China Petroleum & Chemical Corporation Announces 2012 Annual Results

     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: ir@sinopec.com  Email: media@sinopec.com
Hong Kong
Tel: (852) 2824 2638   Tel: (852) 3512 5000
Fax: (852) 2824 3669   Fax: (852) 2259 9008
Email: ir@sinopechk.com      Email: sinopec@brunswickgroup.com



SOURCE China Petroleum & Chemical Corporation
 
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