China Petroleum & Chemical Corp (NYSE:SNP)

BEIJING, March 30, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2019.

Financial Highlights

In accordance with IFRS, the Company's turnover and other operating revenues reached RMB 2.97 trillion, up 2.6% year-on-year at a historic high; Operating profit increased 4.8% year-on-year; Profit attributable to equity shareholders of the Company was RMB 57.5 billion. Basic earnings per share were RMB 0.475.
In accordance with ASBE, the Company's operating profit was RMB 90.0 billion. Profit attributable to shareholders of the Company was RMB 57.6 billion. Basic earnings per share were RMB 0.476.
In accordance with IFRS, the Company's liability-to-asset ratio as at the end of 2019 was 50.04%, maintaining a sound financial position. Cash and cash equivalents amounted to RMB 60.3 billion as at 31 December 2019,
In upstream, greater efforts were made in oil and gas exploration, achieving satisfactory results in increasing reserves, stabilizing oil production, increasing gas output, and reducing costs. The domestic oil and gas reserve replacement ratio reached 138.7%, and market share of natural gas further increased. Operating profit of the refining segment totaled RMB 30.6 billion; Operating profit of the chemicals segment was RMB 17.2 billion; Operating profit of the marketing and distribution segment was RMB 29.1 billion.
Taking into account the Company's profitability, shareholder returns and the future development, the Board of Directors proposed a final dividend of RMB 0.19 per share. Combined with the interim dividend of RMB 0.12 per share, the total dividend for the year is RMB 0.31 per share. Dividend payout ratio reached 65.3%.

Business Highlights

In 2019, the global economy slowed down while China maintained an overall stable with its gross domestic product (GDP) up by 6.1%. International oil prices fluctuated in a wide range while domestic market saw rapid growth demand for natural gas and fierce competition in oil products due to abundant supply, and chemicals prices decreased. The Company actively addressed market changes by pursuing innovative, coordinated, green, open and shared development. Through implementing specialized development, market-oriented operation, internalisation and overall coordination, we pushed forward all aspects of our work, and achieved solid operating results.

Exploration and Production segment: pressed ahead with high efficiency exploration and profit-oriented development, continuously reduced cost and expenditure on all fronts. Tangible results were achieved in maintaining oil production, increasing gas output and reducing cost. We reinforced venture exploration and preliminary exploration in new areas which led to new discoveries in Tarim, Sichuan and Erdos basins. In natural gas development, we constantly pushed forward capacity building in Fuling, Weirong, and West Sichuan gas fields, expanded the market and sales, and promoted coordinated development along the value chain.
Refining segment: continuously optimised product mix and the production volume of high-value-added products have been further increased. We optimised the production plan for low sulfur fuel oil and reduced cost. We leveraged our advantage in production and sales, and moderately increased export of oil products. We made structural adjustments, comprehensively optimized production and ensured safety and reliability of the refining facilities. We improved the marketing and distribution systems and realised a growth momentum in high grade products.
Marketing and Distribution segment: brought our advantages of integrated production and marketing network into full play, adhered to the guideline of "achieving gains in both sales volume and profits", coordinated allocation of resources, expanded sales and increased profit, and achieved sustained growth in both total sales volume and retail scale. We strengthened development and marketing of company-owned brands, and promoted the innovation of non-fuel business model and its market-oriented reform, to speed up the development of non-fuel business.
Chemicals segment: adhered to the development philosophy of "basic plus high-end", sped up advanced capacity building. We optimized products slate, enhanced integration among production, marketing, R&D and application, vigorously promoted the development and application of new products, and raised the proportion of new and specialty products. We deepened targeted marketing and service, realizing full sales.

Mr. Zhang Yuzhuo, Chairman of Sinopec Corp. said, "In 2019, global economy slowdown while China's economy remained overall stable. With international oil prices fluctuating within a wide range and new production capacity for refinery and petrochemicals being excessively released, market competition increased dramatically. As a result, the internal and external risks and challenges faced by the Company have increased significantly. In such a complicated and difficult market, with focus on both short and long-term goals in mind, the Board of Directors adhered to the guideline of pursuing progress while maintaining stability. Furthermore, it concentrated on modernizing the company's corporate governance systems and capabilities, and deepening reforms to sustain continuous growth and development. Under the management's leadership, our employees demonstrated dedication and a conscientious and responsible work spirit, and implemented all practices with discipline and in a professional manner. Significantly, the Company achieved better than expected operating results and made new progress in all fronts as we continuously deepened reform, exercised effective risk management, stabilised growth, and adjusted the operating structure while guaranteeing safety. Looking into 2020, the global economy will face more instability and uncertainty brought by the outbreak. Although the Chinese economy may be temporarily impacted, China's solid economic fundamentals will remain unchanged. We believe that as the control and prevention of outbreak continues to improve domestically, the domestic demand for petroleum and petrochemical products that was suppressed and frozen will rebound quickly.the Company will continue to adhere to the overall strategy of "making progress while maintaining stability," and to that end will implement new development philosophies and energy security strategies, as well as further strengthen corporate governance. The Company will also continue to focus on supply-side structural reform and continue to leverage its advantages of integration, aiming to realize a development pattern with energy resources as the backbone, clean energy and synthetic materials as two development wings, and new energy, new economies, and new fields as important growth points. The Company will continue to deepen the reform of its systems and mechanisms, further improve its corporate governance system and enhance governance capabilities. With headquarters acting as the center of restructuring, the Company will further advance reforms of its management system and market-oriented operation mechanism. It will strengthen construction of its systems, improve management, and better mobilize initiatives in every aspect so as to constantly increase the ability to create synergies, raise efficiency and mitigate risks. I firmly believe that with the concerted efforts of our Board of Directors, management and entire staff, as well as support from our shareholders and the community, Sinopec Corp. will surely develop in distinct ways that are more efficient and of higher quality, which in turn will create greater value for shareholders and the community."

Business Review

Exploration and Production

In 2019, we implemented the action plan of redoubling efforts in oil and gas exploration and production, actively pressed ahead with high-efficiency exploration and profit-oriented development, accelerated the systematic integration of natural gas production, supply, storage and marketing, continuously reduced cost and expenditure on all fronts, and achieved tangible results in maintaining oil production, increasing gas output and cutting cost. We reinforced venture exploration and preliminary exploration in new areas which led to new discoveries in Tarim, Sichuan and Erdos basins. The Company's newly added proved reserves in China reached 587 million barrels of oil equivalent, with domestic reserve replacement ratio at 138.7%. In crude oil development, we proceeded with the capacity building in Shunbei oilfield, strengthened profitable production capacity of hard-to-recover reserves in mature fields, intensified EOR technology breakthrough and application, and ensured steady production. In natural gas development, we constantly pushed forward capacity building in Fuling, Weirong, and West Sichuan gas fields, expanded the market and sales, and promoted coordinated development along the value chain. The Company's production of oil and gas reached 458.92 million barrels of oil equivalent, with domestic crude production reaching 249.43 million barrels and natural gas production totaling 1,047.78 billion cubic feet, up by 7.2% year on year.

