BEIJING, Oct. 30, 2014
/PRNewswire/ -- China Petroleum & Chemical Corporation
("Sinopec" or "the Company") (HKEX: 386; CH: 600028; NYSE: SNP)
today announced its unaudited third quarterly results ended
30 September 2014.
Financial Highlights:
- In accordance with the International Financial Reporting
Standards (IFRS), the Company's turnover and other operating
revenues was RMB 2,115.6 billion for
the first three quarters of 2014, down 1.13% over the same period
of last year. Turnover and other operating revenues for the third
quarter was RMB 759.5 billion, up
4.80% over the same period last year. Net profit attributable to
owners of the Company was RMB51.8
billion, down 0.96% year-on-year. Net profit attributable to
owners of the Company for the third quarter was RMB 19.3 billion, down 12.55% over the same
period last year. Basic earnings per share for the first three
quarters were RMB 0.444 while third
quarter basic earnings per share were RMB
0.165.
- In accordance with the China Accounting Standards for Business
Enterprises ("ASBE"), net profit attributable for equity
shareholders of the Company for the first nine months was
RMB 51.2 billion and third quarter
net profit was RMB 19.7 billion, down
0.84% and 11.02% respectively over the same period last year. Basic
earnings per share for the first three quarters were RMB 0.438 while third quarter basic earnings per
share were RMB 0.169.
- Net cash flow from operating activities during the reporting
period increased 35.97% year-on-year to RMB
108.2 billion.
Results Review:
In the first three quarters of 2014, China's economic growth has slowed down with
GDP up 7.4% over the same period last year. Domestic apparent
consumption of oil products grew by 2.8%, with strong increases in
gasoline and kerosene consumption and a decline in diesel
consumption. Domestic consumption of ethylene equivalent rose by
5.9%. International crude oil price slumped sharply in the third
quarter after a slight rebound in the first half. Domestic gasoline
and diesel prices were timely adjusted following the international
crude price, among which the third quarter saw 5 consecutive price
cuts. The Chinese government further adjusted the natural gas
price, raising the city gate price cap for non-residential existing
gas. The competitions from the imported chemical products and the
increase of newly added domestic production capacity posed great
challenges to domestic chemical producers, with chemical profit
margins decreasing but rebounding slightly in the third
quarter.
Exploration and Production: Steady Growth of Oil and Gas
Production
In exploration, we focused on oil and gas commercial
discoveries, optimised exploration areas and made further
discoveries in Tarim basin, Sichuan basin and Erdos basin. In development,
we strengthened our efforts in progressive exploration and
reservoir evaluation, implementing five oil and gas development
projects in Zhungar, Tahe and east Shengli. In natural gas
development, projects in Yuanba, Daniudi and middle-shallow layer
of west Sichuan, as well as Fuling
shale gas project proceeded smoothly. During the first three
quarters, the oil and gas production of the Company reached 357.41
million barrels of oil equivalent, up by 8.05%, out of which crude
oil output increased by 7.66% and natural gas increased by 9.14%,
compared with the same period last year. Influenced by factors such
as the falling of price and rising cost, the operating profit of
Exploration and Production Segment recorded RMB 41.748 billion, down by 10.69% compared to
the same period last year.
Refining: Significant Improvement in Refining Margin
We actively adjusted the product mix in response to changes in
domestic oil products demand, and produced more gasoline, jet fuel
and high value-added products. We actively promoted the quality
upgrade of refined oil products, significantly increasing the
output of GB V gasoline and GB IV standard diesel. We optimised
resource allocation and reduced processing costs of crude oil. We
took advantage of specialized marketing and enhanced the sales of
LPG, petroleum wax and asphalt. In the first three quarters of
2014, refinery throughput and refined oil products increased by
0.94% and 3.67% respectively over the same period last year, with
gasoline up by 12.08%, jet fuel up by 19.70% and diesel down by
4.75%. The operating profit of Refining Segment recorded
RMB 11.102 billion, up 66.80%
compared to the same period last year.
Marketing and Distribution: Restructuring Progress on
Track
We accelerated the restructuring and reform of our marketing
business and had completed the auditing, assets evaluation and
signing of the capital injection agreements. In light of sufficient
market supply and strong competition, we focused on resource
allocation, increased the sales of premium products significantly
and adjusted our marketing strategies to expand the scale of the
retail business. Focusing on customer base, we implemented a
differentiated marketing strategy and provided tailor-made
services. For the cross promotion of fuel and non-fuel business, we
promoted market-oriented and specialized development of non-fuel
business, and enhanced the value-creation capability of the sales
network. In the first three quarters, total sales volume of
refined oil products reached 138 million tonnes, up by 2.61% over
the same period last year. Total domestic sales volume of refined
oil products reached 126 million tonnes, up by 1.91%, of which
retail volume reached 86.56 million tonnes, representing an
increase of 2.05%. Sales of non-fuel business reached RMB 11.45 billion, an increase of 15.00% compared
with the same period last year. The operating profit of the
Marketing and Distribution Segment was RMB
26.439 billion, representing a decrease of 2.20% over the
same period last year.
