Sinopec Corp. Announces 2011 First Quarter Results

BEIJING, April 28, 2011 /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 March 31, 2011.

Financial Highlights:

• In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), the Company's turnover in the first three months of 2011 was RMB 588.842 billion, up 34.25% over the same period in 2009. Net profit attributed to equity shareholders of the Company was RMB 20.501 billion, representing an increase of 24.49% over the previous year. Basic earnings per share was RMB 0.236, rising by 24.49% 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 588.842 billion, representing an increase of 34.25%. Net profit attributable to equity shareholders of the Company was RMB 20.643 billion, up by 25.22% compared to the same period last year. Basic earnings per share was RMB 0.238, up by 25.22% year-on-year.
• Capital expenditure for the first three quarters was RMB 13.97 billion.

Business Highlights

• The Exploration and Production Segment recorded an operating profit of RMB 13.143 billion for the first three months, up 14.3% compared to the same period last year. The output of crude oil amounted to 10.98 million tonnes, down by 5.8% over the same period last year, and the output of domestic crude oil amounted to 10.4963 million tonnes, up by 1.1% over the same period last year. The output of natural gas amounted to 3.627 billion cubic meters, up by 29.8% over the same period last year.
• The Refining Segment recorded an operating loss of RMB 576 million. The refinery throughput of crude oil amounted to 54.256 million tonnes, up by 7.4% over the same period last year.
• The Marketing and Distribution Segment generated an operating profit of RMB 9.163 billion, representing a year-on-year increase of 41.3%. Sales of refined oil products amounted to 39.6448 million tonnes, up by 14.7% over the same period last year.
• The Chemicals Segment reported an operating profit of RMB 9.312 billion, an increase of 64.0% from the same period last year. The output of ethylene and synthetic resin amounted to 2.5537 million tonnes and 3.5066 million tonnes respectively, up by 25.9% and 20.2% over the same period last year.

In the first quarter of 2011, China's economy continued to grow steadily. The price of crude oil in the international market rose continuously, and domestic demand for natural gas, refined oil and chemical products grew steadily. In response to the sharp increase in crude oil prices and an untimely adjustment of refined oil prices, the company has further optimized our product mix, and enhanced production safety. We also focused on actively increasing market share and took several measures to maintain a stable supply of refined oil products, which combined allow us to present these positive results, significantly increasing the output of natural gas, throughput of crude oil, sales quantity of refined oil and output of ethylene.

Highlights of Results

Business Review

Exploration & Production Segment: Extra effort was made to continue operations despite difficult winter and extreme weather. To ensure the best exploitation and safe operation of the Pugang Gas Field we focused on field management and optimization on production , which led to steady growth in domestic crude oil output and a substantial increase in natural gas output. The overseas output of crude oil declined compared with the same period last year, mainly due to the temporary suspension of production to perform field maintenance. In the first quarter, the output of crude oil amounted to 10.98 million tonnes, down by 5.8% over the same period last year, and the output of natural gas amounted to 3.627 billion cubic meters, up by 29.8% over the same period last year.

Refining Segment: The refineries were safely operated at high load, and the quality upgrade to GB III Standard diesel for vehicles is being implemented. We continued to optimize the allocation of crude oil, and adjust the product mix appropriately. Focus was also maintained on the sales of refinery by-products and centralized sales of sulphur and paraffin wax. In the first quarter, the throughput of crude oil amounted to 54.256 million tonnes, up by 7.4% compared to the same period last year.

Marketing and Distribution Segment: We actively pursued external procurement and adjusted the business scale to ensure sufficient market supply. We have enhanced our retail service and we are proactively improving the services of our non-fuel business. In the first quarter, the sales of refined oil products amounted to 39.6448 million tonnes, up by 14.7% over the same period last year.

Chemicals Segment: The chemical plants were safely operated at high load and new plants came into operation. Sales were matched to production and the product mix was adjusted to increase the proportion of high-end products such as synthetic resin for performance compound and differential fiber, etc. In the first quarter, the output of ethylene and synthetic resin amounted to 2.5537 million tonnes and 3.5066 million tonnes respectively, up by 25.9% and 20.2% over the same period last year.

Capital expenditure:

In the first quarter, the company's capital expenditure reached RMB 13.97 billion. Of which, RMB 6.696 billion was used in the E&P segment, mainly for the exploitation and development of the Shengli Tanhai Oilfield, northwestern Tahe Oilfield and northeastern Sichuan natural gas project, as well as the Shandong LNG project. RMB 1.905 billion was used in the refining segment, mainly for the quality upgrade of the diesel, overhauling the refinery projects in Beihai and Changling, as well as for the construction of the Rizhao-Yizheng crude oil pipeline. RMB 1.229 billion was used in the chemicals segment, mainly for the construction of the Wuhan 800,000 tonne/annum ethylene plant and the Zhongyuan methanol-to-olefins feedstock projects. RMB 4.085 billion was used in the marketing and distribution segment, mainly for the construction of service stations in key locations such as highways, core cities and newly planned regions, and for the construction of the refined oil distribution network, for which 393 service stations were newly built. RMB 55 million was used for construction of technology research facilities and IT projects for the headquarters and some other capital expenditures.

About Sinopec Corp.

China Petroleum & Chemical Corporation ("Sinopec Corp.") is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes:  exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Sinopec Corp. is China's largest manufacturer and supplier of petroleum products and major petrochemical products. It is the second largest producer of crude oil in China. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. The Company has the largest sales and distribution network of oil products and chemical products, its service stations is now 2nd largest in the world.

For additional information about Sinopec Corp., please visit the Company's website at www.sinopec.com.cn

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