In 2019, the operating revenues of this segment was RMB 210.7 billion, representing an increase of 5.3% over 2018. This was mainly attributed to the rise of realised price and sales volume in natural gas as a result of the expansion of natural gas business. In 2019, the operating profit of the exploration and production segment was RMB 9.3 billion, representing an increase of RMB 19.4 billion compared with 2018. The segment reinforced efficient exploration and profit-oriented development, enhanced stable production of crude oil, accelerated construction of natural gas production-supply-storage-sale system and actively expanding market and promoting sales, strengthened cost control, and effectively improved profitability.

Chemicals

In 2019, the Company followed the development philosophy of "basic plus high-end", sped up advanced capacity building, and optimised business portfolio layout. We persistently fine-tuned chemical feedstock mix to increase the yield and lower cost. We optimized products slate, enhanced integration among production, marketing, R&D and application, vigorously promoted the development and application of new products, and raised the proportion of new and specialty products. We further adjusted facility structures to enhance the dynamic optimisation of facilities and product chain, and improved the utilisation based on market demand. Ethylene production in 2019 reached 12.49 million tonnes, up by 8.5% year on year. The differential ratio of synthetic fiber reached 90%, and the ratio of new and specialty products in synthetic resin reached 65.3%. We also promoted targeted marketing and service to further expand our business, with total chemical sales volume increased by 3.3% to 89.50 million tonnes, realising full sales.

In 2019, the operating revenue of the chemicals segment was RMB 495.2 billion, representing a decrease of 9.4% as compared with that of 2018. This was mainly due to sharp decrease in prices of chemical products as a result of the concentrated release of new capacity, as well as the change of supply-demand structure. In 2019, confronted with the business cycle correction and decreased chemical margin, the Company strengthened the coordination among research, development, production and marketing, continuously reinforced the profit prediction based on the market, optimised the structures of feedstock, product and facilities,, intensified allocation of resources, pushed ahead with targeted marketing and precise service strategy, and achieved steadily growing sales volume of petrochemicals. The operating profit of this segment was RMB 17.2 billion.

Research and Development

In 2019, with the emphasis on innovation-driven strategy, the Company accomplished notable results in deepening reform of R&D mechanism, promoting innovation platforms such as joint R&D centers and incubators, and making breakthrough in key and frontier technologies. In upstream, research in gas enrichment theory and exploration technologies of marine phase medium and large gas fields in Sichuan Basin made headway, leading to breakthrough in gas reserve. Our proprietary rotary steering drilling system was successfully applied in Shengli oilfield. In refining, we developed various formulations for low sulphur fuel oil and passed engine tests and endurance tests. Our high-grade gasoline and diesel engine oil met the latest international standards and realised industrial production and commercialization. In chemicals, the start-up of the second generation high-efficiency and environment-friendly aromatics facilities was successfully started up. The anthraquinone method of producing hydrogen peroxide in fluidised-bed reactor and PPTA technology realised industrialization. In addition, the framework type code of a novel structured zeolite SCM-15 synthesised by us has been approved by the Structure Commission of International Zeolite Association. In 2019, the Company had 6,160 patent applications at home and abroad, among which 4,076 were granted. We also won six second prizes of National Sci-Tech Progress and one second prize of NationalTechnology Invention, and one gold, three silver and three excellent prizes of National Patent Awards.

Health, Safety, Security and Environment

In 2019, the Company constantly promoted and fully implemented the HSSE management system. We enhanced overall health management, and established safeguarding mechanism for occupational, physical and psychological health. We surveyed and rectified safety hazards, took stringent measures to control risks and supervise safety and operations of contractors, and achieved sound results. We upgraded our capacity in all-dimension risk prevention and control as well as emergency response, further enhancing security management. In 2019, we actively practiced green and low-carbon growth strategy, further promoted the green enterprise campaign and ecological conservation, and accomplished all emission reduction targets. Compared with 2018, energy consumption per 10,000 yuan of output was down by 0.4%, industrial fresh water usage was down by 1.1%, COD of discharged water down by 2.1%, and SO2 emissions down by 3.9%. All solid waste was properly treated. For more detailed information, please refer to "Communication on Progress for Sustainable Development 2019 of Sinopec Corp."

Capital Expenditures

In 2019, focusing on quality and profitability of investment, the Company continuously optimised its capital projects, with total capital expenditures of RMB 147.1 billion. Capital expenditure for the exploration and production segment was RMB 61.7 billion, mainly for Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas projects, phase I of Xinqi gas pipeline, phase I of Erdos-Anping-Cangzhou gas pipeline, Qingdao-Nanjing gas pipeline, Wen 23 and Jintan gas storage projects, as well as overseas projects. Capital expenditure for the refining segment was RMB 31.4 billion, mainly for Zhongke Refining and Petrochemical project, Zhenhai, Tianjin, Maoming and Luoyang refining upgrading projects. Capital expenditure for the marketing and distribution segment was RMB 29.6 billion, mainly for construction of service stations, oil products depots, pipelines and non-fuel business. Capital expenditure for the chemicals segment was RMB 22.4 billion, mainly for Zhongke, Zhenhai, Gulei and Hainan projects, ethylene revamping for Sinopec-SK and Sinopec-SABIC projects, phase II of Hainan high-efficiency and environment-friendly aromatics project, Sinopec-SABIC polycarbonate project and Zhongan coal chemical project. Capital expenditure for corporate and others was RMB 2 billion, mainly for R&D facilities and information technology projects.

Business Prospects

In 2020, despite the increasing instability and uncertainty of the international political and economic situation, and the inevitable impact on China's economy by coronavirus outbreak in the short term, we expect the fundamentals sustaining sound economic growth in China to remain unchanged. Domestic demand for energy and chemical products will be relatively weak in the first half, but the accumulated demand is expected to be released rapidly after outbreak. Considering oil-producing countries' abundant supply capacity, global demand growth, inventory levels, and geopolitics, we expect that the international oil prices will fluctuate at a low level.

In 2020, adhering to the principles of "reform, management, innovation, and development", the Company will focus on optimisation of the entire business value chain, as well as market expansion, risk prevention, and seizing opportunities so as to do our best to reduce the negative impact of the coronavirus outbreak and the slump of crude oil price, and strive to achieve healthy business performance. Due to the outbreak, the adjustment of the Company's production plan for 2020 is currently underway. We will confirm the production plan according to the market trends in the future.

Exploration and Production, under the low oil price circumstance, we will optimise projects implementation, enhance high-quality exploration, and reduce cost and expenditure to expand resource base and realize sustainable development. In crude oil development, more efforts will be made in promoting capacity building of Shunbei Oilfield, Tahe Oilfield, and the Oilfield at the western margin of the Junggar Basin, and we will strengthen profit-oriented development of mature fields. In natural gas development, we will accelerate capacity construction of key projects, and promote integration of production, supply, storage and marketing so as to maximize the value of the business chain. Preliminarily, we plan to keep a stable production volume of curde oil and realise a positive growth for nature gas.

