BEIJING, Oct. 29, 2015
/PRNewswire/ -- China Petroleum & Chemical Corporation
("Sinopec Corp." or the "Company")(HKEX: 386; SSE: 600028; NYSE:
SNP) today announced its unaudited results for the nine months
period ended 30September 2015.
Results Review:
In the first three quarters of 2015, global economic recovery
remained slow. China's GDP grew by
6.9%. International crude oil prices fluctuated at low level and
continued to drop in the third quarter. Domestic refined oil
product prices were adjusted timely in line with international
crude oil prices with 5 consecutive cuts followed by one increase.
Domestic apparent consumption of refined oil products grew by 2.6%
over the same period of last year, driven by substantial increase
of gasoline and kerosene consumption while diesel consumption
dropped. Domestic demand for chemicals maintained a steady growth
with ethylene equivalent consumption up by 3.2% compared with the
same period of last year.
The Company, focusing on growth quality and profitability,
through intensified analysis and forecasting of macro-economy and
market trends, actively responded to the fluctuation of
international crude oil price, fully leverage the advantages across
the integrated value chain, kept the cost and expenses under
control, and realised stable operations.
Exploration and Production
The Company took effective measures to cope with low oil prices,
including optimising the exploration and production plans, setting
up flexible investment decision making mechanism and cutting
high-cost crude oil production. In exploration, we attained new
discoveries in marine facies gas fields in western Sichuan. In development, Fuling shale gas and
Yuanba gas projects progressed steadily. In the first three
quarters, oil and gas production of the Company reached 350.82
million barrels of oil equivalent, down by 1.8%, out of which crude
oil output dropped 2.4%, over the same period last year. Impacted
by the sustained low crude oil price, Exploration and Production
Segment had an operating loss of RMB 3.444
billion.
Refining
The Company optimised the crude oil allocation and processing
plans, adjusted product slate and utilisation rate, and increased
the yield of high value-added products, such as high-spec gasoline.
We brought our scale advantages into full play to control the unit
cost. We actively promoted the quality upgrading of refined oil
products and provided high standard fuels to the market. We took
our specialised business advantages to improve our dedicated
marketing network. In the first three quarters, refinery throughput
and refined oil products production increased by 1.4% and 2.9%
respectively, among which gasoline up by 7.1%, jet fuel up by 17.2%
and diesel down by 3.9% over the same period last year. Benefited
by product yield optimisation and the refined oil product pricing
mechanism improvement, Refining Segment had an operating profit of
RMB 14.905 billion, up by 34.3% over
the same period last year.
Marketing and Distribution
In light of the changes in supply and demand, the Company
optimised marketing structure to increase retail volume and single
station throughput. We accelerated the development of the non-fuel
business and its interaction with fuel business, promoted the
industrial cooperation and achieved volume and profit growth. We
accelerated our transformation from an oil products supplier to a
comprehensive service provider by using our network and brand
advantages, upgrading the value creation capabilities of marketing
network. In the first three quarters, total sales volume of refined
oil products was 141 million tonnes, up by 1.9% over the same
period last year. Total domestic sales volume of refined oil
products was 127 million tonnes, up by 0.8%, of which retail volume
reached 88.19 million tonnes, up by 1.9% over the same period last
year. Transaction of non-fuel business reached RMB 19.2 billion, up by 66.7% compared with the
same period last year. The operating profit of Marketing and
Distribution Segment was RMB 21.5
billion, down by 18.7% over the same period last year.
Chemicals
The Company further optimised feedstock and product mix to
achieve more cost-cutting and better efficiency. We put our efforts
in R&D, production and marketing of new products, strengthened
the coordination between R&D, production and marketing and
maintained production volume growth of high value-added products,
achieving better economic performance. The synthetic resin for
special compound rate reached 59%, up by 1% and the synthetic fiber
differentiation rate reached 81.8%, up by 5.7% over the same period
last year. In the first three quarters, ethylene production reached
8.273 million tonnes, up by 5.3% and chemical sales volume was
45.38 million tonnes, up by 2.1% over the same period last year.
