BEIJING, April 28, 2016 /PRNewswire/ -- China Petroleum
& Chemical Corporation ("Sinopec Corp." or the "Company")(HKEX:
386; SSE: 600028; NYSE: SNP) today announced its unaudited results
for the three months ended 31 March
2016.
Financial Highlights:
- Amid low oil prices, the Company's mid- and down-stream
segments became the main profit growth drivers. Operating profits
from Refining, Marketing and Distribution, and Chemical segments
all recorded significant growth compared to the same period last
year, reflecting its integrated advantages.
- In accordance with the International Financial Reporting
Standards (IFRS), the Company's operating profit was RMB 13.06 billion, up by 153.4% year-on-year.
Profit for the period was RMB 9.56
billion, increased by 267.7% year-on-year. Net profit
attributable to owners of the Company was RMB 6.66 billion, increased by 206.8%
year-on-year. Basic earnings per share (EPS) were RMB 0.055.
- In accordance with China Accounting Standards for Business
Enterprises (ASBE), the Company's operating profit was RMB 12.31 billion, significantly increased by
four fold year-on-year. Net profit was RMB
9.03 billion, increased by 355.8% year-on-year. Net profit
attributable to equity shareholders of the Company was RMB 6.19 billion, increased by 267.1%
year-on-year. Basic earnings per share (EPS) were RMB 0.051.
- The Company's financial position continued to improve during
the first quarter. In accordance with IFRS, the Company's net cash
flow from operating activities was RMB 34.35
billion, increased by 414.0% year-on-year. Net cash used in
investing activities decreased RMB 11.81
billion compared to same period last year. Cash and cash
equivalents at the end of the first quarter was RMB 63.15 billion. Liabilities-to-assets ratio at
the end of the first quarter was 43.11%, down by 2.55 percentage
points from the year end of 2015.
Business Review:
In the first quarter of 2016, focusing on the growth of quality
and profitability, the Company intensified its evaluation of
macro-economy and market trends and actively responded to these
changes. The Company emphasised on reform and innovation, stringent
management and tight coordination of all aspects of work.
Exploration and Production:
Through projects optimization and implementation of a flexible
investment decision-making mechanism in response to oil price
fluctuations, the Company reduced its high-cost oil production. In
exploration, the Company actively carried forward high-efficiency
exploration activities, making a number of discoveries in
Sichuan Basin, Ordos Basin, and
Central Tahe Basin. In terms of development, the Company achieved
steady progress in development of Fuling shale gas field (phase
II), optimised development programs in mature oilfields and
increased development in frontier acreages. In the first quarter,
the oil and gas production of the Company was 114.7 million barrels
of oil equivalent, declined by 2.7%, out of which crude oil output
down by 9.3% while natural gas up by 16.7%, compared with the same
period last year. Impacted by the sustained low crude oil prices,
Exploration and Production Segment had an operating loss of
RMB 12.53 billion.
Refining:
The Company adjusted the product mix in response to market
demand by increasing production of gasoline and kerosene,
maintained safe and stable refinery operations and upgraded refined
oil products quality as scheduled. The Company optimised resource
allocation, controlled costs and took advantage of its strong
economies of scale. By tapping well-established advantages in
specialisation, the Company improved its profit margins in LPG,
etc. In the first quarter, refinery throughput decreased by 2.4%
and refined oil products production dropped by 1.4%, among which
gasoline up by 4.7%, jet fuel up by 4.5% and diesel down by 8.0%
over the same period last year. Benefited from product mix
optimisation and the refined oil product pricing mechanism
improvement, Refining Segment had an operating profit of
RMB 13.44 billion, a reversal from
the loss-making situation in the same period last year.
Marketing and Distribution:
In response to the changes in supply and demand of refined oil
products, the Company optimised resource allocation and adjusted
its marketing strategies and promoted the sales of high-octane
gasoline and high-value-added products. In the transformation from
a fuel supplier to a comprehensive service provider, the Company
optimised marketing network and reinforced mutual promotion between
fuel and non-fuel businesses. As a result, total retail volume and
throughput per station sustained growth despite of intense market
competition. In the first quarter, total sales volume of refined
oil products was 47.21 million tonnes, up by 1.6% over the same
period last year. Total domestic sales volume of refined oil
products was 43.29 million tonnes, up by 3.0%, of which retail
volume reached 29.66 million tonnes, up by 2.6% over the same
period last year. Transaction of non-fuel business reached
RMB 8.91 billion, up by 41.4%
compared with the same period last year. The operating profit of
Marketing and Distribution Segment was RMB
7.69 billion, up by 45.6% compared with the same period last
year.
