2013 First Quarter Results of Sinopec Corp. Recorded Remarkable Growth Year-on-Year

    2013 First Quarter Results of Sinopec Corp. Recorded Remarkable Growth
                                 Year-on-Year

PR Newswire

BEIJING, April 25, 2013

BEIJING, April 25, 2013 /PRNewswire/ -- China Petroleum & Chemical Corporation
("Sinopec Corp." or "the Company") (CH: 600028; HKEX: 386; NYSE: SNP; LSE:
SNP) today announced its unaudited first quarter results for the three months
ended 31 March 2013.

Financial Highlights:

  oIn accordance with the China Accounting Standards for Business Enterprises
    ("ASBE"), in Q1 2013, the Company's operating income was RMB 695.571
    billion, up 3.61% over the same period of last year, and operating profit
    was RMB 23.103 billion, up 24.04% over the same period of last year. Net
    profit attributable to equity shareholders of the Company was RMB 15.834
    billion, up 23.42% over the same period of last year. Basic and diluted
    earnings per share were RMB 0.179 and RMB 0.178 respectively, up 20.95%
    and 21.09% over the same period of last year.
  oIn accordance with the International Financial Reporting Standards
    ("IFRS"), in Q1 2013, the Company's turnover and other income was RMB
    695.571 billion, up 3.61% over the same period of last year. Operating
    profit was RMB 27.569 billion, up 26.41% over the same period of last
    year. Profit attributable to equity shareholders of the Company was RMB
    16.677 billion, up 24.40% over the same period of last year. Basic and
    diluted earnings per share were RMB 0.189 and RMB 0.188 respectively, up
    22.73% and 22.88% over the same period of last year.

Business Highlights:

  oExploration and Production Segment: The Company's crude oil and natural
    gas output increased steadily; crude oil output was 82.17 million barrels,
    with a growth of 0.78% over the same period of last year, natural gas
    output was 163.20 billion cubic feet, with a growth of 13.98% over the
    same period of last year. The realized price of crude oil fell by 6.85% to
    USD 98.83 per barrel, while the realized price of natural gas rose by
    3.90% to USD 5.86 per thousand cubic feet over the same period of last
    year. In the first quarter, the exploration and production segment
    realized an operating profit of RMB 16.23 billion, with a decrease of
    16.99% over the same period of last year.
  oRefining Segment: The Company processed 58.6923 million tonnes of crude
    oil, with a growth of 5.92% over the same period of last year; oil
    products output was 35.2953 million tonnes, with a growth of 7.39% over
    the same period of last year. In the first quarter, the refining segment
    realized a turn-around in profitability with an operating profit of RMB
    2.204 billion.
  oMarketing and Distribution Segment: The Company's domestic sales volume of
    oil products reached 38.917 million tonnes, with a growth of 1.70% over
    the same period of last year, among which, the retail sales volume reached
    26.641 million tonnes, with a growth of 1.74% over the same period of last
    year. In the first quarter, the marketing and distribution segment
    realized an operating profit of RMB 9.126 billion, with a decrease of
    11.20% over the same period of last year.
  oChemicals Segment: Ethylene output was 2.442 million tonnes, with a
    decrease of 0.53% over the same period of last year; the outputs of
    synthetic resin, synthetic rubber and synthetic fiber were 3.3948 million
    tonnes, 247.5 thousand tonnes and 351.6 thousand tonnes respectively. In
    the first quarter, the chemical segment realized an operating profit of
    RMB 164 million, with a decrease of 87.47% over the same period of last
    year.
  oCapital expenditure for the first quarter of 2013 amounted to
    approximately RMB 21.535 billion.

In the first quarter of 2013, the quantitative easing of major economies
stimulated the slow recovery of the global economy. National economy
maintained steady growth at the beginning of the year and China's GDP (gross
domestic product) increased by 7.7% over the same period of last year. On 26th
March, the National Development and Reform Commission circulated a new pricing
mechanism for oil products, to enable domestic oil product prices to
effectively reflect fluctuations of global crude oil prices. In the first
quarter, the Company highlighted the benefit of using safe and stable
operations and market orientation as the base for development. The Company has
been motivated by the strengthening of management and the progress in science
and technology innovation. This has enabled the Company to open up the market,
optimize production and operations, hence operational performance increased
significantly over the same period of last year.

