China Petroleum & Chemical Corporation Announces 2012 Annual Results Integrated business model enhances flexibility to overcome market challenges Achieving sound operational results despite complex business environment PR Newswire BEIJING, March 24, 2013 BEIJING, March 24, 2013 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or "the Company") (CH: 600028; HKEX: 386; NYSE: SNP; LSE: SNP) today announced its annual results for the year ended 31 December 2012. Financial Highlights: oIn accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), in 2012, the Company's operating income was RMB2,786.0 billion, up 11.2% year-on-year, and operating profit was RMB87.9 billion. Net profit attributable to equity shareholders of the Company was RMB63.5 billion, down 11.4% year-on-year. Basic and diluted earnings per share were RMB0.731 and RMB0.704 respectively. oIn accordance with the International Financial Reporting Standards (IFRS), in 2012, the Company's turnover, other operating revenues and other income was RMB2,786.0 billion, up 11.2% year-on-year, operating profit was RMB98.6 billion. Profit attributable to equity shareholders of the Company was RMB63.9 billion, down 12.8% year-on-year. Basic and diluted earnings per share were RMB0.736 and RMB0.708 respectively. oThe Board of Directors proposed a final cash dividend of RMB0.2 per share. Combined with the interim dividend of RMB0.10 per share, the total annual cash dividend for 2012 is RMB0.30 per share (tax inclusive), with dividend payout ratio reaching 41% (2011:36%). In addition, the Board proposed 2 bonus shares from retained earnings plus 1 bonus share from capital reserve for every 10 existing shares to all shareholders. Business Highlights: oExploration and production segment: The company realized growth in both oil and gas reserve and production, and showed significant results in unconventional oil and gas resource development through exploration activities conducted by the E&P segment in five key domestic regions, and achieved more than 100% replacement ratio of domestic oil and gas throughout the year. The Company officially launched its first shale gas pilot project with production capacity in Fuling. The Company's crude oil production increased 2.0% year-on-year to 328.28 million barrels; natural gas production increased 15.7% year-on-year to 598.01 billion cubic feet. The segment's operating profit was RMB70.1 billion. oRefining segment: The Company processed 221 million tonnes of crude oil, an increase of 1.8% from 2011, and produced 133 million tonnes of oil products, up by 3.9% from the previous year. The Company actively adjusted its product mix, which resulted in higher output of products with high market demand, such as gasoline and jet fuel. Despite the recorded operating loss for the year of RMB11.4 billion, gradual improvement in refining margins helped turnaround the business in the second half of the year, leading to a loss reduction of RMB 24.3 billion year-on-year. oMarketing and distribution segment: Sinopec adjusted operation strategies to actively respond to the changing market demand, as well as actively promoted one-stop service and specialty goods to achieve stable business growth. In 2012, the total sales volume of oil products increased to 173 million tonnes, up 6.7% year-on-year, with domestic refined oil retail volume increasing significantly. The segment's operating profit was RMB42.7 billion in 2012. oChemicals segment: In 2012, in response to changing market demand, the Company adjusted facility utilization rate in a timely manner, to focus on high-value-added products. Production of ethylene was reduced by 4.5% from previous year to 9.45 million tonnes in 2012. The total sales of chemical products were 54.35 million tonnes, up 7.0% year on year. The operating profit of this segment was RMB1.2 billion. oTotal capital expenditure was RMB168.96 billion for 2012. Assets acquisition: oThe Board passed a resolution to form a 50:50 joint venture company ("JV HK") between the two wholly-owned subsidiaries of the Company and the Group, respectively. The JV HK will acquire the equity interests of a number of overseas oil and gas assets owned by Sinopec Group for a total consideration of approximately USD3.0 billion, of which the Company, as a 50% JV HK partner, will be responsible for approximately USD1.5 billion. The year 2012 saw decelerated growth globally, a tepid recovery in the U.S. economy, the outbreak of European sovereign debt crisis and a dramatic slowdown in the growth of the emerging markets. China's economy slowed down in the first half of the year characterised by weak market demand. With the Chinese government introducing and strengthening macroeconomic control and expediting structural adjustments, the China's economy stabilized and then recovered, with a GDP growth of 7.8% for the year. Based on analysis and projection on the macro economy and market trends, the Company achieved