China Petroleum & Chemica (NYSE:SNP)

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Thursday, October 27, 2011

Comments & Business Outlook

Third Quarter 2011 Results

In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), in the first three quarters of 2011, the Company's operating income was RMB1,875.1 billion, up 31.3% from the same period in 2010. Net profit attributable to equity holders of the company was RMB59.96 billion and basic earnings per share was RMB0.692, both up 6.3% over the same period of last year.
In accordance with the International Financial Reporting Standards (IFRS), in the first three quarters of 2011, the Company's turnover, other operating revenues and other income amounted to RMB1,875.1 billion, up 31.3% from the same period in 2010. Net profit attributable to equity holders of the Company and basic earnings per share were RMB61.4 billion and RMB0.708 respectively, both up 8.8% over the same period of last year.

In the first three quarters of 2011, the Chinese economy continued to grow rapidly, domestic demand for refined oil and chemical products grew steadily. Sinopec has implemented resources, marketing, integration, internationalization, differentiation and low-carbon strategies, achieving continuous growth of production and operation. The exploration and production segment has increased domestic oil and gas output; the oil refining segment has been at high utilization rate to increase refined oil output; the marketing segment has raised the total volume of distribution; the volume of production and sales of chemical products have increased steadily. In the first three quarters, the Company has witnessed a steady improvement of the overall performance by leveraging advantages of the integration of upstream, mid-stream and downstream businesses, and overcoming the impact of refining loss caused by the controlled domestic price of oil products.

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Monday, August 29, 2011

Comments & Business Outlook

Financial Highlights for first half 2011

In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), in the first half of 2011, the Company's operating income was RMB 1,216.9 billion, up 31.7% from the same period in 2010. Net profit attributable to equity holders of the company was RMB 40.2 billion and basic earnings per share was RMB 0.464, both up 9.4% over the same period of last year.
In accordance with the International Financial Reporting Standards (IFRS), in the first half of 2011, the Company's turnover, other operating revenues and other income amounted to RMB 1,233.3 billion, up 31.5% from the same period in 2010. Net profit attributable to equity holders of the Company and basic earnings per share were RMB 41.2 billion and RMB 0.475 respectively, both up 11.9% over the same period of last year.
The Board of Directors declared a half year dividend of RMB 0.10 per share, a year-on-year increase of 25%.
Diluted earnings per share for first half 2011 $0.07 vs $0.06 in 2010

Mr. Fu Chengyu, Chairman of Sinopec commented, "Over a decade of development, Sinopec has increased the scale of its operations, enhanced its asset quality, improved its profitability, its risk aversion and its international operating capability. Sinopec has become a leading global, fully integrated energy and chemical company. In the first half of 2011, Sinopec further leveraged its fully integrated business model, continued to make operational improvements and demonstrated overall good operational performance.

He continued, "Looking forward, with the dedication of our management team and staff, we aim to become a first-class global energy and chemical company. We will spare no effort to carry out our strategies, which are centered around six areas: resourcing, marketing, integration of business segments, internationalization, differentiation and development of green and low-carbon energy. We will also closely monitor macro economic developments and will provide a timely response to any arising challenges."

"I am confident that, with the diligence and hard work of our team, we will be able to make Sinopec a truly first-class global company and provide greater value and returns to our shareholders."

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Monday, August 1, 2011

Comments & Business Outlook

TULSA, Okla., Aug. 1, 2011 (GLOBE NEWSWIRE) -- China Petroleum & Chemical Corporation (Sinopec) (NYSE:SNP) and Syntroleum Corporation (Nasdaq:SYNM) announced today the grand opening of the Sinopec/Syntroleum Demonstration Facility (SDF) located in Zhenhai, China. SDF is an 80 barrel per day facility utilizing the Syntroleum-Sinopec Fischer Tropsch technology for the conversion of coal, asphalt and petroleum coke into high value synthetic petrochemical feedstocks.

Sinopec and Syntroleum entered into a technology transfer agreement in 2009. As part of the agreement, Sinopec relocated Syntroleum's natural gas fed Catoosa Demonstration Facility to the Zhenhai Refining and Petrochemical Complex in Ningbo City, Zhejiang Province in China for joint technology demonstration and development. Upon successful completion of the Zhenhai program, Sinopec intends to build commercial scale coal and petroleum coke based Fischer Tropsch facilities using the Syntroleum-Sinopec technology.

"We are pleased to be working with Sinopec on the SDF," said Gary Roth, President and Chief Executive Officer of Syntroleum. "This facility will make a significant contribution to the global endeavor to pursue alternative feedstocks for growing economies."

China Petroleum & Chemical Corporation (Sinopec) is the first Chinese company that has been listed in Hong Kong, New York, London and Shanghai. The Company is an integrated energy and chemical company with upstream, midstream and downstream operations. The principal operations of Sinopec and its subsidiaries include: exploring, developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products; producing, trading, transporting, distributing and marketing refined oil products; and producing and distributing chemical products. Based on 2010 turnover, Sinopec is the largest listed company in China. The Company is one of the largest crude oil and petrochemical companies in China and Asia. It is also one of the largest gasoline, diesel and jet fuel and other major chemical products producers and distributors in China and Asia.

