BEIJING, Oct. 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 nine months ending September 30, 2010.
Financial Highlights: -- In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), the Company's turnover in the first nine months of 2010 was RMB 1,427.622 billion, up 59.8% over the same period in 2009. Net profit attributed to equity shareholders of the Company was RMB 56.397 billion, representing an increase of 11.6% over the previous year. Basic earnings per share was RMB 0.650, rising by 11.6% year-on- year. -- In accordance with the International Financial Reporting Standards ("IFRS"), the Company's turnover, other operating revenues and other income amounted to RMB 1,427.622 billion, representing an increase of 59.8%. Net profit attributable to equity shareholders of the Company was RMB 56.445 billion, up by 11.5% compared to the same period last year. Basic earnings per share was RMB 0.651, up by 11.5% year-on-year. -- Capital expenditure for the first three quarters was RMB 55.822 billion. Business Highlights -- The Exploration and Production Segment recorded an operating profit of RMB 40.838 billion for the first nine months, up 140.7% compared to the same period last year. The Company produced 34.93 million barrels of crude oil and 8.87 billion cubic meters of natural gas representing an increase of 1.9% and 45.0% respectively, over the same period of last year. -- The Refining Segment generated an operating profit of RMB 8.491 billion, representing a decrease of 60.6% from the same period of last year. The refinery throughput of crude recorded a year-on-year increase of 14.4% to 154 million tonnes. -- The Marketing and Distribution Segment recorded an operating profit of RMB 23.306 billion, representing a year-on-year increase of 4.2%. The total domestic sales of refined oil products and the sales through retail channels amounted to 104.35 million tonnes and 64.14 million tonnes, representing a year-on-year increase of 16.5% and 11.2% respectively. -- The Chemicals Segment reported an operating profit of RMB 10.393 billion, a decrease of 27.3% from the same period of last year. The output of ethylene and synthetic resin reached 6.61 million tonnes and 9.532 million tonnes, up 39.4% and 28.7% respectively.
Mr. Wang Xinhua, Chief Finance Officer of Sinopec Corp. commented: "In the first three quarters of 2010, China's economy continued to grow rapidly. Domestic demand for oil products and chemical products has grown steadily. The Company has achieved continuous growth and economic gains by seizing the opportunity to further expand, optimizing production operations, exploring growth potential and enhancing efficiency."
Highlights of Results
PRINCIPAL FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES ("ASBE")
(Unit: RMB millions) At At December 31, Changes from the September 2009 end 30, 2010 of last year (%) Total assets (RMB millions) 939,609 886,896 5.9 Total equity attributable to equity shareholders of the 406,266 379,593 7.0 Company (RMB millions) Net assets per share attributable to equity shareholders of the Company (RMB) 4.686 4.378 7.0 Nine-month period ended September 30 (January - September) Changes over the same 2010 2009 period of the preceding year (%) Net cash flow from operating activities 95,240 109,164 (12.8) (RMB millions) Net cash flow from operating activities per share (RMB) 1.098 1.259 (12.8) Three-month period Nine-month period ended ended September 30 September 30 (January - September) (July - September) Changes Changes over over the same the same 2010 2009 period of 2010 2009 period of the the preceding preceding year year (%) (%) Net profit attributable to equity shareholders of the Company (RMB millions) 19,621 17,091 14.8 56,397 50,555 11.6 Basic earnings per share (RMB) 0.226 0.197 14.8 0.650 0.583 11.6 Diluted earnings per share (RMB) 0.224 0.197 13.7 0.642 0.580 10.7 Basic earnings per share (before extraordinary gain and loss) (RMB) 0.221 0.191 15.7 0.625 0.575 8.7 Fully diluted return on net assets (%) 4.83 4.66 0.17 13.88 13.78 0.10 percentage percentage Weighted average return on net assets (%) 4.71 4.69 0.02 13.94 14.32 (0.38) percentage percentage points points Weighted average return (before extraordinary gain and loss) on net assets (%) 4.65 4.56 0.09 13.49 14.17 (0.68) percentage percentage points points PRINCIPAL FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS") At September 30 At December 31 Changes from the 2010 2009 end of last year (%) Total assets (RMB millions) 952,085 898,263 6.0 Total equity attributable to equity shareholders of the Company (RMB millions) 404,793 378,072 7.1 Net assets per share (RMB) 4.669 4.361 7.1 Adjusted net assets per share (RMB) 4.584 4.282 7.1 Nine-month period ended September 30 (January - September) Changes over the same 2010 2009 period of the preceding year (%) Net cash flow generated from operating activities (RMB millions) 94,958 108,771 (12.7) Three-month period ended Nine-month period ended September 30 September 30 (July - September) (January - September) Changes Changes over the over same the same 2010 2009 period 2010 2009 period of of the the preceding preceding year (%) year (%) Profit attributable to equity shareholders of the 19,638 17,118 14.7 56,445 50,638 11.5 Company (RMB millions) Basic earnings per share (RMB) 0.226 0.197 14.7 0.651 0.584 11.5 Diluted earnings per share (RMB) 0.224 0.197 13.7 0.643 0.581 10.7 Return on net assets (%) 4.85 4.68 0.17 13.94 13.86 0.08 percentage percentage points points
Exploration & Production Segment: Over the first three quarters of 2010, management sought to optimize exploration activity, and enhance the reserve development rate, the rate of oilfield recovery and single well oil production. Commencing the commercial operation of the Sichuan-Eastern China Gas Project was a key priority, alongside efforts to improve coordination between the production and marketing of natural gas, and ensure a safe and stable gas supply. In the first three quarters, the Company recorded an operating profit of RMB 40.838 billion for the first nine months, up 140.7% compared to the same period last year. The output of crude oil and natural gas amounted to 34.93 million tonnes and 8.87 billion cubic meters, respectively, representing year-on-year growth of 1.9% and 45.0%, respectively.
