehensive manner, further improve its system and policy, optimise resources and increase operation efficiency; put more focuses on strategic planning and management, as well as value-based management; develop energy-saving and eco-friendly business and contribute to the sustainable development of the industry; continue to highlight return to shareholders, actively fulfill its corporate social responsibility, boost the sustainable development of both the enterprise and the social economy."

Continuously Promote In-depth Reform and Accelerate the Optimisation of Internal Resources: In 2016, the Company will make full use of the policy environment for reform, carry out thorough investigation, make systematic thinking, improve internal management system, keep to the reform direction toward professionalism and differentiation, accelerate the transformation of internal systems and mechanisms, continuously improve the modern corporate system; effectively boost the transformational development of construction enterprises and the upgrading of construction business, constantly increase the ratio of high-end business and enhance profitability.

Explore Transformational Development to Expand New Business Scope And Modes: In 2016, guided by the strategic thinking about technology-led market, the Company will actively promote its own technologies and, at the same time, enter into strategic cooperation with world famous technology patent licensors to explore transformational development, open up new business fields and modes and enhance its overall competitiveness. The Company will continue to study new business modes, e.g. the management of energy and environment via contract, assistance in financing, summarise and promote the experience of Jiujiang Petrochemical in contract-based environmental management, launch new pilot projects under the precondition of keeping risks under control; make attempt at the mode of contract-based energy management in the energy saving and transformation project of the refinery within Sinopec Group. Several such projects and the projects for utilisation of low-temperature heat are in steady progress.

Strengthen Process Management and Project Control, Take Multiple Measures to Increase Cost Efficiency: In 2016, the Company will intensify the overall coordination and horizontal communications of projects, give full play to its overall strength, tighten the control over the implementation process of projects, enhance the efficiency of implementation, beef up the performance capacity of projects through the improvement of the work processes of projects, including planning, execution, examination and summarization; intensify the compilation of cost budget of projects and the cost analysis of completed EPC projects, assign the responsibility for cost management and continuously deepen the management of project cost; further advance project settlement, strengthen the process control, progress confirmation and contract change management of project implementation, impel the timely settlement of the projects; further standardize subcontracting management, build a uniform subcontracting management system by focusing on the safety, quality control and enhancement of economic benefits in the implementation process of projects, strengthen the management of subcontractors; establish an integrated management mechanism for overseas projects, intensify the allocation of resources and control of risks, enhance the profitability of overseas projects.

Capture the Strategic Opportunity of the "Belt and Road" Initiative for Global Development Advancement: In 2016, the Company will leverage on the national "Belt and Road" Initiative, step up the cooperation with financial institutions and work hard to open up overseas markets; actively take part in and initiative the EPC projects driven by the "project investment" function and demand.Track and serve well the overseas investment cooperation projects advocated by Sinopec Group, exploit its own advantages and seize hold of the opportunity; track the investment needs and intention of domestic capital for overseas refining chemical projects, obtain the opportunity to contract for projects by playing the role of bridge and link in project investment. The Company will give play to its advantages in business chain and industrial chain, strengthen the front-end fostering of customer business, provide "one-stop" technical and financial solutions as well as integrated services that cover project consultation, integrated planning, financing strategy and support, FEED, EPC and PMC; continuously enhance the competitiveness of overseas business and attain its value goals on the basis of its own traditional advantages and the business mode of differentiated operations.

Focus on Technology Progression to Maintain and Enhance Technology Leading Advantages: In 2016, the Company will enhance its technology innovation ability and implement the "innovation-driven" strategy to ensure its long-term development. By improving the ability of technology control to provide technical support for production and operations and improve the quality, efficiency and benefits of project design and construction. The measures to be taken will include: (i) organize major technology cooperation and the implementation of technology innovation projects by keeping being market-oriented; (ii) pay attention to and strengthen the technology management, control and support during the implementation of projects; (iii) accelerate the integration of technical standards, continuously promote the sharing of technical resources and realise synergic development; (iv) successfully operate technology R&D center to make adequate use of the resources, fully leverage on its cutting-edged advantages in the development of engineering technology, cement the cooperation with world famous patent licensors, and facilitate and stimulate of market demand through its own technology.