Chemicals:
The Company fine-tuned its feedstock mix to lower costs and
enhanced the operations of its production facilities by adjusting
utilisation rates based on marginal profitability, while keeping
sustained safe and stable operations. The Company strengthened the
links among research and development, production, marketing and
sales of new products, and increased production of high-value-added
products tailored to market demands. In the first quarter, ethylene
production reached 2.82 million tonnes, up by 2.0% and chemical
sales volume was 15.62 million tonnes, up by 6.7% over the same
period last year. Benefited from feedstock mix and product slate
adjustment, decreased feedstock costs and upgraded competitiveness
of naphtha-based chemicals, the operating profit of Chemicals
Segment was RMB 4.58 billion, up by
49.3% compared with the same period last year.
Capital expenditure:
The Company's capital expenditures were RMB 5.53 billion in the first quarter. Capital
expenditures for exploration and production segment were
RMB 1.34 billion, mainly for
development in Fuling shale gas field, construction of LNG
terminals in Guangxi and
Tianjin, and construction of
long-distance gas pipelines such as the Jinan-Qingdao
gas pipeline (phase II), as well as development in overseas
projects. Capital expenditures for refining segment were
RMB 1.40 billion, mainly for gasoline
and diesel quality upgrading projects and refinery revamping.
Capital expenditures for marketing and distribution segment were
RMB 1.23 billion, mainly for
revamping service stations and building refined oil product
pipelines, oil depots and storage facilities, as well as for hazard
rectification. Capital expenditures for chemicals segment were
RMB 1.53 billion, mainly for coal
chemical projects, comprehensive utilisation of resources project
and auxiliary facilities construction project.
Summary of Principal Operating Results for the First
Quarter
Operating
data
|
Unit
|
For three-month
period ended 31 March
|
Changes
(%)
|
2016
|
2015
|
Exploration and
production
|
Oil and gas
production1
|
million
boe
|
114.68
|
117.82
|
(2.67)
|
Crude oil
production
|
million
barrels
|
79.42
|
87.55
|
(9.29)
|
China
|
million
barrels
|
66.35
|
74.01
|
(10.35)
|
Overseas
|
million
barrels
|
13.07
|
13.54
|
(3.47)
|
Natural gas
production
|
billion cubic
feet
|
211.36
|
181.06
|
16.73
|
Realized crude oil
price
|
USD/barrel
|
27.06
|
46.22
|
(41.45)
|
Realized natural gas
price
|
USD/thousand cubic
feet
|
5.47
|
7.94
|
(31.11)
|
Refining2
|
Refinery
throughput
|
million
tonnes
|
57.18
|
58.58
|
(2.39)
|
Gasoline, diesel and
kerosene production
|
million
tonnes
|
36.33
|
36.85
|
(1.41)
|
|
Gasoline
|
million
tonnes
|
13.92
|
13.29
|
4.74
|
|
Diesel
|
million
tonnes
|
16.32
|
17.74
|
(8.00)
|
|
Kerosene incl. jet
fuel
|
million
tonnes
|
6.08
|
5.82
|
4.47
|
Light chemical
feedstock
|
million
tonnes
|
9.74
|
9.43
|
3.29
|
Light product
yield
|
%
|
77.05
|
76.68
|
0.37
percentage
points
|
Refining
yield
|
%
|
94.93
|
94.69
|
0.24 percentage
points
|
Marketing and
Distribution
|
Total sales of
refined oil products
|
million
tonnes
|
47.21
|
46.49
|
1.55
|
Total domestic sales
of refined oil products
|
million
tonnes
|
43.29
|
42.05
|
2.95
|
|
Retail
|
million
tonnes
|
29.66
|
28.90
|
2.63
|
|
Direct sales &
Distribution
|
million
tonnes
|
13.63
|
13.15
|
3.65
|
Total number of
Sinopec-branded service stations3
|
stations
|
30,636
|
30,560
|
0.25
|
|
Company-operated
|
stations
|
30,623
|
30,547
|
0.25
|
Throughput per
station4
|
tonnes
|
3,879
|
3,786
|
2.46
|
Chemicals2
|
Ethylene
|
thousand
tonnes
|
2,823
|
2,768
|
1.99
|
Synthetic
resin
|
thousand
tonnes
|
3,840
|
3,786
|
1.43
|
Synthetic
rubber
|
thousand
tonnes
|
205
|
213
|
(3.76)
|
Monomers and polymers
for synthetic fiber
|
thousand
tonnes
|
2,328
|
2,128
|
9.40
|
Synthetic
fiber
|
thousand
tonnes
|
311
|
311
|
0
|
|
|
|
|
|
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. Including 100%
production of joint ventures.