Refining Segment: During the first three quarters, efforts were made to ensure the safety of the high-load operations of oil refining, increase refinery throughput, enhance the product mix, and increase the production of jet fuel, diesel oil and chemical light oil. In addition, the Company enhanced marketing efforts around non-regulated products with high added value. In the first three quarters, the Company generated an operating profit of RMB 8.491 billion, representing a decrease of 60.6% from the same period of last year. The Company processed 154 million tonnes of crude oil, representing year-on- year growth of 14.41%.
Marketing and Distribution Segment: The Company optimized its operating structure to expand terminal sales, accelerate the development of newly-built service stations and further develop the non-fuel business. In the first three quarters, the Company recorded an operating profit of RMB 23.306 billion, representing a year-on-year increase of 4.2%. Domestic distribution and retail of oil products amounted to 104.35 million tonnes and 64.14 million tonnes, respectively, representing year-on-year growth of 16.50% and 11.22%, respectively.
Chemicals Segment: The Company ensured that the Tianjin and Zhenhai ethylene plants were brought on stream smoothly and have continued to operate safely, and oversaw increased output of chemical products. The Company also expanded the market for its chemical products and reinforced the integration of production, sales and research, and sold all the products produced. In the first three quarters, the Company reported an operating profit of RMB 10.393 billion, a decrease of 27.3% from the same period of last year. Ethylene output reached 6.61 million tonnes, representing year-on-year growth of 39.42%, while the output of synthetic resin reached 9.532 million tonnes, representing year-on-year growth of 28.67%.
Summary of Principal Operating Results for the First Nine Months Nine-month period ended Changes September 30 over the same period Operating Data Unit of the 2010 2009 preceding year (%) Exploration and Production Crude oil Ten thousand production(Note 1) tonnes 3,493 3,427 1.93 Natural gas Hundred million production cubic meters 88.70 61.17 45.00 Crude oil price RMB / tonne realized(Note 1) 3,411 2,239 52.34 Natural gas price RMB / thousand realized cubic 1,132 960 17.92 meters Refining Refinery throughput Ten thousand 15,376 13,439 14.41 tonnes Gasoline, diesel Ten thousand oil and kerosene tonnes production 9,225 8,363 10.31 Including Gasoline Ten thousand tonnes 2,689 2,557 5.16 Diesel oil Ten thousand tonnes 5,599 5,056 10.74 Kerosene Ten thousand tonnes 937 750 24.93 Light chemical feedstock Ten thousand production tonnes 2,586 1,931 33.92 Light products yield % 75.71% 75.30% 0.41 percentage Refinery yield % 94.78% 94.28% 0.50 percentage Marketing and Distribution Total domestic Ten thousand sales volume of tonnes oil products 10,435 8,957 16.50 Including Retail volume Ten thousand tonnes 6,414 5,767 11.22 Direct sales Ten thousand volume tonnes 2,443 1,751 39.52 Wholesale Ten thousand volume tonnes 1,578 1,439 9.66 Total number of service stations Stations 30,050 29,522 1.79 Including: company-operated Stations 29,467 28,874 2.05 franchised Stations 583 648 (10.03) Annualized pumped volume per station (Note 2) Ton/station 2,901 2,663 8.94 Chemicals (Note 3) Ethylene Ten thousand tonnes 661.0 474.1 39.42 Synthetic resin Ten thousand tonnes 953.2 740.8 28.67 Synthetic rubber Ten thousand tonnes 71.9 64.0 12.34 Synthetic fiber monomer and Ten thousand 652.4 572.8 13.90 polymer tonnes Synthetic fiber Ten thousand tonnes 103.0 96.7 6.51 Urea Ten thousand tonnes 112.8 140.2 (19.54) Note 1: Data regarding crude oil production and the realized price for 2009 were restated upon the acquisition of Sinopec Group Angola's upstream assets Note 2: Pumped volume per station data is an annualized average; Note 3: Including 100% outputs of Joint Ventures.
In the first three quarters of 2010, the Company's accumulated capital expenditure amounted to RMB 55.822 billion.
Of that, capital expenditure in the Exploration and Production Segment amounted to RMB 25.572 billion. Notable achievements included the successful completion of the Sichuan-to-Eastern China Gas Project, which went into commercial operation. Newly-built crude oil production capacity and newly-built natural gas production capacity reached 3.83 million tonnes per year and 561 million cubic meters per year, respectively.
Capital expenditure in the Oil Refining Segment amounted to RMB 8.787 billion with special focus on upgrading oil product quality. A low-grade crude oil adaptive-processing reconstruction project and a storage and pipeline construction project have been launched smoothly and on schedule.
Capital expenditure in the Chemical Segment amounted to RMB 7.145 billion, with ethylene projects in Tianjin and Zhenhai commencing commercial production on schedule.
Capital expenditure in the Marketing and Distribution Segment amounted to RMB 13.326 billion, with notable achievements made in the construction and acquisition of service stations in key areas. 1,282 service stations have now been developed.
Headquarters and other capital expenditures amounted to RMB 992 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.
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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