Sinopec Corp. Announces 2010 First Quarter Results
BEIJING, April 28 /PRNewswire-Asia-FirstCall/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or "the Company") (CH: 600028; HKEX: 386; NYSE: SNP; LSE: SNP) today announced its unaudited results for the first three months ending 31 March 2010.
Financial Highlights:
-- In accordance with the PRC Accounting Standards for Business
Enterprises ("ASBE"), the Company's turnover in the first three months
of 2010 was RMB 438.209 billion, up 92.62% over the same period last
year. Net profit attributable to equity shareholders and basic earnings
per share were RMB 15.768 billion and RMB 0.182 respectively, both
rising by 40.14% year-on-year.
-- In accordance with the International Financial Reporting Standards
(IFRS), the Company's turnover, other operating revenues and other
income was RMB 438.209 billion, up 92.62% over the same period last
year. Net profit attributable to equity shareholders and basic earnings
per share were RMB 15.785 billion and RMB 0.182, both rising 39.93%
over the same period last year.
-- Capital expenditure of the Company for the first quarter was
RMB 16.844 billion.
Business Highlights
-- The production of crude remains at similar levels to last year, while
natural gas increased 40.97% year-on-year.
-- Refinery throughput of crude recorded an increase of 20.42% over last
year to 49.50 million tones.
-- Domestic sales of refined oil products amounted to 32.84 million tonnes,
an increase of 24.25% over the same period of last year.
-- The production of ethylene and synthetic resin reached 2.03 million
tonnes and 2.92 million tones, increased 36.29% and 20.72% respectively.
Mr. Wang Xinhua, Chief Finance Officer of Sinopec Corp. commented: "In the first quarter of 2010, China's economy continued to recover. In light of state stimulus policies, the demand for natural gas, oil and chemical products grew steadily and the Company took various proactive measures to expand the market and optimize the product mix. Meanwhile, priority was given to ensure high safety standards, energy conservation and lower energy consumption. In the first three months of this year the production of natural gas, refinery throughput of crude oil, sales volume of oil products, and production of ethylene, all increased substantially. We are also pleased to report that the pipeline of Sichuan-to-Eastern China Gas Project and the Tianjin and Zhenhai ethylene projects started normal operations. We are glad that all segments achieved good business performance."
Highlights of Results
PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS PREPARED IN
ACCORDANCE WITH THE PRC ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES
("ASBE")
(Unit: RMB millions)
Changes
from the
At 31 end of the
At 31 March December preceding
2010 2009 year (%)
Total assets (RMB millions) 914,276 866,475 5.52
Total equity attributable to
shareholders of the Company (RMB
millions) 392,816 377,182 4.14
Net assets per share attributable to
equity shareholders of the Company
(RMB) 4.531 4.350 4.14
Changes over
the same
Three-month period of
period ended the
31 March preceding
2010 year (%)
Net cash flow from operating
activities (RMB millions) 30,149 (45.82)
Net cash flow from operating
activities per share (RMB) 0.348 (45.82)
Changes
over the
Three-month Three-month same period
period ended period of the
31 March ended 31 preceding
2010 March 2009 year (%)
Net profit attributable to equity
shareholders of the Company (RMB
millions) 15,768 11,252 40.14
Basic earnings per share (RMB) 0.182 0.130 40.14
Basic earnings per share (before
extraordinary gain and loss) (RMB) 0.180 0.130 38.46
Diluted earnings per share (RMB) 0.179 0.129 38.76
Weighted average return on net
assets (%) 4.10 3.36 0.74
percentage
points
Weighted average return (before
extraordinary gain and loss) on net
assets (%) 4.05 3.34 0.71
percentage
points
Extraordinary gain/loss items
(Unit: RMB millions)
Extraordinary gain/loss items Three-month period ended 31 March
2010(Income) /expense(RMB millions)
Gain on disposal of non-current
assets (27)
Donations 12
Gain on holding and disposal of
various investments (14)
Other non-operating income and
expenses, net (231)
Subtotal (260)
Tax effect 65
Total (195)
Attributable to: Equity shareholders
of the Company (192)
Minority interests (3)
PRINCIPAL FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH
INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS")
Changes
from the
At 31 end of the
At 31 March December preceding
2010 2009 year (%)
Total assets (RMB millions) 929,823 877,842 5.92
Total equity attributable to equity
shareholders of the Company (RMB
millions) 391,312 375,661 4.17
Net assets per share (RMB) 4.513 4.333 4.17
Adjusted net assets per share (RMB) 4.437 4.254 4.30
Changes
over the
Three-month Three-month same period
period ended period of the
31 March ended 31 preceding
2010 March 2009 year (%)
Net cash generated from operating
activities (RMB millions) 27,995 53,117 (47.30)
Profit attributable to the equity
shareholders of the Company (RMB
millions) 15,785 11,281 39.93
Basic earnings per share (RMB) 0.182 0.130 39.93
Diluted earnings per share (RMB) 0.179 0.129 38.76
Return on net assets (%) 4.03 3.32 0.71
percentage
points
Business Review
Exploration & Production Segment: Over the period the Company accelerated 2D and 3D seismic field acquisition and exploration, and invested in non-conventional oil and gas resources. The Company continued to increase the recovery rate and single well capacity, and achieved stable supply of crude oil, despite difficulties from natural disasters such as blizzards and sea ice pack. The pipeline of Sichuan-to-Eastern China Gas Project started normal operations. In the first quarter, the output of crude oil reached 10.38 million tonnes, similar to last year; while the output of natural gas amounted to 2.794 billion cubic meters, up 40.97%.
