BEIJING, Oct. 30, 2018 /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 ended 30 September 2018.
Financial Highlights:
- In accordance with the International Financial Reporting
Standards (IFRS), the Company's operating profit was RMB 85.865 billion, up 54.0% year-on-year; net
profit attributable to equity shareholders of the Company was
RMB 60.155 billion, up 52.7%
year-on-year; basic earnings per share ("EPS") were RMB 0.497, up 52.7% year-on-year.
- In accordance with China Accounting Standards for Business
Enterprises ("ASBE"), the Company's operating income was
RMB 2,072.970 billion, up 18.8%
year-on-year; net profit attributable to equity shareholders of the
Company was RMB 59.980 billion, up
56.3% from the same period last year; basic earnings per share
("EPS") were RMB 0.495, up 56.3%
year-on-year.
- The Company's financial position continued to improve during
the first three quarters this year. In accordance with IFRS, its
cash and cash equivalents at the end of the third quarter were
RMB 172.284 billion.
Business Review:
In the first three quarters of 2018, global economy recorded
slow recovery, while China's
overall economy maintained stable performance and grew steadily
with its gross domestic product (GDP) up by 6.7% year-on-year.
International crude oil prices fluctuated with upward trend. The
average Brent crude oil spot price for the period increased by
39.0% year-on-year. According to the statistics of NDRC, domestic
apparent consumption of refined oil products increased by 5.4%
compared with the same period last year. Gasoline consumption
increased by 6.4% year-on-year, consumption growth for kerosene and
diesel was 9.2% and 3.7% year-on-year, respectively. Domestic
demand for natural gas remained robust with apparent consumption up
by 18.0% compared with the same period last year. Domestic
consumption of major chemicals maintained significant growth with
consumption of ethylene equivalent up by 7.8% year on year, and
gross margin of chemical products remained at a high level. During
the reporting period, the Company captured market opportunities and
made the product quality as its top priority. It attached great
importance to efficiency, focused on improving the quality and
efficiency of its operations, strengthened efforts in cost
reduction, market expansion, structural adjustment, reform
implementation and management reinforcement. Through these efforts,
it delivered solid operating results.
Exploration and Production:
Exploration and Production: With the recovery of crude oil
price, the Company pursued efficient exploration and effective
production to increase proved reserves. Our continuing efforts in
exploration paid off with new oil and gas discoveries in
Sichuan Basin, Tarim Basin, Yin'e
Basin and southern Songliao Basin. In development, we adopted a
profit-oriented approach to speed up the crude oil new production.
We also accelerated natural gas development by enhancing
production-supply-storage-marketing system building to realise
synergy along the entire value chain. In the first three quarters,
oil and gas production of the Company was 335.34 million barrels of
oil equivalent, of which domestic crude oil production increased by
0.2% while natural gas grew by 5.9%. The Exploration and Production
Segment's operating loss narrowed by RMB
25.442 billion to RMB 1.081
billion compared with same period last year.
Exploration and
Production
|
Unit
|
For nine-month period
ended 30 September
|
Changes
(%)
|
2018
|
2017
|
Oil and gas production (Note 1)
|
million
boe
|
335.34
|
332.63
|
0.8
|
Crude oil
production
|
million
barrels
|
216.49
|
220.21
|
(1.7)
|
China
|
million
barrels
|
186.50
|
186.09
|
0.2
|
Overseas
|
million
barrels
|
29.82
|
34.12
|
(12.6)
|
Natural gas
production
|
billion cubic
feet
|
713.77
|
674.15
|
5.9
|
Realised crude oil
price
|
USD/barrel
|
65.12
|
47.05
|
38.4
|
Realised natural gas
price
|
USD/thousand cubic feet
|
5.91
|
5.23
|
13.0
|
|
Note
1: Conversion: for domestic production of crude oil, 1 tonne =
7.10 barrels. For overseas production of crude oil in 2017 1 tonne
= 7.21 barrels, in 2018 1 tonne=7.20 barrels. For production of
natural gas, 1 cubic meter = 35.31 cubic feet. 1 barrel of oil
equivalent=6,000 cubic feet.
|
Refining:
With the market-oriented approach, we optimised product mix to
produce more gasoline and jet fuel, and the diesel-to-gasoline
ratio further decreased. The GB VI refined oil products quality
upgrading was constantly pushed forward. We allocated domestic and
overseas resources as a whole and export of refined oil products
was increased to help maintain high utilisation of refining
facilities. Crude oil sourcing optimisation continued to lower our
feedstock cost. We comprehensively optimised our production plans
to ensure safe and reliable operations. The advantage of
centralised marketing was given full play, and profitability of
LPG, asphalt, and sulphur maintained at a high level. In the first
three quarters, refinery throughput increased by 3.0% compared with
the same period last year. Refined oil products production
increased by 3.5%, among which gasoline up by 7.0%, kerosene up by
9.0% and diesel down by 1.8% compared with the same period last
year. The Refining Segment realised an operating profit of
RMB 54.680 billion, up by 24.7%
compared with the same period last year.