positive results through proactive response to market changes, expansion of resources and markets, management improvement and cost reductions. Mr. Fu Chengyu, Chairman of Sinopec said, "The world witnessed difficult macroeconomic conditions in 2012, as well as a complex and volatile environment in the petroleum and petrochemical markets. By planning ahead, the Company was able to respond proactively to market dynamics, while also strengthening corporate governance, increasing shareholder returns and deepening internal reforms. Its ability to adapt to difficult market conditions leaves the Company well positioned to build a leading energy and chemicals enterprise and achieve positive operating results. "The acquisition of overseas oil and gas assets from Sinopec Group will further strengthen our crude oil reserves. This will also enhance our profitability and international competitiveness, as well as create long-term investment value for our shareholders. The Company will continue to deepen structural reforms, in light of strengthening the upstream production capacity and efficiency, and enhancing the mid and downstream product upgrades. To nurture and develop new businesses while improving the quality and efficiency of our existing businesses, Sinopec will endeavor to improve its management capabilities, with a focus on strategic planning and value-based management. We place great importance on our green and low-carbon strategy across the entirety of Sinopec's operations. Sinopec will remain focused on achieving shareholders returns, engaging in activities to advance corporate social responsibility and promote sustainable economic development of the Company and of the society." BUSINESS REVIEW Exploration and Production Business In 2012, the price of international crude oil fluctuated sharply within a wide range. In the first quarter, the spot price of Platts Brent crude oil rose to USD 128/barrel. The second quarter saw a dramatic slump to USD90/barrel, after which the price rebounded rapidly and fluctuated in an elevated range. The annual average spot price of Platts Brent crude oil was USD111.6/barrel, representing an increase of 0.3% from 2011. In 2012, the company realized growth in both oil and gas reserve and production, and showed significant results in unconventional oil and gas resource development through exploration activities conducted by the E&P segment in five key domestic regions, striking a balance between reserve and production. In exploration, the Company put more efforts to complete 2D seismic measurements for 23,436 kilometers and 3D seismic measurements for 11,813 square kilometers, representing a growth of 26% and 4% year-on-year, respectively. It also completed drilling exploration wells with a total footage of 2,545 kilometers, an increase of 17% from the previous year. In crude oil development, the Company expedited development activities in new blocks and enhanced recovery rates in old blocks. With respect to natural gas development, the Company sped up construction of production capacity in Sichuan Basin, Ordos Basin and Dawan Block of Puguang Gas Field. In terms of development for unconventional oil and gas resources, the Company met its target of developing and building horizontal wells with a capacity of 1 billion cubic meters in Ordos Basin, which is mainly focused on tight gas development. Moreover, the Company officially launched its first shale gas pilot project with production capacity in Fuling. Crude oil production increased 2.0% year-on-year to 328.28 million barrels. Domestic crude oil production increased 1.1%, while overseas crude oil production grew 18.1%. Natural gas production increased 15.7% year-on-year to 598.01 billion cubic feet. In 2012, the operating revenues of this segment were RMB257.2 billion, representing an increase of 6.3 % over the same period of 2011. This was mainly attributable to the increased sales volume of crude oil and natural gas, of 1.07 million tonnes and 2.1 billion cubic meters, respectively. The operating profit was RMB70.1 billion, representing a decrease of 2.2 % as compared with 2011. Summary of Operations for the Exploration and Production Segment Change from 2012 2011 2010 2011 to 2012 (%) Oil and gas production (mmboe) 427.95 407.91 401.42 4.9 Crude oil production (mmbbls) 328.28 321.73 327.85 2.0 China 306.60 303.37 302.18 1.1 Overseas 21.68 18.36 25.67 18.1 Natural gas production (bcf) 598.01 517.07 441.39 15.7 Change from the end of the 31 December, 31 December, 31 December, previous year 2012 2011 2010 to the end of the reporting period (%) Proved reserves of crude oil and 3,964 3,966 3,963 (0.05) natural gas (mmboe) Proved reserves of 2,843 2,848 2,888 (0.2) crude oil (mmbbls) Proved reserves of 6,730 6,709 6,447 0.3 natural gas (bcf) Notes: 1. Includes 100% of production and reserves of SSI. 2. For domestic production of crude oil, 1 tonne = 7.1 barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet; for