Benefited by the structural adjustment, declining feedstock price
and the competitive naphtha-based chemical products, the operating
profit of Chemicals Segment was RMB 15.008
billion, up by RMB 18.524
billion over the same period last year.
Capital Expenditure
The Company's capital expenditures were RMB 38.065 billion in the first three quarters.
Capital expenditure for Exploration and Production Segment was
RMB 20.542 billion, mainly for
development in Shengli oilfield, Tahe oilfield and Sichuan Basin, development of Fuling shale
gas, LNG projects in Guangxi and
Tianjin, pipeline pressure
boosting for Sichuan to East China
Gas Transmission Project, Jinan-to-Qingdao Gas Transmission
PipelineⅡProject and overseas projects. Capital expenditure for
Refining Segment was RMB 4.950
billion, mainly for refinery revamping and gasoline and
diesel quality upgrading projects in Qilu and Jiujiang refineries.
Capital expenditure for Marketing and Distribution Segment was
RMB 7.149 billion, mainly for
developing and renovating service (gas) stations, building oil
products pipelines, oil depots and other storage facilities, and
specific projects for safety hazards rectification and vapor
recovery. We newly developed 272 service (gas) stations in the
first three quarters of 2015. Capital expenditure for Chemicals
Segment was RMB 4.2 billion, mainly
for coal chemical projects and the Wuhan ethylene project. Capital expenditure
for Corporate and Others was RMB 1.224
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
(%)
|
2015
|
2014
|
Exploration and
production
|
Oil and gas
production1
|
million
boe
|
350.82
|
357.41
|
(1.84)
|
Crude oil
production
|
million
barrels
|
262.38
|
268.87
|
(2.41)
|
China
|
million
barrels
|
222.42
|
232.51
|
(4.34)
|
Overseas
|
million
barrels
|
39.96
|
36.36
|
9.90
|
Natural gas
production
|
billion cubic
feet
|
530.14
|
530.80
|
(0.12)
|
Realized crude oil
price
|
USD/barrel
|
48.91
|
94.72
|
(48.36)
|
Realized natural gas
price
|
USD/thousand cubic
feet
|
7.12
|
7.05
|
0.99
|
Refining4
|
Refinery
throughput
|
million
tonnes
|
178.32
|
175.83
|
1.42
|
Gasoline, diesel and
kerosene production
|
million
tonnes
|
112.19
|
108.99
|
2.94
|
|
Gasoline
|
million
tonnes
|
40.85
|
38.13
|
7.13
|
|
Diesel
|
million
tonnes
|
53.32
|
55.50
|
(3.93)
|
|
Kerosene
|
million
tonnes
|
18.01
|
15.37
|
17.18
|
Light chemical
feedstock
|
million
tonnes
|
29.40
|
29.70
|
(1.01)
|
Light products
yield
|
%
|
76.62
|
76.65
|
(0.30)
percentage
points
|
Refining
yield
|
%
|
94.78
|
94.66
|
0.12
percentage
points
|
Marketing and
Distribution
|
Total sales of
refined oil products
|
million
tonnes
|
140.75
|
138.15
|
1.88
|
Total domestic sales
volume of refined oil products
|
million
tonnes
|
126.71
|
125.66
|
0.84
|
|
Retail
|
million
tonnes
|
88.19
|
86.56
|
1.88
|
|
Direct sales &
Wholesale
|
million
tonnes
|
38.52
|
39.10
|
(1.48)
|
Total number of
Sinopec-branded service stations2
|
stations
|
30,500
|
30,551
|
(0.17)
|
|
Company-operated
|
stations
|
30,487
|
30,538
|
(0.17)
|
Annualized average
throughput per station3
|
tonnes/station
|
3,857
|
3,799
|
1.53
|
Chemicals4
|
Ethylene
|
thousand
tonnes
|
8,273
|
7,858
|
5.28
|
Synthetic
resin
|
thousand
tonnes
|
11,265
|
10,748
|
4.81
|
Synthetic
rubber
|
thousand
tonnes
|
668
|
725
|
(7.86)
|
Monomers and polymers
for synthetic fiber
|
thousand
tonnes
|
6,684
|
6,253
|
(6.89)
|
Synthetic
fiber
|
thousand
tonnes
|
967
|
986
|
(1.93)
|
Note:
|
1.