Refining (Note 2)
|
Unit
|
For nine-month
period
ended 30 September
|
Changes
(%)
|
2018
|
2017
|
Refinery
throughput
|
million
tonnes
|
182.74
|
177.46
|
3.0
|
Gasoline, diesel
and
kerosene production
|
million
tonnes
|
116.13
|
112.20
|
3.5
|
Gasoline
|
million
tonnes
|
45.74
|
42.73
|
7.0
|
Diesel
|
million
tonnes
|
48.62
|
49.50
|
(1.8)
|
Kerosene
|
million
tonnes
|
21.77
|
19.97
|
9.0
|
Light chemical
feedstock
|
million tonnes
|
29.01
|
28.54
|
1.6
|
Light product
yield
|
%
|
76.11
|
75.84
|
0.27 percentage points
|
Refining
yield
|
%
|
94.98
|
94.76
|
0.22 percentage points
|
|
Note 2: Including
100% production of domestic joint ventures.
|
Marketing and Distribution:
Faced with the intensified marketing competition, the Company
brought our advantages in integrated operation and distribution
network into full play and coordinated internal and external
resources. We proactively promoted precision marketing and
differentiated marketing to achieve sustained growth in total
domestic sales volume and retail business scale. We improved our
environmental protection measures for our service station and
revamped the storage and transportation facilities of refined oil
products. We further promoted integration of fuel business and
non-fuel business, perfected 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 three quarters, total sales volume of refined oil products
was 148 million tonnes. Total domestic sales volume of refined oil
products was 135 million tonnes, up by 1.3%. The operating revenues
of non-fuel business reached RMB 24.250
billion, up by 13.4% compared with the same period last
year. The Marketing and Distribution Segment realised an operating
profit of RMB 23.389 billion,
basically flat year on year.
Marketing and
Distribution
|
Unit
|
For nine-month
period
ended 30 September
|
Changes
(%)
|
2018
|
2017
|
Total sales volume of
refined oil products
|
million tonnes
|
147.78
|
150.23
|
(1.6)
|
Total domestic sales of refined oil products
|
million
tonnes
|
135.02
|
133.26
|
1.3
|
Retail
|
million
tonnes
|
90.82
|
90.67
|
0.2
|
Direct sales &
Distribution
|
million
tonnes
|
44.20
|
42.60
|
3.8
|
Throughput per
station (Note 3)
|
tonnes
|
3,953
|
3,935
|
0.5
|
|
Note 3: Throughput
per station was annualised.
|
Unit:
stations
|
|
As of 30
September
2018
|
As of 31
December
2017
|
Changes from the
end of last year to
the end of the
reporting period (%)
|
Total number of
Sinopec-branded service stations
|
30,643
|
30,633
|
0.03
|
Number of
company-operated stations
|
30,637
|
30,627
|
0.03
|
Number of convenience stores
|
26,981
|
25,775
|
4.68
|
Chemicals:
With the clients-oriented approach, we provided more products
needed by the market through enhancing the dynamic optimisation of
facilities and product chains and continued adjusting our product
mix to reduce chemical feedstock cost and pressed ahead
optimisation of product slate. We improved the coordination among
mechanism combining production, marketing, research and
application, advance new high-end products development, promotion
and application. We put advantages of marketing network into full
play and conducted differentiated and tailor-made measures to
expand sales scale. We focused on value-added, green, and
eco-friendly materials to satisfy clients' requirement on high
quality. In the first three quarters, ethylene production reached
8.784 million tonnes, up by 2.9% and chemical sales volume was
64.98 million tonnes, up by 12.8% compared with the same period
last year. The differential ratio of synthetic fibre reached 90.4%
and ratio of specialty products of synthetic resin reached 64.0%.
The Chemicals Segment realised an operating profit of RMB 23.944 billion, up by 43.1% compared with the
same period last year.