Refining Segment: The refining facilities have been kept at a high utilization rate. Further initiatives were made to adjust product mix in order to accommodate market needs, for instance, the Company increased the output of light chemical feedstock as well as high value-added products such as asphalt, petroleum coke and LPG etc. At the same time, the Company successfully launched operations of new and upgraded facilities. In the first quarter, the refinery throughput of crude oil increased 20.42% to 49.50 million tonnes.
Marketing and Distribution Segment: In light of continued efforts to expand market potential, including non-fuel business, and improvement in functional services at stations, the domestic sales of refined oil products amounted to 32.84 million tonnes, a year-on-year growth of 24.25%. Meanwhile dedicated "green" channels were set up to ensure the supply of oil products for drought relief.
Chemicals Segment: The Company made tremendous efforts to strengthen the connection among production, sales, and research, and optimize its production plan and product mix to meet the market demand. The chemical facilities were operated at high capacity and the Tianjin ethylene project entered into normal production. In the first quarter, the production of ethylene and synthetic resin reached 2.03 million tonnes and 2.92 million tonnes, a year-on-year growth of 36.29% and 20.72% respectively.
Summary of Principal Operating Results for the First Three Months
Three-month period ended
Operational Data Unit 31st March Changes (%)
Year 2010 Year 2009
Exploration and Production
Crude oil production 10 thousand
tonnes 1,038.06 1,039.56 (0.14)
Natural gas
production 100 million
cubic meters 27.94 19.82 40.97
Realised crude oil
price RMB/tonne 3,315.94 1,599.01 107.37
Realised natural gas
price RMB/thousand
cubic meters 1,006.53 961.53 4.68
Refining (Note 1)
Refinery throughput 10 thousand
tonnes 4,950.41 4,111.01 20.42
Gasoline, diesel and
kerosene production 10 thousand
tonnes 2,948.84 2,572.26 14.64
Of which: Gasoline 10 thousand
tonnes 862.21 815.65 5.71
Diesel 10 thousand
tonnes 1,799.58 1,538.40 16.98
Kerosene 10 thousand
tonnes 287.05 218.21 31.55
Light chemical
feedstock 10 thousand
tonnes 850.32 577.29 47.30
Light yield % 75.75 74.93 0.82
percentage
points
Refining yield % 94.80 93.66 1.14
percentage
points
Marketing and Distribution
Total domestic sales
of refined oil
products 10 thousand
tonnes 3,283.82 2,642.83 24.25
Of which: Retail 10 thousand
tonnes 2,018.58 1,736.70 16.23
Distribution 10 thousand
tonnes 775.94 505.30 53.56
Wholesale 10 thousand
tonnes 489.30 400.80 22.08
Total number of
service stations
(Note2) Stations 29,795 29,698 0.33
Of which: Company
Owned and
company-
operated Stations 29,158 29,055 0.35
Franchised Stations 637 643 (0.93)
Throughput per
station of owned and
company-operated
(Note3) tonnes 2,769 2,715 1.99
Chemicals (Note 4)
Ethylene 10 thousand
tonnes 202.80 148.80 36.29
Synthetic resins 10 thousand
tonnes 291.67 241.60 20.72
Synthetic rubbers 10 thousand
tonnes 24.01 19.83 21.08
Monomers and polymers
for synthetic fibers 10 thousand
tonnes 213.26 172.26 23.80
Synthetic fibers 10 thousand
tonnes 32.65 31.49 3.68
Urea 10 thousand
tonnes 48.69 36.17 34.61
Notes 1: The data of 2009 was restated due to acquisition of Qingdao
Petrochemical;
Notes 2: The service station total number in 2009 was the year-end number;
Notes 3: Throughput per service station data was an annualized average;
Notes 4: Included 100% output of BASF-YPC and Shanghai Secco.
Capital Expenditure:
In the first quarter, the capital expenditure amounted to approximately RMB 16.844 billion, of which RMB 5.21 billion was used in the exploration and production segment for Sichuan-to-Eastern China Gas Project, Shengli, Northwest and Southwest Oil Fields as well as pipeline construction. The capital expenditure for the refining segment was RMB 2.137 billion, primarily for Tahe heavy crude oil refining project, Changling refinery revamping, Beihai refinery revamping, Rizhao-Yizheng crude oil pipeline and auxiliary projects. The capital expenditure in chemical segment was RMB 5.509 billion, which was mainly used for the Tianjin and Zhenhai ethylene projects, etc. The marketing & distribution segment invested RMB 3.799 billion in building 337 service stations in key areas including highways, major cities and newly planned regions, and further accelerated the construction of the transportation & distribution network of oil products. The capital expenditure in the headquarters and others totaled RMB 189 million.
About Sinopec Corp.
Sinopec Corp. is a Chinese company that has been listed in Hong Kong, New York, London and Shanghai. The Company is an integrated energy and chemical company with upstream, midstream and downstream operations. The principal operations of Sinopec Corp. and its subsidiaries include: exploring, developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products; producing, trading, transporting, distributing and marketing refined oil products; and producing and distributing chemical products. Based on 2009 turnover, Sinopec Corp. is the largest listed company in China. The Company is one of the largest crude oil and petrochemical companies in China and Asia. It is also one of the largest gasoline, diesel and jet fuel and other major chemical products producers and distributors in China and Asia.
For additional information about Sinopec Corp., please visit the Company's website at http://www.sinopec.com .
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: [email protected] Email: [email protected]
Hong Kong
Tel: +852-2824-2638 Tel: +852-3512-5000
Fax: +852-2824-3669 Fax: +852-2259-9008
Email: [email protected] Email: [email protected]
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.
SOURCE China Petroleum & Chemical Corporation
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