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Saturday, June 25, 2011

Liquidity Requirements

Our primary sources of funding have been cash provided by our operating activities, short-term and long-term loans. Our primary uses of cash have been for working capital, capital expenditures and repayment of short-term and long-term loans. We arrange and negotiate financing with financial institutions to finance our capital resource requirement, and maintain a certain level of standby credit facilities to reduce liquidity risk. We believe that our current cash on hand, expected cash flows from operations and available standby credit facilities from financial institutions will be sufficient to meet our working capital requirements and repay our short term debts and obligations when they become due.

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Tuesday, April 12, 2011

Comments & Business Outlook

CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2008, 2009 AND 2010

(Amounts in millions, except per share data)

			Years ended December 31,
	Note		2008			2009			2010
			RMB			RMB			RMB
Operating revenues
Sales of goods				1,413,203			1,315,915			1,876,758
Other operating revenues		3		31,088			29,137			36,424
				1,444,291			1,345,052			1,913,182

Other income		4		50,857			—			—

Operating expenses
Purchased crude oil, products and operating supplies and expenses				(1,270,586	)		(980,564	)		(1,482,484	)
Selling, general and administrative expenses		5		(39,420	)		(40,539	)		(51,048	)
Depreciation, depletion and amortization				(49,541	)		(54,016	)		(59,223	)
Exploration expenses, including dry holes				(8,310	)		(10,545	)		(10,955	)
Personnel expenses		6		(23,408	)		(28,895	)		(33,672	)
Taxes other than income tax		7		(57,214	)		(132,884	)		(157,189	)
Other operating expenses, net		8		(8,088	)		(6,910	)		(13,607	)
Total operating expenses				(1,456,567	)		(1,254,353	)		(1,808,178	)
Operating income				38,581			90,699			105,004

Finance costs
Interest expense		9		(12,842	)		(7,609	)		(7,972	)
Interest income				466			277			660
Unrealized gain / (loss) on embedded derivative component of the Convertible Bonds		24(c)		3,947			(218	)		(127	)
Foreign currency exchange losses				(958	)		(345	)		(609	)
Foreign currency exchange gains				3,278			429			1,074
Net finance costs				(6,109	)		(7,466	)		(6,974	)
Investment income				390			374			273
Income from associates and jointly controlled entities				580			2,997			5,390
Earnings before income tax				33,442			86,604			103,693
Tax expense		10		(3,624	)		(19,599	)		(25,689	)
Net income				29,818			67,005			78,004

Attributable to:
Equity shareholders of the Company				31,199			63,147			71,800
Non-controlling interests				(1,381	)		3,858			6,204
Net income				29,818			67,005			78,004

Earnings per share:
Basic		12		0.36			0.73			0.83
Diluted		12		0.32			0.72			0.82

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Monday, March 28, 2011

Comments & Business Outlook

Fourth Quarter Results:

In accordance with the PRC Accounting Standards for Business Enterprises (ASBE), the Company's operating income was $291 billion, up 42.2% from the same period in 2009.
Net profit attributable to equity holders of the company and basic earnings per share were $10.8 billion and $.12 respectively, representing an increase of 12.8% over the same period of last year.
The Board of Directors recommended a final dividend of $ 0.02 per share, bringing 2010 full year dividend to $ 0.03 per share.

Looking into the next five years, Sinopec will continue to implement a sustainable development approach amid complex situations at home and abroad. We aim to leverage our strengths while minimizing and addressing weaknesses. We will continue to implement our strategies on resource provision, market expansion, integration and international operations. We aim to shift the pattern of development and step up our restructuring initiatives. In order to enhance our competitiveness and commercial performance, we will expand resource sourcing and deepen market, capitalizing on the synergy from our integrated business model. We are also committed to the development of alternative energy and further globalization. We are confident to develop Sinopec into an international energy and chemical enterprise with strong core business and quality assets which owns advanced technologies and excellent management. The Company will also be financially sound and attractive and internally competitive.

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Sunday, March 29, 2009

Comments & Business Outlook

Looking into 2009, the persistent and widespread international financial crisis has exerted significant influence on domestic and global oil and chemical markets. Influenced by falling demand, the international oil prices are expected to fluctuate at a relatively low level for a certain period. The demand growth for refined oil products in the domestic market is expected to slow down. Due to the combined pressure of slower economic growth and a downward cyclical trend, the chemicals business will be facing more challenging situations.

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Saturday, January 31, 2009

Comments & Business Outlook

Guidance Report:

According to the preliminary calculations of the Financial Department of China Petroleum & Chemical Corporation, the net profit for the year 2008 will decrease by more than 50% compared to the corresponding period of previous year.

During the first half of 2008, the international crude oil prices had been continuously climbing. Due to the strict control over refined oil prices in the People’s Republic of China (the “PRC”), a distortion to the correlation of the refined oil prices and crude oil prices occurred. The Company has taken various measures to guarantee the supply for the refined oil market in the PRC, which resulted in great losses in the oil-refinery business. Moreover, in the second half of 2008, the price of and the demand for the chemical products declined significantly. A massive decline occurred in overall results of the Company in the year 2008 compared to the corresponding period of previous year.

The specific data will be disclosed in detail in the annual report of 2008. Investors are advised to exercise caution in dealing in the shares of the Company.

Source: SEC Filing 6K (January 23, 2009)

The GeoTeam® was able to locate these statements in a recent 8k filing, but was unable to locate a related press release.

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