Refining, under low oil price circumstance, with the coordination of production and sales, domestic and overseas markets, the Company will optimize utilization rate and production scheduling, and promote efficient operation of its refining business chain. We will optimize the allocation of crude oil, coordinate crude oil supply chain, and reduce procurement costs. More efforts will be made in restructuring product slate, increasing products tailoring for market demand and changes. We will accelerate low-sulfur bunker fuel projects and the revamping of storage and transportation facilities to rapidly expand market share.

Marketing and Distribution, balancing volume and profit, and leveraging the advantages of integration of production and sales, the Company will continuously improve the quality of its operations. We will vigorously carry out targeted and differentiated marketing to continuously improve our services with focus on customer need. We will accelerate the construction of smart service stations, coordinate the layout of natural gas and hydrogen stations, and consolidate and expand network advantages. More efforts will be made in boosting innovation in non-fuel business models, vigorously developing proprietary brands, creating differentiated competitive advantages, so as to drive rapid growth in non-fuel business.

Chemicals, the Company will focus on the "basic + high-end" development concept, speed up advanced capacitybuilding, continuously deepen structural adjustment, and improve our competitiveness and profitability. We will optimize facilities and product chain, and improve utilization rate and production scheduling based on market demand. Efforts will be made in adjusting feedstock slate to improve product yield and reduce cost. We will coordinate production, marketing, research and application, and redouble our efforts in developing new products and increase the production of high value-added products. Meanwhile, we will improve targeted marketing and services, enhance e-commerce platforms, actively explore overseas markets and continuously expand market share.

Research and Development, we will continue to implement the innovation-driven development strategy, deepen mechanism reform, accelerate key technology breakthrough, improve innovation capabilities to strive for quality development. In oil and gas exploration and development, we will strive to make technology breakthrough in ultra-deep oil and gas, tight oil and gas, shale oil and gas, etc. In refining, we will accelerate the research of heavy oil processing, oil quality upgrading, and promote the application of technologies such as needle coke. In chemicals, we will continuously improve the package technologies of ethylene and aromatics, strengthen the research and development of photoelectric materials and degradable materials, and accelerate the industrialization of large-tow high-performance carbon fibers. At the same time, we will focus on advancing research on cutting-edge technologies and new areas to achieve future business development through technology innovation.

Capital Expenditures, preliminary capital expenditures for the year 2020 are budgeted at RMB 143.4 billion. We will dynamically optimise capital projects based on future market trends. Preliminarily, RMB 61.1 billion will be invested in exploration and production with focuses on the production capacity building of Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas field, and the construction of natural gas pipelines and storage facilities as well as overseas oil and gas projects. The refining segment will account for RMB 22.4 billion, mainly on the construction and commissioning of the Zhongke project, and structural adjustment projects of Zhenhai, Tianjin, Maoming, Luoyang. RMB 22.0 billion is budgeted for marketing and distribution with emphasis on service stations, depots and storage facilities for refined oil products, pipelines and non-fuel business. The share for chemicals will be RMB 32.3 billion which will be used on the construction of Zhongke, Zhenhai and Gulei projects, ethylene revamping of Sinopec-SK and Sinopec-SABIC projects, Sinopec-SABIC polycarbonate project, Jiujiang aromatics project and Zhong An coal chemical project. The capital expenditure for corporate and others will be RMB 5.6 billion, mainly for R&D facilities and information technology projects.

BEIJING, Dec. 27, 2019 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028;NYSE: SNP) has announced a significant breakthrough as its self-developed Sinomacs ATS I type rotary steerable drilling system drilled to a depth of 857 meters after working 141 hours non-stop from December 13 to 19 in an oil well in SLOF (Shengli Oil Field), Shandong Province.

The build-up rate of Sinomacs ATS I reached a maximum of 6.6 degrees per 30 meters, the overall performance was commented by notable drilling rig technology expert Liu Rushan as "landmark results that solved the problems associated with traditional rotary drilling systems."

The steerable rotary drilling system is the farsighted and fleet-footed assistant of the drill that enables faster drilling in underground gas and oil reservoirs at a lower cost. It's the preferred technology of petroleum companies to complete horizontal well drilling due to its ability to hit targets every time according to the designed track accurately. 

More than 40 percent of the directional wells in the world are implementing this system, but it's an immensely difficult technology to develop due to a large number of fields involved in the R&D process.

The Sinopec R&D team started from scratch with a design principle and calculation born from countless experiments, tests and stimulations on the mechanical components, electronics and software. The first static push-type steerable rotary drilling system was created in December 2012.

One year later, Sinopec's steerable rotary drilling system marked continuous success across four modules of ground monitoring, two-way communication, MWD and downhole steering control in field tests.

Since 1999, Sinopec has researched and developed the steerable rotary drilling system independently. After 20 years, it has finally become a complete technology and equipment system with proprietary intellectual property rights.

"Even when the petroleum market was slow, Sinopec invested tremendous resources in ensuring the R&D of the steerable rotary drilling system," said Chen Xikun, vice chairman and executive director of Sinopec Oilfield Service Corporation.

"Sinopec will continue to develop and promoting the application of the steerable rotary drilling system to mass-produce the technology in the future so that Sinopec's gas and oil services will move towards the path of high-end and professional development."

BEIJING, March 25, 2019 /PRNewswire/ -- China Petroleum & Chemical Corporation ( "Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2018.

Financial Highlights

• In accordance with IFRS, the Company's turnover and other operating revenues reached RMB 2.89 trillion. Profit attributable to equity shareholders of the Company was RMB 61.6 billion, up 20.2% year-on-year. Basic earnings per share were RMB 0.509.
• In accordance with ASBE, the Company's operating profit was RMB 101.5 billion, up 16.7% year-on-year. Profit attributable to shareholders of the Company was RMB 63.1 billion, up 23.4% year-on-year. Basic earnings per share were RMB 0.521.
• In accordance with IFRS, the Company's liability-to-asset ratio as at the end of 2018 was 46.21%, which represented a slight decrease of 0.33 percentage points compared with the end of the previous year. The Company maintained a sound financial position. Cash and cash equivalents amounted to RMB 111.9 billion as at 31 December 2018, maintaining at a healthy level.
• In upstream, we made great efforts to enhance oil and gas exploration and production and achieved domestic crude oil reserves replacement ratio of 132%. Meanwhile, we pushed ahead with the construction of natural gas production, supply, storage and marketing system, rapidly increasing natural gas production and sales volume. Operating profit of the refining segment totaled RMB 54.8 billion; Operating profit of the chemicals segment was RMB 27.0 billion; Operating profit of the marketing and distribution segment was RMB 23.5 billion.
• Taking into account the Company's profitability, shareholder returns and the future development, the Board of Directors proposed a final dividend of RMB 0.26 per share. Combined with the interim dividend of RMB 0.16 per share, the total dividend for the year is RMB 0.42 per share. Dividend payout ratio and dividend yield reached 82.5% and 7.4%, respectively.