|
Conversion: for
domestic production of crude oil, 1 tonne = 7.1 barrels; for
overseas production of crude oil, 1 tonne=7.21 barrels; for
production of natural gas, 1 cubic meter = 35.31 cubic
feet.
|
2.
|
The number of service
stations in 2014 was the number as at 31 December 2014.
|
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 2015
|
As at 31
December 2014
|
Changes from the
end of the preceding
year to the end of
the reporting period
(%)
|
Total
assets
|
1,404,414
|
1,451,368
|
(3.24)
|
Total equity
attributable to
equity shareholders of
the Company
|
675,496
|
594,483
|
13.63
|
|
|
Nine
Months
|
%
|
2015
|
2014
|
Net cash flow
from
operating activities
|
116,593
|
108,247
|
7.71
|
|
Operating
income
|
1,536,837
|
2,115,648
|
(27.36)
|
Net profit
attributable to
equity shareholders of
the Company
|
25,848
|
51,169
|
(49.49)
|
Net profit
attributable to
equity shareholders of
the Company after
deducting extraordinary
gain/loss items
|
24,677
|
49,317
|
(49.96)
|
Weighted average
return on
net assets (%)
|
4.05
|
8.71
|
(4.66)
percentage
points
|
Basic earnings per
share
(RMB)
|
0.214
|
0.438
|
(51.14)
|
Diluted earnings per
share
(RMB)
|
0.214
|
0.437
|
(51.03)
|
Principal financial data and indicators prepared in
accordance with International Financial Reporting standards
("IFRS")
|
Units:
million
|
Currency:
RMB
|
|
As at 30
September 2015
|
As at 31
December 2014
|
Changes from the
end of the
preceding year to
the end of the
reporting period (%)
|
Total
assets
|
1,404,414
|
1,451,368
|
(3.24)
|
Equity attributable
to
owners of the
Company
|
674,130
|
593,041
|
13.67
|
|
|
Nine
Months
|
%
|
2015
|
2014
|
Net cash generated
from
operating activities
|
116,593
|
108,247
|
7.71
|
|
Operating
profit
|
49,476
|
76,364
|
(35.21)
|
Net profit
attributable to
equity shareholders of
the Company
|
27,030
|
51,798
|
(47.82)
|
Basic earnings per
share
(RMB)
|
0.224
|
0.444
|
(49.55)
|
Diluted earnings per
share
(RMB)
|
0.224
|
0.442
|
(49.32)
|
Return on net assets
(%)
|
4.01
|
8.74
|
(4.73)
Percentage
points
|
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and
chemical companies in China. Its
principal operations include the exploration and production,
pipeline transportation and sale of petroleum and natural gas; the
sale, storage and transportation of petroleum products,
petrochemical products, coal chemical products, synthetic fibre,
fertiliser and other chemical products; the import and export,
including an import and export agency business, of petroleum,
natural gas, petroleum products, petrochemical and chemical
products, and other commodities and technologies; and research,
development and application of technologies and information.
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:
Tel: (86 10) 5996
0028
(852) 2824 2638
Fax: (86 10) 5996
0386
(852) 2824 3669
Email:
ir@sinopec.com
Media Inquiries:
Tel: (86 10) 5996 0028
(852) 2522 1838
Fax: (86 10) 5996 0386
(852) 2521 9955
Email: sinopec@prchina.com.hk
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SOURCE China Petroleum & Chemical Corporation