BUSINESS REVIEW

Exploration and Production

The Company strengthened its oilfield exploration and development, which
resulted in an increase in the production of crude oil and natural gas. In the
area of petroleum exploration, progress was made in the old oil areas in East
China (such as Jiyang trough, etc), Tarim Basin and Ordos Basin. In the area
of development, initial progress was made in certain key projects for crude
oil development and production capacity construction. Initial results were
achieved in the comprehensive harnessing work in old areas; key natural gas
production projects in Yuanba and Western Sichuan were pushed forward. In the
first quarter, the Company's crude oil and natural gas output increased
steadily; crude oil output was 82.17 million barrels, with a growth of 0.78%
over the same period of last year, natural gas output was 163.20 billion cubic
feet, with a growth of 13.98% over the same period of last year. The realized
price of crude oil fell by 6.85% to USD 98.83 per barrel, while the realized
price of natural gas rose by 3.90% to USD 5.86 per thousand cubic feet over
the same period of last year. In the first quarter, the exploration and
production segment realized an operating profit of RMB 16.23 billion, with a
decrease of 16.99% over the same period of last year.

Refining

The refineries were able to operate at high capacity resulting in the
increased production of value-added products. This was due to an emphasis on
cost reduction, technical innovation and good management as well as from
remaining market orientated and focusing on the economic benefits. In the
first quarter, the Company processed 58.6923 million tonnes of crude oil, with
a growth of 5.92% over the same period of last year; oil products output was
35.2953 million tonnes, with a growth of 7.39% over the same period of last
year. The refining segment made a profit instead of suffering a loss compared
with the same period of last year, and realized an operating profit of RMB
2.204 billion.

Marketing and Distribution

In the face of lower growth rate of domestic market demand for oil products
and the intensification of market competition, the Company brought into play
its advantages of systematic management, marketing network and brand value, to
innovate the commercial mode of the non-fuel business. In the first quarter,
the Company's domestic sales volume of oil products reached 38.917 million
tonnes, with a growth of 1.70% over the same period of last year, among which,
the retail sales volume reached 26.641 million tonnes, with a growth of 1.74%
over the same period of last year. In the first quarter, the marketing and
distribution segment realized an operating profit of RMB 9.126 billion, with a
decrease of 11.20% over the same period of last year.

Chemicals

The first quarter of 2013 experienced a difficult market environment for
chemicals with high feedstock price, sluggish demand and declining product
prices. The Company upheld market-oriented and benefit-centered principle,
steadily pushed forward integrated business operation, maintained the safe and
stable operation of chemical plants, optimized feedstock mix and product
slate, accelerated the transformation of chemical business from production
type to marketing type. In the first quarter, ethylene output was 2.442
million tonnes, with a decrease of 0.53% over the same period of last year;
the outputs of synthetic resin, synthetic rubber and synthetic fiber were
3.3948 million tonnes, 247.5 thousand tonnes and 351.6 thousand tonnes
respectively. In the first quarter, chemical segment realized an operating
profit of RMB 164 million, with a decrease of 87.47% over the same period of
last year.

Capital Expenditure

Capital expenditure of the Company was approximately RMB 21.535 billion in the
first quarter, of which RMB 9.416 billion was spent on the exploration and
production segment. RMB 2.837 billion was spent on the refining segment.
Capital expenditure for the chemical business and marketing and distribution
segment was RMB 2.277 billion and RMB 6.396 billion respectively. Capital
expenditure for the Headquarters' scientific research facilities and IT
projects was RMB 609 million.

Operational Data for the First Quarter

                                                   For three-month
                                                   period
Operational Data           Unit                                      Changes (%)
                                                   ended 31 March
                                                   2013     2012
Exploration and Production
Oil and gas production     million BOE             109.37   105.39   3.78
(Note 1)
Crude oil production       million barrels         82.17    81.53    0.78
Of which: Domestic         million barrels         76.22    75.78    0.58
 Oversea        million barrels         5.95     5.75     3.48
Natural gas production     billion cubic feet      163.20   143.18   13.98
Realized crude oil price   USD/barrel              98.83    106.10   (6.85)
Realized natural gas price USD/thousandcubicfeet 5.86     5.64     3.90
Refining (Note 4)
Refinery throughput        10thousandtonnes      5,869.23 5,541.04 5.92
Gasoline, diesel and       10 thousand tonnes      3,529.53 3,286.76 7.39
kerosene production
Ofwhich:      Gasoline    10 thousand tonnes      1,134.70 965.30   17.55
               Diesel      10 thousand tonnes      1,975.87 1,963.52 0.63
               Kerosene    10 thousand tonnes      418.96   357.94   17.05
Light chemical feedstock   10 thousand tonnes      976.52   925.69   5.49
Light products yield       %                       76.44    76.71    (0.27)
                                                                     percentagepoints
Refining yield             %                       94.72    94.99    (0.27)
                                                                     percentage points
Marketing and Distribution
Total sales of refined oil 10 thousand tonnes      4,212.97 4,135.01 1.89
products
Total domestic sales of    10 thousand tonnes      3,891.70 3,826.50 1.70
refined oil products
Of       Retail            10 thousand tonnes      2,664.10 2,618.50 1.74
which:
         Distribution     10 thousand tonnes      762.90   808.50   (5.64)
         Wholesale         10 thousand tonnes      464.70   399.50   16.32
Total number of domestic   stations                30,685   30,836   (0.49)
service stations (Note2)
Of       Companyownedand stations                30,672   30,823   (0.49)
which:   company-operated
Throughput per domestic
station                    tonnes/station          3,473    3,450    0.67
of company owned and
company-operated (Note3)
Chemicals (Note 4)
Ethylene                   10 thousand tonnes      244.20   245.51   (0.53)
Synthetic resins           10 thousand tonnes      339.48   343.16   (1.07)
Synthetic rubbers          10 thousand tonnes      24.75    24.26    2.02
Monomers and polymers for  10 thousand tonnes      226.70   233.28   (2.82)
synthetic fibers
Synthetic fibers           10 thousand tonnes      35.16    33.78    4.09


