China Petroleum & Chemical Corporation Announces 2012 Third Quarter Results PR Newswire BEIJING, Oct. 28, 2012 BEIJING, Oct. 28, 2012 /PRNewswire/ --China Petroleum & Chemical Corporation ("Sinopec" or "the Company") (CH: 600028; HKEX: 386; NYSE: SNP; LSE: SNP) today announced its unaudited third quarter results for the nine months ended 30 September, 2012. Financial Highlights: oIn accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), in the third quarter of 2012, the Company's operating income increased by 5.43% year-on-year to RMB676.694 billion. Net profit attributable to shareholders of the company decreased by 7.5% year-on-year to RMB18.249 billion and the basic earnings per share was RMB0.210, a reduction of 7.9% year-on-year. In accordance with the International Financial Reporting Standards (IFRS), in the third quarter of 2012, the Company's turnover, other operating revenues and other income amounted to RMB676.694 billion, increased by 5.43% over the same period of last year. Operating profit amounted to RMB28.185 billion in the third quarter, and net profit attributable to the shareholders of the Company amounted to RMB18.326 billion, down by 9.38% from the same period of last year. Basic earnings per share was RMB0.211, down by 9.44% year-on-year. oIn the first three quarters of 2012, the domestic demand for oil products and chemical products continued to rise, though at a slower rate. The price of chemical products fell in the second quarter, but rebounded in the third quarter. The Company made rational arrangements for production and operations in accordance with the macroeconomic trend and market demand, and actively adjusted its product mix, leading to a remarkable quarter-on-quarter improvement of results in the third quarter. Business Highlights: oExploration & Production Segment – In the first three quarters, the Company's oil and gas production reached 318 million barrels of oil equivalent, representing a year-on-year growth of 4.92%, of which, crude oil production was 245 million barrels and natural gas production was 438 billion cubic feet, representing a year-on-year growth of 2.32 % and 14.69 % respectively. oRefining Segment - In the first three quarters, the daily crude oil processing volume was 4.39 million barrels, representing a year-on-year growth of 0.46 %. oMarketing and Distribution Segment - The total sales volume and retail sales volume of oil product amounted to 128.34 million tonnes, representing a year-on-year growth of 5.56%. Total domestic sales volume of oil products increased by 4.32% to 118.48 million tonnes, of which the retail sales volume of oil product amounted to 81.05 million tonnes, representing a year-on-year growth of 7.28%. oChemicals Segment - In the first three quarters, the output of ethylene was 7.024 million tonnes, representing a year-on-year decrease of 4.51%, and the output of synthetic resin was 9.956 million tonnes, representing a year-on-year decrease of 1.10%. oIn the first three quarters of 2012, the Company's capital expenditure was RMB 83.448 billion. RESULTS REVIEW Exploration & Production Segment Significant progress has been made in field exploration, including south Ordos, Jiyang Depression, western Sichuan and Yuanba. The Company has strengthened and refined the development and management of old oilfields, accelerated the growth in mass production of oil and gas, promoted the exploration and development of unconventional oil and gas, and started to build the production capacity of shale gas in Fuling Pilot Project. In the first three quarters, the Company's oil and gas production reached 318 million barrels of oil equivalent, representing a year-on-year growth of 4.92%, of which, crude oil production was 245 million barrels and natural gas production was 438.4 billion cubic feet, representing a year-on-year growth of 2.32 % and 14.69 % respectively. Refining Segment The Company has optimized the purchase and allocation of crude oil, readjusted refining utilization, accelerated an upgrade in the quality of oil products, and adjusted the product mix to increase the output of gasoline and jet fuel. The Company has also streamlined operations to reduce cost. In the first three quarters, the daily crude oil processing volume was 4.39 million barrels, representing a year-on-year growth of 0.46 %. Marketing and Distribution Segment: The Company adjusted the operation strategies in response to changes in market demand. The Company maintained a good balance of oil products resources and optimized sales structure to increase retail volume; the Company developed its non-fuel business and