Business Highlights

In 2018, the global economic recovery was slow while China maintained an overall stable economic performance with its GDP up by 6.6%. International oil prices fluctuated in a wide range. Domestic demand for natural gas grew rapidly. Domestic oil products market saw fierce competition because of oversupply, and demand for chemicals increased steadily. Meanwhile, China's environmental regulations became more stringent. The Company actively coped with market changes by focusing on reform, management, innovation and development. We coordinated all aspects of our work by pressing ahead measures for optimised operation, market expansion, cost reduction, risk control, reform promotion, and management enforcement, which helped the company achieve solid operating results.

• Exploration and Production segment: pressed ahead with high efficiency exploration and profit-oriented development, continuously reduced cost and expenditure on all fronts. Tangible results were achieved in maintaining oil production, increasing gas output and reducing cost. We reinforced preliminary exploration in new areas and strengthened integrated detailed evaluation in mature fields, which led to new discoveries in Tarim, Yin'e and Sichuan basins. In natural gas development, we constantly pushed forward capacity building in Hangjinqi of Neimongol, the eastern slope of west Sichuan Depression and Weirong shale gas fields. We optimised production and distribution and promoted a coordinated growth along the value chain.
• Refining segment: continuously optimised product mix and the production volume of high-value-added products have been further increased. We proactively promoted structural adjustment and quality upgrading projects, the GB VI standard upgrading is completed successfully. Optimisation of production plans and resources allocation were carried out to reduce crude oil cost.
• Marketing and Distribution segment: aimed to achieve a balance between sales volume and profits; brought our advantages of integrated business and distribution network into full play and confronted with fierce market competition, thus, achieved sustained growth in both total domestic sales volume and retail scale. Non-fuel business maintained rapid growth.
• Chemicals segment: adhered to the development philosophy of "basic plus high-end" to enhance effective supply; intensified its efforts to enhance the efficiency of the integration among production, marketing, R&D, and application. The ratio of high-value-added synthetic products continued to increase. Total chemical sales volume achieved robust growth.

Mr. Dai Houliang, Chairman of Sinopec Corp. said, "In 2018, we adhered to the general principle of making progress while maintaining stability, following the new development philosophy and requirements for high-quality development, we fully exerted the advantages of the integrated value chain. We made great efforts in optimizing operation, expanding market, reducing costs, controlling risks, deepening reforms, reinforcing management, and launching the Talent Empowering Enterprise Scheme. We successfully dealt with various risks and challenges, made progress in many aspects and pushed forward the sustainable development in an all-round way. We constantly improved the Company's development quality by optimising production and operation, actively expanding markets, accelerating structural adjustment, and further promoting scientific and technological innovations, which strengthened our competitiveness. In 2019, the Company will adhere to the overall strategy of pursuing progress while maintaining stability, fulfill our due responsibilities and make more efforts in implementing our plans so as to lay solid foundation for sustainable development. Meticulous planning will be made to secure stable operation and to boost operational quality and profitability. Besides, we will strive to implement reform and to improve motivation and incentive mechanisms. Foundation will be consolidated, risk control will be strengthened, and operation and management standards will be further enhanced. In addition, we will strongly promote technological innovations to drive our future growth. We advance structural reform by building a solid resource foundation for sustainable development, strengthening the overall competitiveness of the value chain of refining and marketing businesses, and enhancing our capability in high-end production and value creation of chemical business. With an aim to build the Company into a green enterprise with high quality, we will make vigorous efforts in pollution prevention and environmental protection to raise the level of our green development. Moreover, we will explore and capture strategic emerging business opportunities through financial investments, thereby cultivating new growth drivers."

Business Review

Exploration and Production

In 2018, we pressed ahead with high efficiency exploration and profit-oriented development. Measures were taken to accelerate the formation of an integrated value chain of natural gas business including production, supply, storage and marketing and continuously reduce cost and expenditure on all fronts. Tangible results were achieved in maintaining oil production, increasing gas output and reducing cost. We reinforced preliminary exploration in new areas and strengthened integrated detailed evaluation in mature fields, which led to new discoveries in Tarim, Yin'e and Sichuan basins. The Company's newly added proved reserves in China reached 458.2 million barrels (64.54 million tonnes) of oil equivalent, with crude oil reserve replacement ratio at 131.7%. In crude oil development, we made a full-fledged push to build profitable production capacity, deepen the structural adjustment of mature fields, reduce natural decline rate and ensure steady production. In natural gas development, we constantly pushed forward capacity building in Hangjinqi of Neimongol, the eastern slope of west Sichuan Depression and Weirong shale gas fields. We optimised production and distribution and promoted a coordinated growth along the value chain. The Company's production of oil and gas reached 451.46 million barrels (63.50 million tonnes) of oil equivalent, with domestic crude production registering 248.93 million barrels (35.06 million tonnes) and natural gas production totaling 977.32 billion cubic feet (27.7 billion cubic meter), up by 7.1%.

BEIJING, Oct. 30, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company"; HKEX: 386; SSE: 600028; NYSE: SNP) today announced its unaudited results for the nine months ended 30 September 2018.

Financial Highlights:

In accordance with the International Financial Reporting Standards (IFRS), the Company's operating profit was RMB 85.865 billion, up 54.0% year-on-year; net profit attributable to equity shareholders of the Company was RMB 60.155 billion, up 52.7% year-on-year; basic earnings per share ("EPS") were RMB 0.497, up 52.7% year-on-year.
In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating income was RMB 2,072.970 billion, up 18.8% year-on-year; net profit attributable to equity shareholders of the Company was RMB 59.980 billion, up 56.3% from the same period last year; basic earnings per share ("EPS") were RMB 0.495, up 56.3% year-on-year.
The Company's financial position continued to improve during the first three quarters this year. In accordance with IFRS, its cash and cash equivalents at the end of the third quarter were RMB 172.284 billion.
Business Review:

In the first three quarters of 2018, global economy recorded slow recovery, while China's overall economy maintained stable performance and grew steadily with its gross domestic product (GDP) up by 6.7% year-on-year. International crude oil prices fluctuated with upward trend. The average Brent crude oil spot price for the period increased by 39.0% year-on-year. According to the statistics of NDRC, domestic apparent consumption of refined oil products increased by 5.4% compared with the same period last year. Gasoline consumption increased by 6.4% year-on-year, consumption growth for kerosene and diesel was 9.2% and 3.7% year-on-year, respectively. Domestic demand for natural gas remained robust with apparent consumption up by 18.0% compared with the same period last year. Domestic consumption of major chemicals maintained significant growth with consumption of ethylene equivalent up by 7.8% year on year, and gross margin of chemical products remained at a high level. During the reporting period, the Company captured market opportunities and made the product quality as its top priority. It attached great importance to efficiency, focused on improving the quality and efficiency of its operations, strengthened efforts in cost reduction, market expansion, structural adjustment, reform implementation and management reinforcement. Through these efforts, it delivered solid operating results.