production of crude oil abroad, 1 tonne = 7.27 barrels. Refining Business In 2012, in response to changing market conditions, the Company moderately increased its refinery throughput and adjusted its product mix, which resulted in higher production of well-received products, such as gasoline, jet fuel and high-value-added products. The Company expedited upgrading of oil products quality, supplying oil products with Beijing V standard in Beijing and steadily advancing its green and low-carbon developments by improving the efficiency of energy consumption and operations of its refineries, as well as carrying out various measures for energy conservation and emission reduction. Major techno-economic indicators improved significantly. The Company consolidated its sales of LPG and realized sound profits from sales of asphalt and paraffin wax in order to achieve a better economic efficiency. For the whole year, the Company processed 221 million tonnes of crude oil, an increase of 1.8% from 2011, and produced 133 million tonnes of oil products, up by 3.9% from the previous year. In 2012, the operating revenues of this segment totaled RMB1,270.9 billion, representing an increase of 4.9 % over the same period of 2011. This was mainly attributable to the increased sales volumes and the increased products prices. Despite the recorded operating loss for the year of RMB11.4 billion, gradual improvement in refining margins helped turnaround the business in the second half of the year, leading to a loss reduction of RMB 24.3 billion year-on-year. Summary of Operations for the Refining Segment Unit: million tonnes Change from 2012 2011 2010 2011 to 2012 (%) Refinery throughput 221.31 217.37 211.13 1.8 Gasoline, diesel and kerosene 132.96 128.00 124.38 3.9 production Gasoline 40.55 37.10 35.87 9.3 Diesel 77.39 77.17 76.09 0.3 Kerosene 15.01 13.73 12.42 9.3 Light chemical feedstock 36.33 37.38 35.00 (2.8) 0.67 percentage Light products yield (%) 76.75 76.08 75.79 points 0.06 percentage Refinery yield (%) 95.15 95.09 94.83 points Note: 1. Refinery throughput is converted at 1 tonne = 7.35 barrels; 2.Includes 100% of production of joint ventures. Marketing and Distribution Business In 2012, the Company actively responded to market changes, made adjustments to its operational tactics, and increased market share for its superior service and product quality. Coordinated and optimized logistics system combined with centralized procurement brought a drop in purchasing costs and logistics expenditures. In addition, imposition of enhanced quality supervision and a strict external procurement system guaranteed the quality of oil products. The total sales volume of oil products was 173 million tonnes in 2012, among which, domestic sales volume of oil products was 159 million tonnes, up by 5.2% from 2011, and retail sales volume of oil products increased rapidly by 7.6% from 2011. Meanwhile, the Company actively promoted one-stop service stations and specialty goods, and realized rapid growth in the non-fuel business. In 2012, the operating revenues of this segment were RMB1,471.9 billion, increased by 9.2 % over 2011. Within which, the sales revenues of gasoline totaled RMB 461.2 billion, which increased by 15.5 % comparing with the same period of 2011; the sales revenues of diesel and kerosene were RMB727.0 billion and RMB120.2 billion, and increased by 4.4 % and 17.7 %, respectively, over 2011. The operating profit of this segment was RMB42.7 billion, representing a decrease of 4.6 % comparing with 2011. Summary of Operations, Marketing and Distribution Segment Change from 2012 2011 2010 2011 to 2012 (%) Total sales volume of oil products (million 173.15 162.32 149.23 6.7 tonnes) Total domestic sales volume of oil products 158.99 151.16 140.49 5.2 (million tonnes) Including: Retail sales (million tonnes) 107.85 100.24 87.63 7.6 Direct sales (million tonnes) 33.25 33.22 32.40 0.1 Wholesale (million tonnes) 17.89 17.70 20.47 1.1 Annual average throughput per station 3,498 3,330 2,960 5.0 (tonne/station) Change from the end of the 31 December 31 December 31 December previous year 2012 2011 2010 to the end of the reporting period (%) Total number of service stations under Sinopec 30,836 30,121 30,116 2.4 brand Including: Number of company-operated service 30,823 30,106 29,601 2.4 stations Chemicals Business In 2012, in response to changing demand in markets, the Company made timely adjustments to facility utilization and production scheme, and reduced ethylene production by 4.5% from the previous year. During the year, the Company combined its production with market analysis and advancement in technology, optimized its product mix, actively developed new products and special materials, as well as increased the output of high-value-added products. Through optimizing the feedstock mix, reducing the cost of raw materials, keeping operations with a low-inventory level, and carrying out