3. The number of
service stations in 2015 was the number as of 31 December
2015.
4. Throughput per
station was annualized.
|
Appendix
Principal financial data and indicators
Principal financial data and indicators prepared in accordance
with China
Accounting
Standards for Business Enterprises (ASBE)
Units: RMB
million
|
|
As of 31 March
2016
|
As of 31 December
2015
|
Changes from the
end of the preceding year to the end of the reporting period
(%)
|
Total
assets
|
1,397,688
|
1,443,129
|
(3.1)
|
Total equity
attributable to equity shareholders of the Company
|
686,286
|
675,370
|
1.6
|
|
Three
months
|
Changes over the
same period of the preceding year (%)
|
2016
|
2015
|
Net cash flow from
operating activities
|
34,348
|
6,682
|
414.0
|
|
Operating
income
|
413,790
|
478,241
|
(13.5)
|
Net profit
attributable to equity shareholders of the Company
|
6,185
|
1,685
|
267.1
|
Net profit
attributable to equity shareholders of the Company excluding
extraordinary gains and losses
|
6,404
|
1,336
|
379.3
|
Weighted average
return on net assets (%)
|
0.91
|
0.27
|
0.64
percentage
points
|
Basic earnings per
share (RMB)
|
0.051
|
0.014
|
264.3
|
Diluted earnings per
share (RMB)
|
0.051
|
0.014
|
264.3
|
Extraordinary
gain/loss items
|
During the
reporting period
|
(gains)/losses(RMB
million)
|
Net loss on disposal
of non-current assets
|
5
|
Donations
|
6
|
Government
grants
|
(229)
|
Loss on holding and
disposal of various investments
|
155
|
Other extraordinary
income and expenses, net
|
327
|
Subtotal
|
264
|
Tax effect
|
(31)
|
Total
|
233
|
Equity shareholders of
the Company
|
219
|
Minority
interests
|
14
|
Principal financial data and indicators prepared in accordance
with International Financial Reporting standards (IFRS)
Units: RMB
million
|
|
As of 31 March
2016
|
As of
31 December 2015
|
Changes from the
end of the preceding year to the end of the reporting period
(%)
|
Total
assets
|
1,397,688
|
1,443,129
|
(3.1)
|
Total equity
attributable to owners of the Company
|
684,972
|
674,029
|
1.6
|
|
Three
months
|
Changes over the
same period of the preceding year (%)
|
2016
|
2015
|
Net cash generated
from operating activities
|
34,348
|
6,682
|
414.0
|
|
Operating
profit
|
13,057
|
5,153
|
153.4
|
Net profit
attributable to owners of the Company
|
6,663
|
2,172
|
206.8
|
Basic earnings per
share (RMB)
|
0.055
|
0.018
|
205.6
|
Diluted earnings per
share (RMB)
|
0.055
|
0.018
|
205.6
|
Return on net assets
(%)
|
0.97
|
0.32
|
0.65
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 ransportation 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.
Investor
Inquiries:
|
Media
Inquiries:
|
Beijing
|
|
Tel:(86 10) 5996
0028
|
|
Fax:(86 10) 5996
0386
|
|
Email:ir@sinopec.com
|
|
|
|
Hong
Kong
|
|
Tel:(852) 2824
2638
|
Tel:(852) 2522
1838
|
Fax:(852) 2824 3669
|
Fax:(852) 2521
9955
|
Email:ir@sinopechk.com
|
Email:sinopec@prchina.com.hk
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sinopec-2016-first-quarters-net-profit-increases-over-200-yoy-300259292.html
SOURCE China Petroleum & Chemical Corporation