Exploration and Production:

Exploration and Production: With the recovery of crude oil price, the Company pursued efficient exploration and effective production to increase proved reserves. Our continuing efforts in exploration paid off with new oil and gas discoveries in Sichuan Basin, Tarim Basin, Yin'e Basin and southern Songliao Basin. In development, we adopted a profit-oriented approach to speed up the crude oil new production. We also accelerated natural gas development by enhancing production-supply-storage-marketing system building to realise synergy along the entire value chain. In the first three quarters, oil and gas production of the Company was 335.34 million barrels of oil equivalent, of which domestic crude oil production increased by 0.2% while natural gas grew by 5.9%. The Exploration and Production Segment's operating loss narrowed by RMB 25.442 billion to RMB 1.081 billion compared with same period last year.

BEIJING, Aug. 26, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company")(HKEX: 386; SSE: 600028; NYSE: SNP) today announced its interim results for the six months ended 30 June 2018.

Financial Highlights:

In accordance with the International Financial Reporting Standards (IFRS), the Company's operating profit reached RMB 61.6 billion, increased by 56.6% year on year. Profit attributable to equity shareholders of the Company was RMB 42.4 billion, surged by 51.8% year on year. Basic earnings per share were RMB 0.350 (1H2017: RMB 0.231).
In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating income reached RMB 1,300 billion. Operating profit was RMB 67.9 billion, surged by 51.3% year on year. Net profit attributable to the equity shareholders of the Company was RMB 41.6 billion, up by 53.6% year on year. Basic earnings per share were RMB 0.344 (1H2017: RMB 0.224).
In accordance with IFRS, the Company's liability-to-asset ratio was 47.1%, reflecting a solid financial position. The Company's cash and cash equivalents (including time deposits) was RMB 205.2 billion, maintaining a healthy cash flow level.
The Board of Directors declared an interim dividend of RMB 0.16 per share, up by 60.0% year on year.
Business Highlights:

In the first half of 2018, global economy recorded slow recovery, while China economy maintained a stable performance and secured progress in its economic development with gross domestic product (GDP) grew by 6.8%. While the domestic demand for oil products maintained steady growth, the market witnessed strong competition because of abundant supply. According to the statistics of NDRC, domestic consumption of refined oil products increased by 5.7% compared with the first half of 2017, among which gasoline consumption increased by 4.6%, consumption growth for kerosene and diesel was 10.9% and 5.6%, respectively. Domestic demand for natural gas recorded higher growth rate. Domestic consumption of major chemicals maintained significant growth with consumption of ethylene continued to report robust growth, and gross margin for chemical products remained at a high level.

Exploration and Production: the Company promoted efficient exploration and effective production to increase proved reserves, reduced costs and expenses and achieved superior results in its upstream business. In exploration, the Company's continuing efforts in exploration paid off with major discoveries in a number of regions. In development, the Company adopted a profit oriented approach, in resumption of crude oil production. The Company also accelerated natural gas development by enhancing production-supply-storage-marketing system building to realise synergy along the entire value chain. In the first half of 2018, this segment recorded an Earnings Before Interest and Tax ("EBIT") of RMB 677 million.
Refining: the Company maintained high operational utilisation rates of refining facilities. Refined oil products mix has been optimized to address market demand changes, more high value-added products were produced. The Company actively promoted refined oil products quality upgrading and optimised crude oil sourcing to lower feedstock cost. The advantage of centralised marketing was given full play. In the first half of 2018, this segment recorded an EBIT of RMB 39.4 billion, surged by 32.3% year on year.
Marketing and Distribution: the Company took full advantages of its integrated distribution network to actively respond to competitive market conditions, and achieved good operational results. The Company intensified its efforts to explore more markets, expanded retail scale, and achieved sustained growth in total domestic sales volume. The domestic sales volume of refined oil was 88.45 million tonnes, up by 1.4% year on year. In the first half of 2018, the operating revenues and profit of non-fuel business were up 15.8% and 32.0%, respectively. This segment recorded an EBIT of RMB 18.3 billion, surged by 1.6% year on year.
Chemicals: adhering to the "basic and high-end" development concept to adjust our feedstock structure and lower cost. The Company optimised product mix by enhancing the dynamic optimisation of facilities and product chains to provide more products needed by the market. The Company strengthened the integration among production, marketing, R&D, and application, and intensified efforts on R&D, production and sales of high value-added products. In the first half of 2018, this segment recorded an EBIT of RMB 18.9 billion, up by 14.5% year on year.
Mr. Dai Houliang, Chairman of Sinopec, said, "During the first half of 2018, we carried out businesses in a practical manner and fully realised the strengths of our integrated value chain. We secured stable and higher-quality growth of the Company along with improved performance. Looking into the second half of 2018, we expect China's economy to maintain steady growth and the demand for refined oil products and petrochemicals to increase steadily with more robust demand for high-end products. Along with the adjustments of China's energy structure, demand for natural gas will maintain robust growth. The Company will continue to focus on growth pattern upgrading, insist on specialized development, market-oriented operation, optimised global presence and integrated planning to enhance efficiency. This will strengthen our core competence and extending our value chain to middle-end and high-end, aiming to deliver better operating results and give back to our country, shareholders, employees, customers and the society."

BEIJING, April 26, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company")(HKEX: 00386; SSE: 600028; NYSE: SNP) today announced its unaudited results for the three months ended 31 March 2018.

Financial Highlights：

In accordance with the International Financial Reporting Standards (IFRS), the Company's operating profit was RMB 29.218 billion, up 14.9% year-on-year. Net profit attributable to owners of the Company was RMB 19.306 billion, increased by 12.3% year-on-year. Basic earnings per share ("EPS") were RMB 0.159, increased by 12.0% year-on-year.
In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating income was RMB 621.251 billion, increased by 6.7% year-on-year. Net profit attributable to equity shareholders of the Company was RMB 18.770 billion, increased by 12.8% year-on-year. Basic earnings per share ("EPS") were RMB 0.155, increased by 13.1% year-on-year.
The Company's financial position continued to improve during the first quarter. In accordance with IFRS, cash and cash equivalents at the end of the first quarter was RMB 129.788 billion. Liabilities-to-assets ratio at the end of the first quarter was 44.3%.
Business Review：

In the first quarter of 2018, the global economy recovered gradually, and Chinese economy maintained a momentum of steady and sound growth with gross domestic product (GDP) up by 6.8%. International crude oil price fluctuated at a narrow range and increased slightly. The Company pursued supply-side structural reform as main task, focused on improving the quality and efficiency of our operations, upheld the policy of Reform, Management, Innovation and Development, and strengthened efforts on cost reduction, market expansion, structural adjustment, reform promotion, management reinforcement, which helped deliver solid operating results.

