BEIJING, April
26, 2018 /PRNewswire/ -- China Petroleum & Chemical
Corporation ("Sinopec Corp." or the "Company")(HKEX: 00386;
SSE: 600028; NYSE: SNP) today announced its unaudited results for
the three months ended 31 March
2018.
Financial Highlights:
- In accordance with the International Financial Reporting
Standards (IFRS), the Company's operating profit was RMB 29.218 billion, up 14.9% year-on-year. Net
profit attributable to owners of the Company was RMB 19.306 billion, increased by 12.3%
year-on-year. Basic earnings per share ("EPS") were RMB 0.159, increased by 12.0% year-on-year.
- In accordance with China Accounting Standards for Business
Enterprises ("ASBE"), the Company's operating income was
RMB 621.251 billion, increased by
6.7% year-on-year. Net profit attributable to equity shareholders
of the Company was RMB 18.770
billion, increased by 12.8% year-on-year. Basic earnings per
share ("EPS") were RMB 0.155,
increased by 13.1% year-on-year.
- The Company's financial position continued to improve during
the first quarter. In accordance with IFRS, cash and cash
equivalents at the end of the first quarter was RMB 129.788 billion. Liabilities-to-assets ratio
at the end of the first quarter was 44.3%.
Business Review:
In the first quarter of 2018, the global economy recovered
gradually, and Chinese economy maintained a momentum of steady and
sound growth with gross domestic product (GDP) up by 6.8%.
International crude oil price fluctuated at a narrow range and
increased slightly. The Company pursued supply-side structural
reform as main task, focused on improving the quality and
efficiency of our operations, upheld the policy of Reform,
Management, Innovation and Development, and strengthened efforts on
cost reduction, market expansion, structural adjustment, reform
promotion, management reinforcement, which helped deliver solid
operating results.
Exploration and Production:
The Company constantly strengthened measures on high-efficiency
exploration activities and adopted profit-oriented approaches on
development. In exploration, we made new progress in northeast
Sichuan area in Sichuan Basin and in Shunbei area in Xinjiang
Tarim Basin, strengthened efforts in E&P in deep, normal
pressure and new strata of shale gas formations, and found new
discoveries in Weirong shale gas field. In oil and gas development,
we accelerated crude oil reserve evaluation, promoted capacity
building in new areas of crude oil and natural gas; constantly
advanced progressive exploration and reservoir appraisal of natural
gas. In the first quarter, the oil and gas production of the
Company was 111.33 million barrels of oil equivalent, among which
domestic crude oil increased by 1.3% while natural gas increased by
0.6%, compared with the same period of last year. Exploration and
Production Segment had an operating loss of RMB 0.318 billion, realising a significant
reduction in loss by RMB 5.446
billion compared with the same period of last year.
Exploration and
Production
|
Unit
|
For three-month
period
ended 31
March
|
Changes
|
2018
|
2017
|
(%)
|
Oil and gas
production1
|
million
boe
|
111.33
|
111.93
|
(0.5)
|
Crude oil
production
|
million
barrels
|
71.35
|
72.08
|
(1.0)
|
China
|
million
barrels
|
61.43
|
60.67
|
1.3
|
Overseas
|
million
barrels
|
9.92
|
11.41
|
(13.1)
|
Natural gas
production
|
billion cubic
feet
|
239.83
|
238.35
|
0.6
|
Realised crude oil
price
|
USD/barrel
|
59.8
|
49.1
|
21.8
|
Realised natural gas
price
|
USD/thousand cubic
feet
|
6.28
|
5.00
|
25.6
|
Note 1
Conversion: for domestic production of crude oil, 1 tonne =
7.10 barrels; for overseas production of crude oil, 1 tonne=7.21
barrels; for production of natural gas, 1 cubic meter = 35.31 cubic
feet.
|
Refining:
The Company comprehensively optimised the operation of
production plans. We proactively adjusted product structure,
improved production volume of gasoline, jet-fuel and other high
value-added products, the ratio of diesel to gasoline decreased to
1.06. At the same time, we actively implemented refined oil product
quality upgrading to ensure the supply of high quality refined oil
products, optimised crude oil procurement and resource distribution
to realise cost control. In the first quarter, refinery throughput
grew by 2.1% and refined oil products production grew by 2.6%,
among which gasoline up by 4.7%, kerosene up by 8.6% and diesel
down by 1.7% over the same period of last year. Refining Segment
realised an operating profit of RMB 19.007
billion.