Vigorously Exploit Environmental Protection and Energy Saving Sectors to Create New Business Growth: In 2016, the Company will continue to energetically push forward the business of energy saving and environmental protection in keeping with the development direction of the national industry and energy saving and environmental protection, promote its own technologies in the market and open up the energy saving and environmental protection market by all means. In terms of environmental protection, the subsidiary engineering companies of the Company will expand the market for the quality upgrading of oil products and seize hold the opportunity to provide services like design consultation for the projects of Sinopec Group, while the subsidiary construction enterprises of the Company will actively communicate with project owners and designers in a bid to obtain larger shares of construction. The Company will strengthen the expansion of the market for treatment of coal-to-chemical sewage, organize the investigation of and cooperation with sewage treatment technology providers, form its own integrated solutions, offer to provide environmental protection consulting services for coal-to-chemical customers, pay close attention to and track the progress of sewage treatment projects. In terms of energy saving, the Company will increase the promotion and application of the technology for low-temperature residual heat; provide energy saving diagnosis for the petrochemical enterprises of Sinopec Group and facilitate the implementation of projects for integrated utilization of low-temperature residual heat.

Establish Modern Human Resource Management System and Management Incentive Mechanism: In 2016, the Company will continuously optimise the employment management mechanism to meet the needs for human resources in the construction of its projects; speed up the building of the staff career system and scientifically design a longitudinal position system based on posts by relying on the existing post management system to create a system that contributes to success in career and on-post development; further the salary system by devising methods of controlling manpower cost through dynamic adjustment; optimise the KPI system and the setting of indicators to create the work atmosphere that facilitates the mobilization of the enthusiasm, originality and cooperativeness of employees through effective performance evaluation to boost its own sustainable development.

Construct an Integrated Management Information System: In 2016, the Company will revolve around the strategy for development of engineering segment business to establish an integrated ERP management system of engineering enterprises that covers design, procurement and construction, and fully enhance the business management level and project management capability of the enterprise; focus on the ERP management system to gradually set up and improve an information management system and integrated platform for collaborative work, accelerate the in-depth fusion between informatization and business, enhance the overall management level and operation efficiency of the Company. Meanwhile, the Company will integrate the allocation of resources, increase the sharing of the fruits of engineering software, standardise the operation mechanism, improve the efficiency of collaboration, solidly and effectively boost the application of informatisation achievements, gradually form the synergy of informatisation and the application by enterprises to provide all-round engineering data for an integrated management information system.

Summary of Financial Data and Indicators Prepared in Accordance with

International Financial Reporting Standards ("IFRS")













Unit: RMB '000








Items

As at

As at

As at

As at

As at

Changes from

31 December

31 December

31 December

31 December

31 December

the end of

2015

2014

2013

2012

2011

2014 (%)

Non-current assets

7,939,453

8,052,331

8,166,479

8,078,778

6,992,691

(1.40)

Current assets

50,464,917

44,032,264

39,198,790

29,051,247

37,411,516

14.61

Current liabilities

30,798,517

26,347,950

23,620,920

26,762,416

37,890,135

16.89

Non-current liabilities

2,967,341

2,864,071

2,764,008

3,286,359

3,780,664

3.61

Consolidated equity
attributable to equity
holders of the Company

24,634,775

22,869,116

20,976,714

7,077,985

2,730,107

7.72

Net asset per share of
equity holders of the
Company (RMB)

5.56

5.16

4.74

2.28

0.88

7.72













Unit: RMB '000









Year ended 31 December

Changes over

the same

period of

Items

2015

2014

2013

2012

2011

2014 (%)

Revenue

45,498,354

49,345,959

43,571,851

38,526,489

30,600,677

(7.80)

Gross profit

6,157,034

6,290,612

6,406,191

5,528,106

5,074,336

(2.12)

Operating profit

3,845,193

4,039,003

4,413,485

3,832,023

3,724,592

(4.80)

Profit before taxation

4,240,047

4,550,695

4,751,041

4,252,067

4,243,958

(6.83)

Profit attributable to equity
holders of the Company

3,317,704

3,489,799

3,656,802

3,316,970

3,375,039

(4.93)

Basic earnings per share
(RMB)

0.75

0.79

0.93

1.07

1.09

(4.93)

Net cash flow generated
from/(used in) operating
activities

5,793,143

333,312

(85,995)

1,556,489

1,688,845

1,638.05

Net cash flow generated
from/(used in) operating
activities per share (RMB)