differentiated marketing, the Company played a leading role in the market, and realized a total sales volume of chemical products of 54.35 million tonnes, up by 7% over 2011. In 2012, the operating revenues of the chemicals segment were RMB 412.0 billion, representing a decrease of 2.0% as compared with that of 2011.This was primarily due to the continuing low demand for chemical products as a result of macroeconomic downturn, which had led to a major drop in chemical product prices. Operating profit for the chemicals segment was RMB1.2 billion, a reduction of RMB25.5 billion, 95.6% year-on-year. Summary of Operations, Chemicals Segment Unit: thousand tonnes Change from 2011 to 2012 2011 2010 2012 (%) Ethylene 9,452 9,894 9,059 (4.5) Synthetic resin 13,343 13,652 12,949 (2.3) Synthetic rubber 936 990 967 (5.5) Synthetic fiber monomer and polymer 8,950 9,380 8,864 (4.6) Synthetic fiber 1,339 1,388 1,393 (3.5) Note: Includes 100% of production of joint ventures. Research and Development In 2012, Sinopec filed 3,893 domestic and overseas patent applications, with 1,451 granted. The Company received The National Scientific Technology Progress Special Award for its safe and efficient exploration technology and industrialized utilization of major ultra-deep sour gas fields, and the Gold Award of China Patent was granted to the Company for its ethylbenzene production method from benzene and ethylene by alkylation and for its hydrofining method for caprolactam. HSE, Energy Conservation and Emission Reduction In 2012, the Company complied fully with HSE accountability standards, improved its rectification of potential hazards, enhanced its capabilities to respond to emergency, and achieved safe and clean production. The Company paid more efforts to implement a green, low-carbon development strategy, actively exploited renewable energy such as bio-mass, further developed its electric vehicle charging business, optimized the structure of its oil and gas resources, strengthened measures for environmental protection and treatment, implemented accountability measures for pollutants and CO2 emission reduction, improved and adjusted its industrial structure, actively promoted the new green, low-carbon technology, expedited key energy saving and emission reduction projects, fully implemented its energy management contract, sped up construction of its energy management information system and continued to perfect and implement a human-centered system for employees' welfare and health examinations. Compared with 2011, the Company's energy intensity dropped by 2.2%, industrial water demand increased by 0.37%, COD in waste water discharge dropped by 3.67% and sulfur dioxide discharge fell by 3.75%, while the industrial water recycling rate held steady at about 95% and the treatment rate on dangerous chemicals and gaseous, liquid and solid wastes reached 100%. For more detailed information, please refer to the Company's report on sustainable development. Capital Expenditure Capital expenditures of the Company was RMB168.968 billion in 2012, of which RMB79.071 billion was spent on the exploration and development segment, mainly for Shengli shallow water oilfield, Northwest Tahe oil fields, Ordos oil and gas field, Northeast Sichuan natural gas exploration and production project and Shandong LNG project, resulting in 6,183 thousand tonnes of newly built annual production capacity for crude oil and 4,663 million cubic meters of newly added annual production capacity for natural gas. RMB32.161 billion was used in the refining segment, mainly for revamping and expansion of refining projects, as well as producing clean energy products. The Company built and put into production a number of projects for oil products quality upgrading, including Sinopec Shanghai Petrochemical and Jinling Petrochemical Corp.; and successfully renovated a number of refinery projects in Anqing and Maoming. Capital expenditure for the marketing and distribution segment was RMB31.723 billion, mainly for construction and acquisition of high quality service stations along highway, in the centre of cities and newly planned urban areas. The Company accelerated construction of oil product pipelines and warehouses, improved its oil product sales network and promoted its non-fuel business and value-added services such as IC card. RMB23.616 billion was used in the chemical segment for mechanical completion of the Wuhan ethylene project; to prepare for the production of the Yizheng 1,4-butylene glycol, Anqing acrylonitrile and Luoyang polypropylene projects; and to continue with the construction of the Hainan aromatics, Yanshan butyl rubber and Guangzhou propylene projects. The corporate and others spent RMB2,397 million on purchasing R&D equipment and construction of information-technology projects. ASSETS ACQUISITION To further strengthen the resource reserves, oil and gas production and operating efficiency of Sinopec's upstream business, and