Refining2
|
Unit
|
For three-month
period ended 31
March
|
Changes
(%)
|
2018
|
2017
|
Refinery
throughput
|
million
tonnes
|
60.16
|
58.95
|
2.1
|
Gasoline, diesel and
kerosene production
|
million
tonnes
|
37.98
|
37.03
|
2.6
|
Gasoline
|
million
tonnes
|
14.98
|
14.31
|
4.7
|
Diesel
|
million
tonnes
|
15.93
|
16.21
|
(1.7)
|
Kerosene
|
million
tonnes
|
7.07
|
6.51
|
8.6
|
Light chemical
feedstock
|
million
tonnes
|
9.94
|
9.97
|
(0.3)
|
Light product
yield
|
%
|
76.22
|
76.30
|
(0.08) Percentage
points
|
Refining
yield
|
%
|
95.23
|
95.29
|
(0.06) Percentage
points
|
Note 2
Including 100% production of domestic joint ventures.
|
Marketing and Distribution:
Faced with intensified competition, the Company took an active
part in coping with marketing challenges. We gave full play of our
advantages in integrated operation and marketing network by
coordinating internal and external resources, optimising resource
distribution, and improving capability of service, and realised
increase in both total domestic sales and retail volume of refined
oil products. We optimised the distribution network, improved
environment protection measures for our service stations, and
revamped the storage and transportation facilities of refined oil
products to improve the marketing network. We further promoted
integration of fuel business and non-fuel business, optimised the
system for self-owned brand products and accelerated the
construction of integrated service stations. Our non-fuel business
kept increasing rapidly. In the first quarter, total sales volume
of refined oil products was 47.21 million tonnes, among which
domestic sales volume recorded 43.35 million tonnes with an
increase of 3.4% over the same period of last year. The operating
revenues of non-fuel business reached RMB
8.726 billion, up by 21.8% compared with the same period of
last year. The Marketing and Distribution Segment realised an
operating profit of RMB 8.925
billion.
Marketing and
Distribution
|
Unit
|
For three-month
period
ended 31 March
|
Changes
(%)
|
2018
|
2017
|
Total sales volume of
refined oil products
|
million
tonnes
|
47.21
|
47.44
|
(0.5)
|
Total domestic sales
of refined oil products
|
million
tonnes
|
43.35
|
41.94
|
3.4
|
Retail
|
million
tonnes
|
29.46
|
28.63
|
2.9
|
Direct sales &
Distribution
|
million
tonnes
|
13.89
|
13.31
|
4.4
|
Total number of
Sinopec-branded service stations3
|
stations
|
30,648
|
30,633
|
-
|
Company-operated
|
stations
|
30,642
|
30,627
|
-
|
Throughput per
station4
|
tonnes
|
3,846
|
3,725
|
3.2
|
Note 3 The
number of service stations in 2017 was the number as of 31 December
2017.
Note 4
Throughput per station was annualised.
|
Chemicals:
The Company further optimised product slate, produced
customer-oriented and high value-added products. We optimised
feedstock mix to reduce cost. We intensified efforts on R&D,
production and promotion of high-value-added new products, with the
differential ratio of synthetic fiber reaching 89.8% and the ratio
of new synthetic resin products and performance compound reaching
63.0%. We put more effort into marketing development and promoted
fine chemical products marketing and targeted marketing service. In
the first quarter, ethylene production reached 2.995 million
tonnes, up by 1.8% and chemical sales volume was 20.458 million
tonnes, up by 10.0% over the same period of last year. The
Chemicals Segment realised an operating profit of RMB 8.452 billion.