1.31

0.08

(0.02)

0.50

0.54

1,638.05









Year ended 31 December


Items


2015

2014

2013

2012

2011

Gross profit margin (%)


13.5

12.7

14.7

14.3

16.6

Net profit margin (%)


7.3

7.1

8.4

8.6

11.0

Return on assets (%)


6.0

7.0

8.7

8.1

8.4








Items


As at

As at

As at

As at

As at


31 December

31 December

31 December

31 December

31 December


2015

2014

2013

2012

2011

Asset-liability ratio (%)


57.8

56.1

55.7

80.9

93.8








Business Performance by Segment

Revenue by Business Segments

During the Reporting Period, the Company's total revenue and net profits attributable to the Company's shareholders were RMB45.498 billion and RMB3.318 billion, respectively. As at the end of the Reporting Period, the Company's backlog was RMB111.100 billion. The value of new contracts entered into by the Company during the Reporting Period was RMB52.676 billion.

The business of the Company is mainly comprised of four segments: (1) Engineering, consulting and licensing; (2) EPC Contracting; (3) Construction; and (4) Equipment manufacturing.

Revenue generated from business segments:


Year ended 31 December




2015


2014





Revenue


Percentage
of
total revenue



Revenue


Percentage
of
total revenue


Change


(RMB '000)


???%???


(RMB '000)


???%???


???%???

Engineering, consulting
and licensing

2,625,673


5.3


3,645,174


6.8


(28.0)

EPC Contracting

27,838,722


56.6


30,132,251


56.2


(7.6)

Construction

18,123,282


36.8


19,159,750


35.7


(5.4)

Equipment manufacturing

679,517


1.4


704,107


1.3


(3.5)

Subtotal

49,267,194


100.0


53,641,282


100.0


(8.2)

Total after inter-segment
elimination (1)

45,498,354


N/A


49,345,959


N/A


(7.8)

Note:

(1) The total after inter-segment elimination means the aggregate revenue generated from each business segment after inter-segment elimination to exclude the impact of inter-segment transactions. Inter-segment elimination mainly arises from the inter-segment sales to the EPC Contracting segment made by the construction and equipment manufacturing segments.



Revenue by Industries

The Company derived its revenue mainly from services provided to clients in the oil refining, petrochemical and new coal chemicals and other industries. During the Reporting Period, since the large EPC of oil refining and petrochemical industries are mainly in the starting stage or in the finishing stage, the Company's revenue from the oil refining industry was RMB7.683 billion, representing a decline of 23.2% as compared with that of the same period of the previous year. The revenue derived from the petrochemical industry was RMB11.983 billion, representing a decline of 25.2% as compared with that of the same period of the previous year. The revenue derived from the new coal chemical industry was RMB17.432 billion, representing an increase of 16.7% as compared with that of the same period of the previous year. This was mainly due to the revenue growth of projects such as Zhongtian Hechuang Coal Chemical Project. The revenue derived from other industries was RMB8.401 billion, which was basically equivalent on a year-on-year basis, and mainly from the clean energy LNG receiving station and other projects.

Revenue generated from industries in which the clients operate:


Year ended 31 December




2015


2014





Revenue


Percentage
of
total revenue



Revenue


Percentage
of
total revenue


Change


(RMB '000)


???%???


(RMB '000)


???%???


???%???

Oil refining

7,683,275


16.9


10,006,661


20.3


(23.2)

Petrochemicals

11,982,650


26.3


16,010,839


32.4


(25.2)

New coal chemicals

17,431,865


38.3


14,938,090


30.3


16.7

Other industries

8,400,564


18.5


8,390,369


17.0


0.1

Total

45,498,354


100.0


49,345,959


100.0


(7.8)

Revenue in the PRC and overseas

The Company continues to expand its overseas business steadily. During the Reporting Period, the overseas revenue of the Company was RMB9.091 billion, representing an increase of 32.9% as compared with that of the same period of the previous year. This was mainly attributable to the revenue increase from the large overseas EPC projects, such as U.S. JUMBO PTA and PET Project, Petronas RAPID project of Malaysia's Petroliam Nasional Berhad and FCC Project of Kazakhstan Atyrau Refinery.

Revenue generated from regions where the clients operate:


Year ended 31 December




2015


2014





Revenue


Percentage
of
total revenue



Revenue


Percentage
of
total revenue


Change


(RMB '000)


???%???