e-commerce business; and the Company seized the opportunity to further explore the market of natural gas for transportation. In the first three quarters, the total sales volume and retail sales volume of oil product amounted to 128.34 million tonnes and 81.05 million tonnes respectively, representing a year-on-year growth of 5.56% and 7.28%. Chemicals Segment In light of the market situation, the Company has actively lowered the operation utilization of its chemical facilities, maintained a safe and stable operation, continuously raised the major economic and technical indicators; optimized and adjusted the structure of raw materials and chemical products. The Company has increased the output of high-value-added and differentiated products to enhance profitability. In the first three quarters, the output of ethylene was 7.024 million tonnes, representing a year-on-year decrease of 4.51%, and the output of synthetic resin was 9.956 million tonnes, representing a year-on-year decrease of 1.10%. Capital Expenditure In the first three quarters of 2012, the Company's capital expenditure was RMB 83.448 billion. Of this total, RMB 34.999 billion was used in the exploration and production segment, mainly for the exploration and development of the Shengli shallow water Oilfield, Tahe Oilfield in the northwest, Ordos oil and gas field and Sichuan Basin as well as Shandong LNG project. RMB 16.829 billion was used in the refining segment, mainly for a diesel quality upgrading, and refinery revamping projects in Shanghai Petrochemical and Jinling. RMB 10.496 billion was used in the chemicals segment, mainly for the construction of the Wuhan 800,000 tpa ethylene project, Yanshan butyl rubber project, and the Yizheng 1,4-Butanediol(BDO) project. RMB 20.334 billion was used in the marketing and distribution segment, mainly for the construction and acquisition of service stations, oil product pipelines and depots in the key areas such as highways, major cities and newly planned regions; promoting the non-fuel business and the IC card value-added services; 1,046 service stations were developed. RMB 0.79 billion was used for corporate and others, mainly for R&D facilities and the construction of IT projects. Summary of Principal Operating Results for the First Three Quarters Changes over Nine-month the same period ended period of the Operating Data Unit September 30 preceding year 2012 2011 (%) Exploration and Production Million barrels Oil and gas production of oil 318.08 303.17 4.92 equivalent Crude oil production Million barrels 245.01 239.46 2.32 China Million barrels 228.96 226.81 0.95 Overseas Million barrels 16.05 12.65 26.88 Natural gas production Billion cubic 438.41 382.25 14.69 feet Crude oil price realised USD / barrel 100.69 98.23 2.50 Natural gas price realised USD / thousand 5.77 5.47 5.48 cubic feet Refining (note 1) Processing volume of crude oil Thousand 4,390 4,370 0.46 barrels / day Refinery throughput Million tonnes 98.39 95.45 3.08 Including: Gasoline Million tonnes 29.70 27.59 7.65 Diesel oil Million tonnes 57.70 57.63 0.12 Kerosene Million tonnes 10.99 10.23 7.43 light chemical feedstock Million tonnes 26.89 27.37 (1.75) production Increased Light yield % 76.93 76.18 0.75 percentage points Increased Refinery yield % 95.23 95.20 0.03 percentage points Marketing and Distribution Total sales volume of oil products Million tonnes 128.34 121.58 5.56 Total domestic sales volume of oil Million tonnes 118.48 113.57 4.32 products Including: Retail Million tonnes 81.05 75.55 7.28 Direct sales Million tonnes 24.45 24.12 1.37 Wholesale Million tonnes 12.99 13.90 (6.55) Total number of service stations Stations 30,510 30,121 1.29 (note 2) Including: Company-operated Stations 30,497 30,106 1.30 Franchised Stations 13 15 (13.3) Annualized throughput per station Tonnes/station 3,542 3,330 6.37 (Note 3) Chemicals (Note 1) Ethylene Thousand tonnes 7,024 7,356 (4.51) Synthetic resin Thousand tonnes 9,956 10,067 (1.10) Synthetic rubber Thousand tonnes 703 746 (5.76) Synthetic fiber monomer and Thousand tonnes 6,699 7,086 (5.46) polymer Synthetic fiber Thousand tonnes 992 1,044 (4.98) Note 1: Including 100% production of Joint Ventures; Note 2: Service station data for 2011 is as of December 31, 2011; Note 3: The throughput per station is an annualized average of the Company's company-operated service stations; Note 4: Conversion rates: for domestic production of crude oil, 1 tonne = 7.1 barrels, for production of crude oil overseas, 1 tonne = 7.27 barrels; for refinery throughput, 1 tonne = 7.35 barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet. Appendix