Chemicals: Turned Profitable in the Third Quarter
Faced with new domestic chemical capacities coming on stream,
increase of the imported chemical products and stronger
competition, we actively optimised our feedstock mix, and processed
more low-cost light feedstock to reduce cost. We promoted product
mix and strengthened research, development, production and
marketing of new products; we optimised the facilities utilization
rate by shutting down non-profitable units. Meanwhile, we optimised
our marketing strategies and improved our services. In the first
three quarters, ethylene production reached 7.858 million tonnes,
up by 6.22% over the same period last year, and chemical sales
volume was 47.335 million tonnes, up by 2.17%. The total operating
losses of the Chemicals Segment was RMB
3.516 billion, of which the third quarter made a turn-around
and recorded RMB 0.452 billion
operating profit.
Capital Expenditures
The Company's capital expenditures were RMB 69.387 billion in the first three quarters of
2014.
Capital expenditure for exploration and production segment was
RMB 37.226 billion, mainly for the
construction of oil and gas production capacities in Shengli
oilfield, Tahe oilfield, Yuanba marine faces gas field, Daniudi gas
field in northern China, etc.;
development of Fuling shale gas in Chongqing; LNG projects and natural gas
pipeline construction in Shandong
and Guangxi provinces, etc..
Capital expenditure for refining segment was RMB 11.016 billion, mainly for refinery revamping
and quality upgrading projects in Shijiazhuang, Yangzi, Tahe and Jiujiang.
Capital expenditure for the chemicals segment was RMB 9.415 billion, mainly for product mix
adjustment projects including Qilu acrylonitrile, Maoming
polypropylene, and the construction of other basic chemical
projects, the acquisition of equity interest in Ningdong coal
chemical project and investment in ZhongAn coal chemical
project.
Capital expenditure for the marketing and distribution segment
was RMB 9.671 billion, mainly for
revamping of service (gas) stations and for construction of oil
product pipeline and depots, as well as the safety risks
rectification and oil vapour recovery.
Capital expenditure for corporate and others was RMB 2.059 billion, mainly for R&D facilities
and IT projects.
Summary of
Principal Operating Results for the First Three
Quarters
|
|
Operating
data
|
Unit
|
For nine-month
period ended 30 September
|
Changes
(%)
|
2014
|
2013
|
Exploration and
production
|
Oil and gas
production1
|
million
boe
|
357.41
|
330.79
|
8.05
|
Crude oil
production
|
million
barrels
|
268.87
|
249.73
|
7.66
|
China
|
million
barrels
|
232.51
|
232.19
|
0.14
|
Overseas
|
million
barrels
|
36.36
|
17.54
|
107.30
|
Natural gas
production
|
billion cubic
feet
|
530.80
|
486.34
|
9.14
|
China
|
billion cubic
feet
|
527.75
|
486.34
|
8.51
|
Overseas
|
billion cubic
feet
|
3.05
|
-
|
-
|
Realized crude oil
price
|
USD/barrel
|
94.72
|
95.11
|
(0.41)
|
Realized natural gas
price
|
USD/thousand cubic
feet
|
7.05
|
6.15
|
14.63
|
Refining4
|
Refinery
throughput
|
million
tonnes
|
175.83
|
174.19
|
0.94
|
Gasoline, diesel and
kerosene production
|
million
tonnes
|
108.99
|
105.13
|
3.67
|
|
Gasoline
|
million
tonnes
|
38.13
|
34.02
|
12.08
|
|
Diesel
|
million
tonnes
|
55.50
|
58.27
|
(4.75)
|
|
Kerosene
|
million
tonnes
|
15.37
|
12.84
|
19.70
|
Light chemical
feedstock
|
million
tonnes
|
29.70
|
28.68
|
3.56
|
Light products
yield
|
%
|
76.65
|
76.15
|
0.50
percentage
points
|
Refining
yield
|
%
|
94.66
|
94.71
|
(0.05)
percentage
points
|
Marketing and
Distribution
|
Total sales of
refined oil products
|
million
tonnes
|
138.15
|
134.64
|
2.61
|
Total domestic sales
volume of refined oil products
|
million
tonnes
|
125.66
|
123.30
|
1.91
|
|
Retail
|
million
tonnes
|
86.56
|
84.82
|
2.05
|
|
Direct sales and
Wholesale
|
million
tonnes
|
39.10
|
38.48
|
1.61
|
Total number of
Sinopec-branded service station2
|
stations
|
30,386
|
30,536
|
(0.49)
|
|
Company-operated
|
stations
|
30,373
|
30,523
|
(0.49)
|
Annualized average
throughput per station3
|
tonnes/station
|
3,799
|
3,699
|
2.70
|
Chemicals4
|
Ethylene
|
thousand
tonnes
|
7,858
|
7,398
|
6.22
|
Synthetic
resin
|
thousand
tonnes
|
10,748
|
10,223
|
5.14
|
Synthetic
rubber
|
thousand
tonnes
|
725
|
715
|
1.40
|
Monomers and polymers
for synthetic fibre
|
thousand
tonnes
|
6,253
|
6,849
|
(8.70)
|
Synthetic
fibre
|
thousand
tonnes
|
986
|
1,049
|
(6.01)
|
|
Note:
|
1. Conversion: for
domestic production of crude oil, 1 tonne = 7.1 barrels, for
overseas production of crude oil, 1 tonne = 7.20 barrels, for
production of natural gas, 1cubic meter = 35.31 cubic
feet.