Note 1: Including 100% of SSI output; For domestic production of crude oil, 1 tonne =
7.1 barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet; for
converting natural gas to oil, 1 BOE = 6,000 cubic feet; for production of crude oil
in Africa, 1 tonne = 7.27 barrels.

Note 2: The number of service stations in 2012 was the number as at 31 December 2012.

Note 3: Throughput per service station data was an annualized average.

Note 4: Including 100% output of the joint ventures companies.



APPENDIX

Principal financial data and indicators



FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH CHINA ACCOUNTING
STANDARDS FOR BUSINESS ENTERPRISES ("ASBE")


                                                        Changesfrom
                                                        the end of the
Items                As at 31            As at 31       preceding year to
                     March2013      March2012     the end of the
                                                        reporting period
                                                        (%)
Total assets (RMB    1,290,018           1,247,271      3.43
millions)
Equity attributable
to equity
shareholders of the  549,425             513,374        7.02
Company (RMB
millions)
Net assets per share
attributable to      6.127               5.913          3.62
equity shareholders
of the Company (RMB)
                     
                                         In the same
                     In the reporting    period of the  Changes over
Items                period              preceding year the same period
                                                        of the preceding
                                                      year (%)

                     
Net cash flows from
operating activities 8,220                              -
(RMB millions)
Net cash flows from
operating activities 0.093                              -
per share (RMB)
                     
                                         In the same
                     In the reporting    period of the  Changes over
Items                period              precedingyear the same period
                                                        of the preceding
                                                      year (%)

                     
Net profit
attributable to
equity shareholders  15,834              12,829         23.42
of the Company (RMB
millions)
Basic earnings per   0.179               0.148          20.95
share (RMB)
Diluted earnings per 0.178               0.147          21.09
share (RMB)
Basic earnings per
share after
deducting            0.180               0.148          21.62
extraordinary
gain/loss items
(RMB)
Weighted average                                        0.32
return on net assets 2.98                2.66           percentage
(%)                                                     points
Weighted average
return on net assets                                    0.32
after deducting      2.99                2.67           percentage
extraordinary                                           points
gain/loss items (%)
Extraordinary gain/loss items   Three-month period ended 31 March 2013
                                (Gain)/Loss (RMB millions)
Loss on disposal of non-current 33
assets
Donations                       53
Gain on holding and disposal of (19)
various investments
Other non-operating income and  10
expenses, net
Subtotal                        77
Tax effect                      (19)
Total                           58
Attributable to: Equity         47
shareholders of the Company
Minority interests              11



FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS PREPARED IN
ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS")
                                                         Changes from
                                                         the end of the
Items               As at 31         As at 31            preceding year
                    March2013  March2012      to the end of the
                                                         reportingperiod
                                                         (%)
Total assets (RMB   1,304,067        1,266,693           2.95
millions)
Equity attributable
to equity
shareholders of the 546,871          510,914             7.04
Company (RMB
millions)
Net assets per
share attributable
to equity           6.099            5.885               3.64
shareholders of the
Company (RMB)
                    In the           In                  Changes over
Items                                thesameperiodof  the same period
                    reporting period the preceding year  of the preceding
                                                         year (%)
Net cash generated
from operating      8,111            (30,970)            -
activities (RMB
millions)
Net profit
attributable to
equity shareholders 16,677           13,406              24.40
of the Company (RMB
millions)
Basic earnings per  0.189            0.154               22.73
share (RMB)
Diluted earnings    0.188            0.153               22.88
per share (RMB)
                                                         0.30
Return on net       3.05             2.75
assets (%)                                               percentage
                                                         points

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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