BEIJING, April 26, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company")(HKEX: 00386; SSE: 600028; NYSE: SNP) today announced its unaudited results for the three months ended 31 March 2018.

Financial Highlights：

In accordance with the International Financial Reporting Standards (IFRS), the Company's operating profit was RMB 29.218 billion, up 14.9% year-on-year. Net profit attributable to owners of the Company was RMB 19.306 billion, increased by 12.3% year-on-year. Basic earnings per share ("EPS") were RMB 0.159, increased by 12.0% year-on-year.
In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating income was RMB 621.251 billion, increased by 6.7% year-on-year. Net profit attributable to equity shareholders of the Company was RMB 18.770 billion, increased by 12.8% year-on-year. Basic earnings per share ("EPS") were RMB 0.155, increased by 13.1% year-on-year.
The Company's financial position continued to improve during the first quarter. In accordance with IFRS, cash and cash equivalents at the end of the first quarter was RMB 129.788 billion. Liabilities-to-assets ratio at the end of the first quarter was 44.3%.
Business Review：

In the first quarter of 2018, the global economy recovered gradually, and Chinese economy maintained a momentum of steady and sound growth with gross domestic product (GDP) up by 6.8%. International crude oil price fluctuated at a narrow range and increased slightly. The Company pursued supply-side structural reform as main task, focused on improving the quality and efficiency of our operations, upheld the policy of Reform, Management, Innovation and Development, and strengthened efforts on cost reduction, market expansion, structural adjustment, reform promotion, management reinforcement, which helped deliver solid operating results.

Exploration and Production:

The Company constantly strengthened measures on high-efficiency exploration activities and adopted profit-oriented approaches on development. In exploration, we made new progress in northeast Sichuan area in Sichuan Basin and in Shunbei area in Xinjiang Tarim Basin, strengthened efforts in E&P in deep, normal pressure and new strata of shale gas formations, and found new discoveries in Weirong shale gas field. In oil and gas development, we accelerated crude oil reserve evaluation, promoted capacity building in new areas of crude oil and natural gas; constantly advanced progressive exploration and reservoir appraisal of natural gas. In the first quarter, the oil and gas production of the Company was 111.33 million barrels of oil equivalent, among which domestic crude oil increased by 1.3% while natural gas increased by 0.6%, compared with the same period of last year. Exploration and Production Segment had an operating loss of RMB 0.318 billion, realising a significant reduction in loss by RMB 5.446 billion compared with the same period of last year.

BEIJING, March 27, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2017.

Financial Highlights

In accordance with IFRS, the Company's turnover and other operating revenues reached RMB 2.36 trillion in 2017, up 22.2% from the previous year. Profit attributable to equity shareholders of the Company was RMB 51.24 billion, up 9.8% year-on-year. Basic earnings per share were RMB 0.423.
In accordance with ASBE, the Company's operating profit was RMB 87.0 billion, representing a 12.4% increase as compared with 2016. Profit attributable to shareholders of the Company was RMB 51.1 billion, up 10.1% year-on-year. Basic earnings per share were RMB 0.422.
In accordance with IFRS, the Company's liability-to-asset ratio as at the end of 2017 was 46.54%, which represented an increase of 2.01 percentage points compared with the end of the previous year. Meanwhile, the Company maintained a sound financial position. Cash and cash equivalents amounted to RMB113.2 billion as at 31 December 2017, maintaining at a healthy level.
The Company focused on quality and efficiency of its development, optimised product and feedstock mix, increased high-value-added products production based on the customer demand. Refining and chemicals segments results both achieved record high. Operating profit of the refining segment totaled RMB 65.0 billion, an increase of 15.5% year-on-year. Operating profit of the chemicals segment was RMB 27.0 billion, up 30.8% year-on-year.
Taking into account the Company's profitability, cash position, shareholder return and future business development, the Board proposed a final dividend of RMB 0.40 per share, which combined with the interim dividend of RMB 0.10 per share, brought the full-year dividend to RMB 0.50 per share, up 100.8% from the previous year. Dividend payout ratio reached 118%. Total cash dividend to be paid for the full year was RMB 60.5 billion, highest since its listing.
In accordance with IFRS, the Company's total assets increased by 9.9% and shareholders' equity increased by 22.4% compared with the levels in 2014. During the three years of the sixth session of the Board, the Company's turnover and total assets have grown steadily. The Company's businesses have expanded rapidly, and overall performance has continued to improve. In addition, the Company delivered good returns to shareholders, with total dividends declared for the three-year period amounting to RMB 108.8 billion.
Business Highlights

In 2017, global economy recovered gradually, while China maintained stable and favourable economic growth with gross domestic product (GDP) up by 6.9%. As the Company made major decisions, the Board of Directors focused on steady and firm improvement, continued to focus on supply-side structural reform and stepped up efforts to enhance the Company's efficiency, profitability and corporate governance with an emphasis on delivering returns to shareholders.

Exploration and Production segment: implemented a low-cost strategy to address the challenge of low oil prices, focused on high-efficiency exploration and development, and enlarged proved reserves to lay a stronger foundation for sustainable development. The Company also developed its natural gas business as a new driver for profit growth. The Company built up the production capacity of the Fuling shale gas field to 10 billion cubic meters per year.
Refining segment: optimised product mix and the production volume of high-value-added products have been further improved. The Company actively promoted refined oil products quality upgrading and optimised its production plans along with market changes. The advantages of centralised marketing took full play and the Company developed this business into its profit growth drivers
Marketing and Distribution segment: innovated operational models, optimized layout of service stations and brought he Company's advantages in integrated business and distribution network into full play, achieving sustained growth in both total sales volume and retail scale. In addition, the Company proactively promoted and cultivated vehicle natural gas business. Non-fuel business maintained its rapid growth.
Chemicals segment: adopted a customer-focused approach and enhanced the adjustments in our product and feedstock mix. The Company intensified its efforts to enhance research and development, production, marketing and sales of new high-value-added products and implemented precision marketing. Both the sales volume and profitability of the chemicals segment reached record highs.
Mr. Dai Houliang, Vice Chairman & President of Sinopec Corp. said, "In 2017, The Company actively addressed market changes through a focus on the improvement of assets quality and profitability, as well as operation upgrades. We pressed ahead with measures for specialised business development, market-oriented operation and overall coordination. With a focused supply-side structural reform, we coordinated all aspects of our work and delivered solid operating results. In 2018, the global economy will continue to recover. While China's economic development model will shift from high-speed growth to high- quality development, domestic demand for oil and chemical products will remain robust. In view of the new requirements in the new era, the Company will adhere to an underlying principle of progressing at a steady pace and under a new development model that makes quality and efficiency our top priorities. We will continue to implement our set strategies and enhance our corporate governance with China's characteristics. We will also strive diligently to improve our production and operational standards, reinforce our reform, innovation and management to enable sustainable development."