Highlight of Results Principal financial data and indicators prepared in accordance with the China Accounting Standards for Business Enterprises ("ASBE"). At 31 December Changes from the At 30 September 2012 2011 end of last year (%) Total assets (RMB 1,179,915 1,130,053 4.41 millions) Total equity attributable to shareholders of the 492,307 474,399 3.77 Company (RMB millions) Net assets per share attributable 5.670 5.472 3.62 to shareholders of the Company (RMB) Nine-month periods ended 30 September (January ~ September) Changes over the 2012 2011 same period of the preceding year (%) Net cash flow from operating 73,559 78,449 (6.23) activities (RMB millions) Net cash flow from operating 0.847 0.905 (6.41) activities per share (RMB) Three-month periods ended Nine-month periods ended 30 September 30 September (July ~ September) (January ~ September) Changes over the Changes over same period of the same 2012 2011 the preceding 2012 2011 period of the year (%) preceding year (%) Net profit attributable to shareholders of the 18,249 19,721 (7.5) 41,946 59,960 (30.0) Company (RMB millions) Basic earnings per 0.210 0.228 (7.9) 0.483 0.692 (30.2) share (RMB) Diluted earnings 0.198 0.220 (10.0) 0.461 0.672 (31.4) per share (RMB) Basic earnings per share (before 0.205 0.228 (10.1) 0.473 0.687 (31.1) extraordinary gain and loss) (RMB) Weighted average (0.54) (4.76) return on net 3.73 4.27 percentage 8.60 13.36 percentage assets (%) points points Weighted average return (before (0.62) (4.84) extraordinary gain 3.64 4.26 percentage 8.42 13.26 percentage and loss) on net points points assets (%) Nine-month period ended 30 Extraordinary items September 2012 (RMB millions) Gain on disposal of non-current assets (600) Donations 77 Gain on holding and disposal of various investments (76) Other extraordinary income and expenses, net (625) Subtotal (1,224) Tax effect 306 Total (918) Attributable to: Equity shareholders of the Company (884) Minority interests (34) Principal financial data and indicators prepared in accordance with International Financial Reporting Standards ("IFRS") At 30 September 2012 At 31 December Changes from the end of 2011 last year (%) Total assets (RMB 1,190,103 1,144,528 3.98 millions) Total equity attributable to equity 489,722 472,328 3.68 shareholders of the Company (RMB millions) Net assets per 5.641 5.448 3.54 share (RMB) Adjusted net assets per share 5.527 5.339 3.52 (RMB) Nine-month periods ended 30 September (January ~ September) Changes over the same 2012 2011 period of the preceding year (%) Net cash generated from operating 73,327 78,074 (6.08) activities (RMB millions) Three-month periods ended Nine-month periods ended 30 September 30 September (July ~ September) (January ~ September) Changes over Changes over the the same 2012 2011 same period of the 2012 2011 period of the preceding year (%) preceding year (%) Profit attributable to equity 18,326 20,222 (9.38) 42,829 61,396 (30.24) shareholders of the Company (RMB millions) Basic earnings 0.211 0.233 (9.44) 0.493 0.708 (30.37) per share (RMB) Diluted earnings 0.199 0.226 (11.95) 0.471 0.688 (31.54) per share (RMB) (0.61) (4.47) Return on net 3.74 4.35 8.75 13.22 assets (%) percentage points percentage points About Sinopec Corp. Sinopec is one of the largest integrated energy and chemical companies with upstream, midstream and downstream operations in China. Its principal operations include: the exploration and production, pipeline transportation and sales of petroleum and natural gas; the sales, storage and transportation of petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products; import & export, as well as import and export agency business of oil, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information. Adhering to its corporate mission of "Enterprise development, Contribution to the Country, Shareholder value creation, Social responsibility and Employee wellbeing", Sinopec Corp. implements strategies of resources, markets, integration, internationalization, differentiation and green low-carbon development with a view to realize its vision of building a world first class 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 Media Inquiries: Inquiries: Beijing Tel: (8610) 59960028 Tel: (8610) 59960028 Fax: (8610) 59960386 Fax: (8610) 59960386 Email: firstname.lastname@example.org Hong Kong Tel: (852) 28242638 Tel: (852) 35125000 Fax: (852) 28243669 Fax: (852) 22599008 Email: email@example.com SOURCE China Petroleum & Chemical Corporation
China Petroleum & Chemical Corporation Announces 2012 Third Quarter Results
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