Chemicals5
|
Unit
|
For three-month
period
ended 31 March
|
Changes
(%)
|
2018
|
2017
|
Ethylene
|
thousand
tonnes
|
2,995
|
2,941
|
1.8
|
Synthetic
resin
|
thousand
tonnes
|
4,117
|
4,074
|
1.1
|
Synthetic
rubber
|
thousand
tonnes
|
199
|
227
|
(12.3)
|
Monomers and polymers
for synthetic fiber
|
thousand
tonnes
|
2,246
|
2,424
|
(7.3)
|
Synthetic
fiber
|
thousand
tonnes
|
296
|
308
|
(3.9)
|
Note 5
Including 100% production of domestic joint ventures.
|
|
|
|
|
|
|
Capital Expenditure:
In the first quarter, the total capital expenditure was
RMB 6.414 billion. Capital
expenditures for Exploration and Production Segment were
RMB 1.597 billion, mainly for
capacity construction of shale gas, Hangjinqi natural gas and
Shunbei crude oil, as well as for construction of Wen 23 Gas
Storage Project, phaseⅡpressure boosting project of Sichuan-to-East China Pipeline, phaseⅠproject
of Xinqi Pipeline and overseas oil and gas projects. Capital
expenditures for Refining Segment were RMB
1.269 billion, mainly for Zhongke integrated refining and
chemical project, structure adjustment in Zhenhai, Maoming and
Tianjin subsidiaries, and GB VI
standard gasoline and diesel quality upgrading. Capital
expenditures for Marketing and Distribution Segment were
RMB 2.273 billion, mainly for
revamping service stations, construction for pipelines from
Zhanjiang to Beihai and Jingmen to Xiangyang etc., as well as
building depots and storage and rectifying safety and environmental
hazards. Capital expenditures for Chemicals Segment were
RMB 1.158 billion, mainly for Zhongke
integrated refining and chemical project, the high-efficiency and
environmental- friendly aromatics project (phaseⅡ) in Hainan refinery, and other resources
integrated utilisation projects as well as product structure
adjustment projects. Capital expenditures for Corporate and Others
were RMB 117 million, mainly for
R&D facilities and information technology application
projects.
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
Items
|
As of 31 March
2018
|
As of 31 December
2017
|
Changes from the
end of the preceding year to the end of the reporting period
(%)
|
Total
assets
|
1,572,527
|
1,595,504
|
(1.4)
|
Total equity
attributable to equity shareholders of the Company
|
745,799
|
727,244
|
2.6
|
Items
|
Three
months
|
Changes over the
same period of the preceding year (%)
|
2018
|
2017
|
Net cash flow from
operating activities
|
12,052
|
13,276
|
(9.2)
|
|
Operating
income
|
621,251
|
582,185
|
6.7
|
Net profit
attributable to equity shareholders of the Company
|
18,770
|
16,633
|
12.8
|
Net profit
attributable to equity shareholders of the Company excluding
extraordinary gains and losses
|
17,982
|
16,540
|
8.7
|
Weighted average
return on net assets (%)
|
2.55
|
2.31
|
0.24 percentage
points
|
Basic earnings per
share (RMB)
|
0.155
|
0.137
|
13.1
|
Diluted earnings per
share (RMB)
|
0.155
|
0.137
|
13.1
|
Extraordinary
gain/loss items
|
During the
reporting period
|
(gains)/losses(RMB
million)
|
Net loss on disposal
of non-current assets
|
18
|
Donations
|
2
|
Government
grants
|
(692)
|
Gains on holding and
disposal of various investments
|
(261)
|
Other extraordinary
income and expenses, net
|
(181)
|
Subtotal
|
(1,114)
|
Tax effect
|
278
|
Total
|
(836)
|
Equity shareholders of
the Company
|
(788)
|
Minority
interests
|
(48)
|
2.1.2 Principal financial data and indicators prepared in
accordance with International Financial Reporting Standards (IFRS)
Units: RMB million
Items
|
As of 31
March
2018
|
As of 31
December
2017
|
Changes from the
end of the preceding year to the end of the reporting period
(%)
|
Total
assets
|
1,572,527
|
1,595,504
|
(1.4)
|
Total equity
attributable to owners of the Company
|
744,688
|
726,120
|
2.6
|
Items
|
Three
months
|
Changes over the
same period of the preceding year (%)
|
2018
|
2017
|
Net cash generated
from operating activities
|
12,052
|
13,276
|
(9.2)
|
|
Operating
profit
|
29,218
|
25,435
|
14.9
|
Net profit
attributable to owners of the Company
|
19,306
|
17,199
|
12.3
|
Basic earnings per
share (RMB)
|
0.159
|
0.142
|
12.0
|
Diluted earnings per
share (RMB)
|
0.159
|
0.142
|
12.0
|
Return on net assets
(%)
|
2.59
|
2.36
|
0.23 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 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 Corp. 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:(8610) 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