BEIJING, March 25, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2017.

Financial Highlights

In accordance with IFRS, the Company's turnover and other operating revenues reached RMB 2.36 trillion in 2017, up 22.2% from the previous year. Profit attributable to equity shareholders of the Company was RMB 51.24 billion, up 9.8% year-on-year. Basic earnings per share were RMB 0.423.
In accordance with ASBE, the Company's operating profit was RMB 87.0 billion, representing a 12.4% increase as compared with 2016. Profit attributable to shareholders of the Company was RMB 51.1 billion, up 10.1% year-on-year. Basic earnings per share were RMB 0.422.
In accordance with IFRS, the Company's liability-to-asset ratio as at the end of 2017 was 46.54%, which represented an increase of 2.01 percentage points compared with the end of the previous year. Meanwhile, the Company maintained a sound financial position. Cash and cash equivalents amounted to RMB113.2 billion as at 31 December 2017, maintaining at a healthy level.
The Company focused on quality and efficiency of its development, optimised product and feedstock mix, increased high-value-added products production based on the customer demand. Refining and chemicals segments results both achieved record high. Operating profit of the refining segment totaled RMB 65.0 billion, an increase of 15.5% year-on-year. Operating profit of the chemicals segment was RMB 27.0 billion, up 30.8% year-on-year.
Taking into account the Company's profitability, cash position, shareholder return and future business development, the Board proposed a final dividend of RMB 0.40 per share, which combined with the interim dividend of RMB 0.10 per share, brought the full-year dividend to RMB 0.50 per share, up 100.8% from the previous year. Dividend payout ratio reached 118%. Total cash dividend to be paid for the full year was RMB 60.5 billion, highest since its listing.
In accordance with IFRS, the Company's total assets increased by 9.9% and shareholders' equity increased by 22.4% compared with the levels in 2014. During the three years of the sixth session of the Board, the Company's turnover and total assets have grown steadily. The Company's businesses have expanded rapidly, and overall performance has continued to improve. In addition, the Company delivered good returns to shareholders, with total dividends declared for the three-year period amounting to RMB 108.8 billion.
Business Highlights

In 2017, global economy recovered gradually, while China maintained stable and favourable economic growth with gross domestic product (GDP) up by 6.9%. As the Company made major decisions, the Board of Directors focused on steady and firm improvement, continued to focus on supply-side structural reform and stepped up efforts to enhance the Company's efficiency, profitability and corporate governance with an emphasis on delivering returns to shareholders.

Exploration and Production segment: implemented a low-cost strategy to address the challenge of low oil prices, focused on high-efficiency exploration and development, and enlarged proved reserves to lay a stronger foundation for sustainable development. The Company also developed its natural gas business as a new driver for profit growth. The Company built up the production capacity of the Fuling shale gas field to 10 billion cubic meters per year.
Refining segment: optimised product mix and the production volume of high-value-added products have been further improved. The Company actively promoted refined oil products quality upgrading and optimised its production plans along with market changes. The advantages of centralised marketing took full play and the Company developed this business into its profit growth drivers
Marketing and Distribution segment: innovated operational models, optimized layout of service stations and brought he Company's advantages in integrated business and distribution network into full play, achieving sustained growth in both total sales volume and retail scale. In addition, the Company proactively promoted and cultivated vehicle natural gas business. Non-fuel business maintained its rapid growth.
Chemicals segment: adopted a customer-focused approach and enhanced the adjustments in our product and feedstock mix. The Company intensified its efforts to enhance research and development, production, marketing and sales of new high-value-added products and implemented precision marketing. Both the sales volume and profitability of the chemicals segment reached record highs.
Mr. Dai Houliang, Vice Chairman & President of Sinopec Corp. said, "In 2017, The Company actively addressed market changes through a focus on the improvement of assets quality and profitability, as well as operation upgrades. We pressed ahead with measures for specialised business development, market-oriented operation and overall coordination. With a focused supply-side structural reform, we coordinated all aspects of our work and delivered solid operating results. In 2018, the global economy will continue to recover. While China's economic development model will shift from high-speed growth to high- quality development, domestic demand for oil and chemical products will remain robust. In view of the new requirements in the new era, the Company will adhere to an underlying principle of progressing at a steady pace and under a new development model that makes quality and efficiency our top priorities. We will continue to implement our set strategies and enhance our corporate governance with China's characteristics. We will also strive diligently to improve our production and operational standards, reinforce our reform, innovation and management to enable sustainable development."

Business Review

Exploration and Production

In 2017, faced with low oil prices, we constantly strengthened measures to increase proved reserves and rein in development costs, which helped achieving better results. We gave priority to high-efficiency exploration activities and made new discoveries in the Xinjiang Tahe Basin and the Sichuan Basin. The Company's newly added proved reserve reached 462.73 million barrels of oil equivalent, with crude oil reserve replacement ratio reaching 116.0%. In crude oil development, we constantly adopted a profit-oriented approach, deepened structural adjustment, focused on cost control, reduced natural decline rate and ensured steady production. In natural gas development, we actively pushed forward capacity building in Hangjinqi of Nei Mongol and Dongpo of west Sichuan, and completed 10 bcm(billion cubic meter) per year shale gas capacity building in Fuling. The Company's production of oil and gas was 448.79 million barrels of oil equivalent, with domestic crude production down by 3.2% from the previous year and natural gas production up by 19.1%.

In 2017, the operating revenues of this segment were RMB 157.5 billion, representing an increase of 35.9% over 2016. This was mainly attributed to the rise of realised price of crude oil and natural gas as well as expansion of LNG business. The operating loss of the exploration and production segment were RMB 45.9 billion, representing an expanded loss by RMB 9.3 billion as compared with 2016. By deducting the non-operating income from capital injection of Sichuan-to-East China Pipeline Co. in 2016, the Company realized a significant reduction in loss by RMB 11.3 billion in 2017.

In 2017, the oil and gas lifting cost was RMB 788.3 per tonne, representing a year on year increase of 0.3%.

BEIJING, Aug. 27, 2017 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company")(HKEX: 386; SSE: 600028; NYSE: SNP) today announced its interim results for the six months ended 30 June 2017.

