BEIJING, Oct. 27, 2016 /PRNewswire/ -- China Petroleum
& Chemical Corporation ("Sinopec Corp." or the "Company")
(HKEX: 386; SSE: 600028; NYSE and LSE: SNP) today announced its
financial results for the first three quarters ended 30 September 2016.
Financial Highlights:
- In accordance with the International Financial Reporting
Standards ("IFRS"), the Company's operating profit reached
RMB 51.430 billion, up 4.2%
year-on-year. Net profit attributable to owners of the Company was
RMB 30.107 billion, representing an
increase of 11.2% year-on-year. Basic earnings per share were
RMB 0.249, up 11.2%
year-on-year.
- In accordance with the PRC Accounting Standards for Business
Enterprises ("ASBE"), the Company's revenue amounted to
RMB 1,363.945 billion, down 11.3%
year-on-year. Net profit attributable to equity shareholders of the
Company was RMB 29.166 billion, up
12.6% year-on-year. Basic earnings per share were RMB 0.241, up 12.6% year-on-year.
- The Company's cash flow and financial position continued to
improve during the first three quarters. In accordance with IFRS,
the Company's net cash flow from operating activities was
RMB 131.700 billion, up 13.3%
year-on-year. Cash and cash equivalents at the end of the period
were RMB 81.149 billion.
Liabilities-to-assets ratio at the end of the third quarter was
42.53%, down 3.01 percentage points from the year end of 2015.
Business Review:
For first three quarters in 2016, the Company focused on growth
quality and profitability and further enhanced structure adjustment
and management. It optimised market-oriented operation, fully
leveraged advantages across the integrated value chain, coordinated
all aspects of work and overcame the impact of natural disasters,
obtained fine operating results.
Exploration and Production: To address the challenge of
low oil prices, the Company effectively optimised exploration and
production activities and achieved positive results. In
exploration, through technological progress and efficiency
promotion, it attained new discoveries in Tahe of Xinjiang
Autonomous Region, Beibu Gulf in Guangxi and Yin-E Basin in Nei Mongol
Autonomous Region and new natural gas findings in west Sichuan and Erdos Basin. In development, Phase
Two shale gas development project in Fuling Shale Gas field further
facilitated its shale gas development. In production, the Company
strengthened cost discipline and reduced high-cost oil production.
In the first three quarters, oil and gas production of the Company
was 322.29 million barrels of oil equivalent, down 8.13%
year-on-year. Out of which, crude oil output dropped by 12.58% from
a year ago while natural gas output grew by 5.09%. Earnings before
interest and taxes (EBIT) of the Exploration and Production segment
were RMB -30.865 billion.
Refining: The Company actively responded to challenges
arising from sharp increase of throughput from independent
refineries, ample market supply and changes in refined oil products
demand. It further optimised its refined oil product mix by
increasing production of gasoline and kerosene, reduced its crude
purchasing costs, kept steady unit load and pressed ahead with
refined oil products quality upgrading. Based on customer need, it
strengthened marketing service of other refined oil products, such
as asphalt and LPG. In the first three quarters, refinery
throughput and refined oil products production decreased by 1.72%
and 1.04% year-on-year respectively, among which gasoline up 3.04%,
jet fuel up 4.28% and diesel down 5.95% over the same period last
year. EBIT of the Refining segment were RMB
43.504 billion, up 183.12% over the same period last
year.
Marketing and Distribution: In light of ample domestic
fuel supply and strong competition in the market, the Company
coordinated and optimised internal and external resources, and
adjusted marketing efforts, achieving growth in both total sales
volume and retail sales volume, especially in retail scale of
premium products with high octane number. It further improved its
product pipeline network and accelerated the building of service
stations. Non-fuel business kept fast development momentum owing to
synergy between fuel and non-fuel businesses. In the first three
quarters, total sales volume of refined oil products was 146
million tonnes, up by 3.53% over the same period last year. Total
domestic sales volume of refined oil products was 130 million
tonnes, up by 2.27% year-on-year. Transaction of non-fuel business
reached RMB 26.920 billion, up 40.21%
when compared with the same period last year. EBIT of the Marketing
and Distribution segment were RMB 25.839
billion, up 14.50% over the same period last year.