Chemicals (Note
4)
|
Unit
|
For nine-month
period
ended 30 September
|
Changes
(%)
|
2018
|
2017
|
Ethylene
|
thousand
tonnes
|
8,784
|
8,534
|
2.9
|
Synthetic
resin
|
thousand
tonnes
|
12,171
|
11,791
|
3.2
|
Synthetic
rubber
|
thousand
tonnes
|
646
|
642
|
0.6
|
Monomers and polymers
for synthetic fibre
|
thousand
tonnes
|
7,100
|
7,061
|
0.6
|
Synthetic
fibre
|
thousand tonnes
|
940
|
923
|
1.8
|
|
Note 4: Including
100% production of domestic joint ventures.
|
Capital Expenditure:
In the first three quarters, total capital expenditures were
RMB 48.012 billion. Capital
expenditures for the exploration and production segment were
RMB 19.761 billion, mainly for oil
and gas capacity building, Wen 23 Gas Storage Project,
Erdos-Anping-Cangzhou Gas Pipeline Project, the first phase of
Xinqi Pipeline Project as well as overseas projects. Capital
expenditures for the refining segment were RMB 9.689 billion, mainly for the Zhongke
integrated refining and chemical project, product mix optimisation
of Zhenhai, Maoming and Tianjin,
GB VI gasoline and diesel quality upgrading projects, and crude oil
pipeline construction of Rizhao-Puyang-Luoyang as well as other
Pipeline Storage & Transportation construction. Capital
expenditures for the marketing and distribution segment were
RMB 9.712 billion, mainly for
constructing refined oil products depots, pipelines and service
stations and revamping of underground oil tanks, as well as other
safety and environmental protection hazard removal projects.
Capital expenditures for the chemicals segment were RMB 6.304 billion, mainly for integrated refining
and basic chemical projects of Zhongke, Gulei, high-efficiency and
environment-friendly aromatics project in Hainan, Zhong'an United Coal Chemical project
and high-end value-added projects of Zhongsha PC, Yangzi EVA and
Yizheng high-performance fibre. Capital expenditures for corporate
and others were RMB 2.546 billion,
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 30
September 2018
|
As of 31
December 2017
|
Changes from
the
end of last year to
the end of the
reporting period
(%)
|
Total
assets
|
1,662,760
|
1,595,504
|
4.2
|
Total equity
attributable to equity
shareholders of the Company
|
722,317
|
727,244
|
(0.7)
|
|
Items
|
Nine
Months
|
Changes
compare
with the same period
last year (%)
|
2018
|
2017
|
Net cash flow from
operating activities
|
137,919
|
111,193
|
24.0
|
|
Operating
income
|
2,072,970
|
1,744,955
|
18.8
|
Net profit
attributable to equity
shareholders of the Company
|
59,980
|
38,373
|
56.3
|
Net profit
attributable to equity
shareholders of the Company
excluding extraordinary gains and losses
|
57,150
|
36,718
|
55.6
|
Weighted average
return on net assets (%)
|
8.28
|
5.37
|
2.91 percentage points
|
Basic earnings per
share (RMB)
|
0.495
|
0.317
|
56.3
|
Diluted earnings per
share (RMB)
|
0.495
|
0.317
|
56.3
|
Extraordinary
(gain)/loss items
|
Third Quarter
2018
RMB
million
|
Nine Months
2018
RMB
million
|
Net loss/(gain) on
disposal of non-current assets
|
143
|
(75)
|
Donations
|
27
|
84
|
Government
grants
|
(1,709)
|
(3,742)
|
Gains on holding and
disposal of various investments
|
(525)
|
(993)
|
Other extraordinary
income and expenses, net
|
549
|
763
|
Subtotal
|
(1,515)
|
(3,963)
|
Tax effect
|
338
|
994
|
Total
|
(1,177)
|
(2,969)
|
Equity shareholders
of the Company
|
(1,021)
|
(2,830)
|
Minority
interests
|
(156)
|
(139)
|
Principal
financial data and indicators prepared in accordance with
International Financial Reporting standards (IFRS)
|
|
Units: RMB
million
|
|
As of 30
September 2018
|
As of 31
December 2017
|
Changes from
the
end of last year to
the end of the
reporting period (%)
|
Total
assets
|
1,662,760
|
1,595,504
|
4.2
|
Equity attributable to equity
shareholders of the Company
|
721,261
|
726,120
|
(0.7)
|
|
|
Nine
Months
|
Changes compare
with the same
period last year (%)
|
2018
|
2017
|
|
Operating
profit
|
85,865
|
55,757
|
54.0
|
Net profit
attributable to equity
shareholders of the Company
|
60,155
|
39,404
|
52.7
|
Basic earnings per
share (RMB)
|
0.497
|
0.325
|
52.7
|
Diluted earnings per
share (RMB)
|
0.497
|
0.325
|
52.7
|
Return on net assets
(%)
|
8.34
|
5.51
|
2.83 percentage points
|
Net cash generated
from
operating activities
|
137,919
|
111,193
|
24.0
|
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 with solid and
healthy foundation.
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