enhance the long-term, balanced and sustainable development of its up, mid and down-stream businesses, the Board passed a resolution to form a 50:50 joint venture company ("JV HK") between the two wholly-owned subsidiaries of the Company and the Group, respectively. The JV HK will use its own funds and loans to acquire the equity interests of a number of overseas oil and gas assets owned by Sinopec Group for a total consideration of approximately USD3.0 billion, of which the Company will be responsible for approximately USD1.5 billion as a 50% JV HK partner. The Company will exercise effective control over the JV HK in accordance with the contractual arrangements. The reserve assessment report issued by the independent assessment agencies showed that the collective proved reserves (1P reserves) of the acquired assets accounted for a majority of the reserves, with 310 million barrels of proved and probable reserves (2P reserves). Upon the completion of the transactions, the scale of Sinopec's oil and gas reserves and crude production will increase. Crude proved reserves and production are expected to increase 9.0% and 11.2%, respectively, to 3.1 billion barrels and 365 million barrels. These transactions will enhance the potential of Sinopec's earnings and profitability. BUSINESS PROSPECTS Looking into 2013, the world economy is expected to recover slowly, with a trend of tepid growth persisting under the complex and precarious environment. While the Chinese economy is showing signs of stability and improvements, its domestic petroleum and petrochemical product markets are still under pressure from both domestic and overseas macroeconomic conditions. Crude oil price is expected to fluctuate within an elevated range during 2013. China's policies to implement and expedite adjustments in its industrial structure and to promote industrialization, urbanization, informatization, modernization in agriculture and growth in domestic consumer demand, as well as optimize the pricing mechanism for oil products and natural gas will combine to create favorable conditions for the Company's reform and development. In 2013, through safe and stable operations and its market-oriented strategy, the Company will emphasize the quality and efficiency of its development activities. Driven by improvements in management and technical innovations, the Company will strive to fully exploit its markets, optimize production and operations, take full advantage of its existing assets, and actively reduce its costs and expenses. In exploration, aiming at findings of oil and gas resources, the Company will make more efforts in exploring new blocks and fields, focus on major oil and gas blocks with potentials of additional reserve, and accelerate exploration activities for breakthroughs. In development, with southern Hubei and western Junggar as major targets, the Company is going to increase production in West China. Meanwhile, Efforts in East China and Northeast China will be expedited to create new areas with potential growth. The Company will conduct enhanced recovery in mature blocks; apply new technologies to increase recovery rates; strive for rapid growth in production and reserve of crude oil; build up production capacity in a number of blocks, such as Yuanba Gas Field; streamline logistic facilities, including pipelines, LNG terminals and gas storage reservoirs; extend the value chain of natural gas; increase market share; build up production capacities for the pilot project of Fuling shale gas; conduct in-depth fundamental research in shale oil and pursue major breakthroughs. In 2013, the Company plans to produce 46.43 million tonnes of crude oil and 18.1 billion cubic meters of natural gas. In refining segment, the Company will closely track and analyze oil price trend, optimize the procurement and allocation of crude oil and reduce the purchasing cost of crude oil. The Company will also utilize newly added refinery capacity and increase refinery throughput; actively upgrade the quality of oil products and supply cleaner oil products to the market; coordinate production with sales, making timely adjustments to product mix and refinery utilization to increase the production of well received products and high-value-added products; take the advantage of its consolidated sales function and optimize the marketing at for LPG, asphalt and paraffin wax. In 2013, the targets for refinery throughput and oil products output are slated at 238 million tonnes and 145 million tonnes respectively. The Company will seek to optimize its market monitoring system and enhance market analysis and forecasts to achieve maximum results in its marketing segment. Besides increasing its total sales volume, the Company will focus on the retail market and introduce special services to expand retail operations; promote standardized services to enhance customer loyalty; implement strict quality controls over outsourced oil