Chemicals: The Company further optimised feedstock and
product mix, as well as facilities structure. It further lowered
feedstock cost for ethylene, strengthened the integration among
production, sales, product R&D and customer need and
continuously optimised operations of manufacturing facilities,
which has achieved great results. It strengthened R&D,
production and marketing capabilities of new high value-added
products, with performance polymer ratio reaching 59.7% and
differential ratio of synthetic fibre reaching 84.8%. It also
focused on improving customer services to enhance customer loyalty.
At the same time, it held firm to its strategies of low inventories
and customised marketing. In the first three quarters, ethylene
production reached 8.115 million tonnes, down 1.91% year-on-year.
Chemical sales volume was 50.46 million tonnes, up 11.19% over the
same period last year. EBIT of the Chemicals segment were
RMB 19.135 billion, up 8.95% over the
same period last year.
Capital Expenditures: The Company focused on growth
quality and profitability, strengthened the management of
investment return and optimisation of investment project. Its
capital expenditures were approximately RMB
24.969 billion in the first three quarters. Capital
expenditures for the Exploration and Production segment were
RMB 9.206 billion, mainly for Phase
Two of shale gas development in Fuling, LNG terminals in
Guangxi and Tianjin, and Jinan-Qingdao
gas pipeline II. Captial expenditures for the Refining segment were
RMB 4.995 billion, mainly for
gasoline and diesel quality upgrading and refinery optimisation and
revamping projects. Capital expenditures for the Marketing and
Distribution segment were RMB 5.983
billion, mainly for renovation of service stations, refined
oil products pipelines, oil depots and safety hazard rectification
projects. Capital expenditures for the Chemical segment were
RMB 3.967 billion, mainly for
feedstock and product optimisation projects and coal chemical
projects. Capital expenditures for corporate and others were
RMB 818 million, mainly for R&D
facilities and IT application projects.
Summary of Principal Operating Results for the First Three
Quarters
Operating
data
|
Unit
|
For nine-month
period ended 30 September
|
Changes
(%)
|
2016
|
2015
|
Exploration and
production
|
Oil and gas
production1
|
million
boe
|
322.29
|
350.82
|
(8.13)
|
Crude oil
production
|
million
barrels
|
229.36
|
262.38
|
(12.58)
|
China
|
million
barrels
|
191.26
|
222.42
|
(14.01)
|
Overseas
|
million
barrels
|
38.10
|
39.96
|
(4.65)
|
Natural gas
production
|
billion cubic
feet
|
557.15
|
530.14
|
5.09
|
Realised crude oil
price
|
USD/barrel
|
35.44
|
48.91
|
(27.54)
|
Realised natural gas
price
|
USD/thousand cubic
feet
|
5.48
|
7.12
|
(23.03)
|
Refining2
|
Refinery
throughput
|
million
tonnes
|
175.25
|
178.32
|
(1.72)
|
Gasoline, diesel and
kerosene production
|
million
tonnes
|
111.02
|
112.19
|
(1.04)
|
|
Gasoline
|
million
tonnes
|
42.09
|
40.85
|
3.04
|
|
Diesel
|
million
tonnes
|
50.15
|
53.32
|
(5.95)
|
|
Kerosene
|
million
tonnes
|
18.78
|
18.01
|
4.28
|
Light chemical
feedstock
|
million
tonnes
|
28.45
|
29.40
|
(3.23)
|
Light products
yield
|
%
|
76.35
|
76.62
|
(0.27)
percentage
points
|
Refining
yield
|
%
|
94.47
|
94.78
|
(0.31) percentage
points
|
Marketing and
Distribution
|
Total sales of
refined oil products
|
million
tonnes
|
145.72
|
140.75
|
3.53
|
Total domestic sales
volume of refined oil products
|
million
tonnes
|
129.58
|
126.71
|
2.27
|
|
Retail
|
million
tonnes
|
89.79
|
88.19
|
1.81
|
|
Direct sales &
Wholesale
|
million
tonnes
|
39.79
|
38.52
|
3.30
|
Total number of
Sinopec-branded service stations3
|
stations
|
30,721
|
30,560
|
0.53
|
|
Company-operated
|
stations
|
30,708
|
30,547
|
0.53
|
Annualised average
throughput per station4
|
tonnes/station
|
3,899
|
3,857
|
1.09
|
Chemical2
|
Ethylene
|
thousand
tonnes
|
8,115
|
8,273
|
(1.91)
|
Synthetic
resin
|
thousand
tonnes
|
11,138
|
11,265
|
(1.13)
|
Synthetic
rubber
|
thousand
tonnes
|
619
|
668
|
(7.34)
|
Monomers and polymers
for synthetic fibre
|
thousand
tonnes
|
6,830
|
6,684
|
2.18
|
Synthetic
fibre
|
thousand
tonnes
|
934
|
967
|
(3.41)
|
Note:
1. Conversion: in the first three quarters of 2016, for
domestic production of crude oil, 1 tonne = 7.10 barrels; for
overseas production of crude oil, 1 tonne=7.20 barrels; for
production of natural gas, 1 cubic meter = 35.31 cubic feet.
