China Petroleum & Chemical Corporation Announces 2012 Third Quarter Results

 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: ir@sinopec.com
Hong Kong
Tel: (852) 28242638  Tel: (852) 35125000
Fax: (852) 28243669        Fax: (852) 22599008
                                                    Email:
                                                    sinopec@brunswickgroup.com

SOURCE China Petroleum & Chemical Corporation
 
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