products; and actively promote its non-oil product business, expand the brand name of Easyjoy online service, and increase sales volume and improve profitability. The target for total domestic sales of oil products is 165 million tonnes for 2013. In chemicals segment, the Company will further optimize the structure of raw materials, with a larger proportion of light chemical feedstock to reduce costs; produce more well received, profitable and competitive products with the tactics of "sales – oriented productions target, production – oriented supply volume and market promotion based on production"; integrate production, sales and research; make adjustments to product mix and promote the R&D, production and sales of new products; emphasize market analysis, optimize marketing strategy and enhance customer service; and improve management of the supply chain and carry out a low inventory level tactics with the aim of achieving 100% sales to production ratio. The company plans to produce 9.83 million tonnes of ethylene in 2013. APPENDIX FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES ("ASBE") For the years ended 31 December 2012 2011 Change 2010 Items RMB millions RMB millions % RMB millions Operating income 2,786,045 2,505,683 11.2 1,913,182 Operating profit 87,926 100,966 (12.9) 101,352 Profit before taxation 90,107 102,638 (12.2) 102,178 Net profit attributable to equity shareholders of the 63,496 71,697 (11.4) 70,713 Company Net profit attributable to equity shareholders of the Company 61,922 70,453 (12.1) 68,345 before extraordinary gain and loss Net cash flow from operating 143,462 151,181 (5.1) 171,262 activities At 31 December 2012 2011 Change 2010 Items RMB millions RMB millions % RMB millions Total assets 1,247,271 1,130,053 10.4 985,389 Total liabilities 696,670 620,528 12.3 532,707 Total equity attributable to equity shareholders of the 513,374 474,399 8.2 421,127 Company Total shares (10,000 shares) 8,682,029 8,670,256 0.1 8,670,253 FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS") Unit: RMB millions For the years ended 31 December Items 2012 2011 2010 2009 2008 Turnover, other operating 2,786,045 2,505,683 1,913,182 1,345,052 1,495,148 revenues and other income Operating profit 98,662 105,530 104,974 90,669 38,551 Profit before taxation 90,642 104,565 103,663 86,574 33,412 Profit attributable to equity shareholders of the 63,879 73,225 71,782 63,129 31,180 Company Basic earnings per share 0.736 0.845 0.828 0.728 0.360 (RMB) Diluted earnings per share 0.708 0.812 0.820 0.723 0.319 (RMB) Return on capital employed 9.09 11.49 12.95 11.67 5.92 (%) Return on net assets (%) 12.50 15.50 17.11 16.63 9.44 Net cash generated from operating activities per 1.640 1.737 1.965 1.909 0.997 share (RMB) Unit: RMB millions As at 31 December Items 2012 2011 2010 2009 2008 Non-current assets 901,678 801,773 735,593 697,474 635,533 Net current liabilities 148,358 101,485 76,177 114,442 126,570 Non-current liabilities 205,284 192,944 208,380 177,526 156,263 Non-controlling interests 37,122 35,016 31,432 25,991 22,324 Total equity attributable to equity 510,914 472,328 419,604 379,515 330,376 shareholders of the Company Net assets per share (RMB) 5.885 5.448 4.840 4.377 3.810 Adjusted net assets per share (RMB) 5.764 5.339 4.747 4.299 3.719 The following table sets forth the operating revenues, operating expenses and operating profit/(loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the change rate of 2012 compared to 2011. Year ended 31 December 2012 2011 Change RMB millions (%) Exploration and Production Segment Operating revenues 257,185 241,838 6.3 Operating expenses 187,131 170,207 9.9 Operating profit 70,054 71,631 (2.2) Refining Segment Operating revenues 1,270,912 1,212,072 4.9 Operating expenses 1,282,356 1,247,852 2.8 Operating loss (11,444) (35,780) (68.0) Marketing and Distribution Segment Operating revenues 1,471,882 1,347,626 9.2 Operating expenses 1,429,230 1,302,930 9.7 Operating profit 42,652 44,696 (4.6) Chemicals Segment Operating revenues 411,964 420,490 (2.0) Operating expenses 410,786 393,758 4.3 Operating profit 1,178 26,732 (95.6) Corporate and others Operating revenues 1,312,970 1,134,182 15.8 Operating expenses 1,315,413 1,136,822 15.7 Operating loss (2,443) (2,640) (7.5) Elimination of inter-segment profits (1,335) 891 — About Sinopec 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 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 Inquiries: Media Inquiries: Beijing Tel: (8610) 5996 0028 Tel: (8610) 5996 0028 Fax: (8610) 5996 0386 Fax: (8610) 5996 0386 Email: firstname.lastname@example.org Email: email@example.com Hong Kong Tel: (852) 2824 2638 Tel: (852) 3512 5000 Fax: (852) 2824 3669 Fax: (852) 2259 9008 Email: firstname.lastname@example.org Email: email@example.com SOURCE China Petroleum & Chemical Corporation
China Petroleum & Chemical Corporation Announces 2012 Annual Results
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