|
2. The number of
service stations in 2013 was the number as at 31 December
2013.
|
3. Throughput per
service station data was annualized.
|
4. Including 100%
production of joint ventures.
|
Appendix
Principal Financial Data And Indicators
Principal Financial Data and Indicators Prepared in
Accordance with China Accounting Standards for Business Enterprises
("ASBE")
Units: million
Currency: RMB
|
|
As at 30
September 2014
|
As at 31
December 2013
|
Changes from the end
of the preceding year to the end of the reporting period
(%)
|
Total
assets
|
1,437,590
|
1,382,916
|
3.95
|
Total equity
attributable to equity shareholders of the Company
|
593,823
|
570,346
|
4.12
|
|
|
In the reporting
period
|
From the beginning of
the preceding year to the end of the preceding reporting
period
|
Changes over the same
period of the preceding year (%)
|
Net cash flow from
operating activities
|
108,247
|
79,612
|
35.97
|
|
Operating
income
|
2,115,648
|
2,139,924
|
(1.13)
|
Net profit
attributable to equity shareholders of the Company
|
51,169
|
51,600
|
(0.84)
|
Net profit
attributable to equity shareholders of the Company after deducting
extraordinary gain/loss items
|
49,317
|
51,302
|
(3.87)
|
Weighted average
return on net assets (%)
|
8.71
|
9.55
|
(0.84) percentage
points
|
Basic earnings per
share(RMB)
|
0.438
|
0.445
|
(1.57)
|
Diluted earnings per
share(RMB)
|
0.437
|
0.416
|
5.05
|
Principal financial data and indicators prepared in
accordance with International Financial Reporting standards
("IFRS")
|
As at
30 September
2014
|
As at
31 December
2013
|
Changes from the end
of the preceding year to the end of the reporting period
(%)
|
Total
assets
|
1,437,590
|
1,382,916
|
3.95
|
Equity attributable
to owners of the Company
|
592,357
|
568,803
|
4.14
|
|
|
Nine-month periods
ended 30 September 2014
|
Nine-month
periods ended 30
September
2013
|
Changes over
the
same period of
the
preceding year
(%)
|
Net cash generated
from operating activities
|
108,247
|
79,612
|
35.97
|
|
Operating
profit
|
76,364
|
78,288
|
(2.46)
|
Net profit
attributable to owners of the Company
|
51,798
|
52,300
|
(0.96)
|
Basic earnings per
share(RMB)
|
0.444
|
0.451
|
(1.55)
|
Diluted earnings per
share(RMB)
|
0.442
|
0.422
|
4.74
|
Return on net
assets(%)
|
8.74
|
9.44
|
(0.70)
percentage points
|
About Sinopec:
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 fibre, 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 "to provide energy for a
better living", Sinopec implements strategies of resources,
markets, integration, internationalization, differentiation and
green low-carbon development with a view to realize its vision of
building a people-oriented, 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:
Beijing
Tel: (86 10) 5996
0028
Fax: (86 10) 5996
0386
Email:
ir@sinopec.com
|
Media
Inquiries:
Tel: (86 10) 5996
0028
Fax: (86 10) 5996
0386
Email:
ir@sinopec.com
|
|
|
Hong
Kong
Tel: (852) 2824
2638
Fax: (852) 2824
3669
Email:
ir@sinopechk.com
|
Tel: (852) 3512
5000
Fax: (852) 2259
9008
Email:
sinopec@brunswickgroup.com
|
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SOURCE China Petroleum & Chemical Corporation