(RMB '000)


???%???


???%???

PRC

36,407,242


80.0


42,507,010


86.1


(14.4)

Overseas

9,091,112


20.0


6,838,949


13.9


32.9

Total

45,498,354


100.0


49,345,959


100.0


(7.8)

Total Value of Backlog

As at 31 December 2015, the value of the Company's backlog totaled RMB111.100 billion, an increase of 6.9% from that as at 31 December 2014, representing 2.44 times the annual revenue of RMB45.498 billion in 2015.

Total values of backlog for each business segment:


As at 31 December 2015


As at 31 December 2014


Change


(RMB '000)


(RMB '000)


???%???

Engineering, consulting and licensing

6,935,838


6,514,745


6.5

EPC Contracting

89,776,105


82,079,668


9.4

Construction

14,273,326


15,191,362


(6.0)

Equipment manufacturing

114,615


136,508


(16.0)

Total

111,099,884


103,922,283


6.9

Total values of backlog categorised by industries in which the clients operate:


As at 31 December 2015


As at 31 December 2014


Change


(RMB '000)


(RMB '000)


???%???

Oil refining

32,951,450


26,639,953


23.7

Petrochemicals

22,730,572


23,600,743


(3.7)

New coal chemicals

37,345,973


47,261,719


(21.0)

Other industries

18,071,888


6,419,869


181.5

Total

111,099,884


103,922,283


6.9

Total Value of New Contracts

During the Reporting Period, the value of the new contracts was RMB52.676 billion, representing a decrease of 13.2% as compared with that of the same period of the previous year.

Total values of new contracts for each business segment:


Year ended 31 December




2015


2014


Change


(RMB '000)


???%???

Engineering, consulting and licensing

3,046,766


4,109,902


(25.9)

EPC Contracting

35,535,159


38,172,858


(6.9)

Construction

13,995,579


18,299,071


(23.5)

Equipment manufacturing

98,451


118,059


(16.6)

Total

52,675,954


60,699,890


(13.2)

Total values of new contracts by industries:


Year ended 31 December




2015


2014


Change


(RMB '000)


???%???

Oil refining

13,994,772


17,894,394


(21.8)

Petrochemicals

11,112,479


12,336,104


(9.9)

New coal chemicals

7,516,119


23,040,511


(67.4)

Other industries

20,052,583


7,428,881


169.9

Total

52,675,954


60,699,890


(13.2)

Capital expenditure

During the Reporting Period, the Company's capital expenditure was approximately RMB443 million, which was mainly used to improve the operational or non-operational facilities, update construction equipment, set up information technology systems, procure scientific research equipment, prevent potential hazards, and etc.

~ End ~

This press release is issued by PRChina Limited on behalf of SINOPEC Engineering (Group) Co., Ltd.

About SINOPEC Engineering (Group) Co., Ltd.

SINOPEC Engineering (Group) Co., Ltd. ("SEG" or "the Company") is the leading oil refining, petrochemical and new coal chemicals engineering company in the PRC. The Company's main business consists of engineering, consulting and licensing, EPC Contracting, construction and equipment manufacturing. Leveraging 60 years of industry experience and continual innovation in specialised technologies, the Company has developed the strongest execution capabilities in the PRC with respect to engineering and constructing large-scale oil refining, petrochemical and new coal chemical complexes natural gas processing as well as storage and transportation engineering is highly competitive in the international engineering market.

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that the Company expects or anticipates will or may occur in the future (including but not limited to projections, targets, other estimates and business plans) are forward-looking statements. The Company'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, 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 the Company's control. In addition, the Company makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

Investor and Media Enquiries:

SINOPEC Engineering (Group) Co., Ltd. - Office of the Board
Shan Kai/ Liu Jingjing / Yang Yue
Tel: (86) 10 6499 8019 / (86) 10 6499 8020 / (86) 10 6499 8017
Fax: (86) 10 6499 8018
Email: seg.ir@sinopec.com

PRChina Limited
Emma Liang / Charles Chan / Brandi Mo
Tel: (852) 2522 1838 / (852) 2522 1368
Fax: (852) 2521 9955
Email: eliang@prchina.com.hk / ckchan@prchina.com.hk /
bmo@prchina.com.hk

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/seg-announces-2015-annual-results-300239394.html

Source: PRChina
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