2. Including 100% production of domestic joint
ventures.
3. The number of service stations in 2015 was the
number as of 31 December 2015.
4. Throughput per service station data was
annualised.
|
Appendix
Principal financial data and indicators
Principal financial
data and indicators prepared in accordance with the PRC Accounting
Standards for Business Enterprises (ASBE)
|
RMB
million
|
|
As of 30 September
2016
|
As of 31 December
2015
|
Changes from the end
of the preceding year to the end of the reporting period
(%)
|
Total
assets
|
1,413,148
|
1,447,268
|
(2.4)
|
Total equity
attributable to equity shareholders of the Company
|
692,711
|
677,538
|
2.2
|
|
First Nine
Months
|
Changes over the same
period of the preceding year (%)
|
2016
|
2015
|
Net cash flow from
operating activities
|
131,700
|
116,239
|
13.3
|
|
Operating
income
|
1,363,945
|
1,537,956
|
(11.3)
|
Net profit
attributable to equity shareholders of the Company
|
29,166
|
25,893
|
12.6
|
Net profit
attributable to equity shareholders of the Company excluding
extraordinary gains and losses
|
28,337
|
24,722
|
14.6
|
Weighted average
return on net assets (%)
|
4.26
|
4.07
|
0.19
percentage
points
|
Basic earnings per
share (RMB)
|
0.241
|
0.214
|
12.6
|
Diluted earnings per
share (RMB)
|
0.241
|
0.214
|
12.6
|
Extraordinary
(gain)/loss items
|
Q3 2016
RMB
million
|
First Nine Months in
2016
RMB
million
|
Loss on disposal of
non-current assets
|
112
|
105
|
Donations
|
16
|
64
|
Gain on holding and
disposal of various investments
|
371
|
(471)
|
Other extraordinary
income and expenses, net
|
(398)
|
(1,007)
|
Subtotal
|
101
|
(1,309)
|
Tax effect
|
8
|
276
|
Total
|
109
|
(1,033)
|
Equity shareholders of
the Company
|
131
|
(829)
|
Minority
interests
|
(22)
|
(204)
|
Principal financial
data and indicators prepared in accordance with International
Financial Reporting standards (IFRS)
|
RMB
million
|
|
As of 30 September
2016
|
As of 31
December
2015
|
Changes from the end
of the preceding year to the end of the reporting period
(%)
|
Total
assets
|
1,413,148
|
1,447,268
|
(2.4)
|
Equity attributable
to owners of the Company
|
691,447
|
676,197
|
2.3
|
|
First Nine
Months
|
Changes over the same
period of the preceding year (%)
|
2016
|
2015
|
Net cash generated
from operating activities
|
131,700
|
116,239
|
13.3
|
|
Operating
profit
|
51,430
|
49,376
|
4.2
|
Net profit
attributable to equity shareholders of the Company
|
30,107
|
27,075
|
11.2
|
Basic earnings per
share (RMB)
|
0.249
|
0.224
|
11.2
|
Diluted earnings per
share (RMB)
|
0.249
|
0.224
|
11.2
|
Return on net assets
(%)
|
4.35
|
4.00
|
0.35
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.
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
|
Tel: (86 10) 5996
0028
|
Fax: (86 10) 5996
0386
|
Fax: (86 10) 5996
0386
|
Email:
ir@sinopec.com
|
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
|
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SOURCE China Petroleum & Chemical Corporation