Financial Highlights:

In accordance with the International Financial Reporting Standards (IFRS), the Company's operating profit reached RMB 39.3 billion. Profit attributable to equity shareholders of the Company was RMB 27.9 billion, surged by 40.1% year on year. Basic earnings per share were RMB 0.231 (1H2016: RMB 0.165).
In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating income reached RMB 1,166 billion. Operating profit was RMB 45.0 billion, surged by 31.3% year on year. Net profit attributable to the equity shareholders of the Company was RMB 27.1 billion, up by 40.7% year on year. Basic earnings per share were RMB 0.224 (1H2016: RMB 0.159).
In accordance with IFRS, the Company's liability-to-asset ratio was 43.22%, representing a decrease of 1.31 percentage points compared with the end of last year, reflecting a solid financial position. The Company's cash and cash equivalents (including time deposits) increased by 12.9% as compared to the beginning of this year, maintaining a healthy cash flow level.
The Board of Directors declared an interim dividend of RMB0.10 per share, up by 26.6% year on year.
Business Highlights:

In the first half of 2017, global economy recorded moderate recovery and Chinese economy maintained steady growth with gross domestic product (GDP) up by 6.9% year on year. With abundant supply, domestic refined oil products market witnessed strong competition. According to the statistics, domestic consumption of refined oil products increased by 5.5% compared with the first half of 2016, among which gasoline and kerosene consumption maintained strong growth momentum, and diesel consumption reversed its downward trend and realised growth year on year. Domestic demand for natural gas accelerated, up by 15.2% compared with the first half of 2016. Domestic consumption of major chemicals grow significantly with consumption of ethylene equivalent up by 10.5% year on year, and gross margin for chemical products remained strong.

Exploration and Production: the Company focused on reserve increase and development returns through our operation and production with superior results achieved. In exploration, our major direction maintained to focus on identification of high quality, large scale and low cost reserves. Its continuing efforts in exploration paid off with major discoveries in a number of regions. The Company attached great importance to the development of natural gas and actively promoted Phase II of Fuling Shale Gas development project. In the first half of 2017, loss from the upstream segment was significantly reduced and realized positive free cash flow.
Refining: the Company maintained high operational utilisation rates of refining facilities. Refined oil products mix has been optimized to address market demand changes, more high value-added products were produced. The Company actively promoted refined oil products quality upgrading and optimised crude oil sourcing to lower feedstock cost. The advantages of centralised marketing took full play. In the first half of 2017, this segment recorded an Earnings Before Interest and Tax ("EBIT") of RMB 29.8 billion. Excluding the impact from the floor-price policy from the same period of last year, EBIT surged by 26.7% year on year.
Marketing and Distribution: the Company took full advantages of its integrated business and distribution network to actively respond to over-supplied and competitive market conditions, and achieved good operational results. The Company flexibly adjusted marketing strategies and promoted branding gasoline. By means of "Internet +" and other marketing measures, the Company promoted rapid growth of new business, put more efforts on cultivation of major products and self-owned brand products. Transaction value of emerging business was RMB 27.8 billion, up by 50% from the first half of 2016. In the first half of 2017, this segment recorded an EBIT of RMB 18.0 billion, up by 8.0% year on year.
Chemicals: based on contribution of the marginal benefit and gross margin of chemical facilities, the Company optimised operations based on marginal contribution and gross margin of chemical facilities to promote profitability. The Company deepened adjustments of feedstock mix to reduce chemical feedstock cost, and pressed ahead optimisation of product slate, producing more market-oriented and high value-added products, strengthened the integration among production, sales, R&D and application, and intensified efforts on R&D, production and promotion of new products. In the first half of 2017, this segment recorded an EBIT of RMB 16.5 billion, surged by 34.9% year on year.
Mr. Wang Yupu, Chairman of Sinopec, said, "During the first half of 2017, we fully implemented value-oriented growth, innovation driven development, integrated resource allocation, openness to cooperation, and green, low-carbon development strategies and achieved solid operating results. Looking into the second half of 2017, we expect more reform measures to be announced by the Chinese government to revitalise real economy, the "Belt and Road" Initiative, synergetic development of Beijing-Tianjin-Hebei and the Yangtze River Economic Belt development will be further implemented. The China's economy will maintain steady growth and drives the demand of refined oil products and petrochemical products as well as creates new growth opportunities for petroleum and petrochemical industry. The Company will continue to focus on supply-side structural reform, progressing with growth stabilisation, market expansion, cost reduction, structural adjustments, reform, and consolidating the basis as to deliver superior business results, providing larger value for our country, our shareholders, our staff, and our society."

Capital Expenditures

Focusing on quality and returns of investment, the Company continuously optimised its investment projects. In the first half of 2017, total capital expenditures were RMB 15.953 billion. Capital expenditures for the exploration and production segment were RMB 6.870 billion, mainly for oil and gas capacity building, Tianjin LNG Terminal Project, Wen 23 Gas Storage Project, boosting project of Sichuan-to-East China Pipeline as well as overseas projects. Capital expenditures for the refining segment were RMB 3.672 billion, mainly for the Zhongke integrated refining and chemical project, product mix adjustments of ZRCC and Maoming, and GB VI gasoline and diesel quality upgrading projects. Capital expenditures for the marketing and distribution segment were RMB 2.500 billion, mainly for constructing refined oil products depots, pipelines and service stations. Capital expenditures for the chemicals segment were RMB 2.594 billion, mainly for integrated refining and chemical projects of Zhongke and Gulei and the high-efficiency and environmental friendly aromatics project in Hainan refinery. Capital expenditures for corporate and others were RMB 317 million, mainly for R&D facilities and information technology application projects.

Business Prospects

Looking into the second half of 2017, we expect more reform measures to be announced by the Chinese government to revitalise real economy, the "Belt and Road" Initiative, synergetic development of Beijing-Tianjin-Hebei and the Yangtze River Economic Belt development will be further implemented. The China's economy will maintain steady growth and drives the demand of refined oil products and petrochemical products as well as creates new growth opportunities for petroleum and petrochemical industry. Along with the adjustments of China's energy structure, demand of natural gas as cleaner energy resources will maintain robust growth rate. For the second half of 2017, the international crude oil prices are expected to fluctuate at a low level.

In the second half of 2017, in accordance with our objective of progressing at a steady pace to continually focus on growth stabilisation, market expansion, cost reduction, structural adjustments, reform, and consolidating the basis for the Company's further development. Our focuses are as following aspects:

For Exploration and Production, we will continue to advance high-efficiency exploration activities, enlarge economical recoverable reserve and raise reserve production ratio. In crude oil development, we will accelerate profitable development of new oilfields and profitable re-opening of suspended wells, optimise development structure of oilfields, control natural decline rate and solidify basis for stable production. In natural gas development, we will advance key projects for capacity construction, strengthen the efficiency of developed gas fields, optimise natural gas production and marketing plans and advance facilities construction. In the second half of 2017, we plan to produce 148 million barrels of crude oil, of which domestic production will account for 125 million barrels and overseas production will account for 23 million barrels. We plan to produce 427.5 billion cubic feet of natural gas during the period.

For Refining, we will center on the structural reform on the supply side and accelerate the construction of four regional refining centers. Based on market demand and industrial trend, we will optimise product mix and produce more gasoline, jet fuel, light oil and other high value-added products. We will complete GB V standard of regular diesel upgrading project, and accelerate upgrading progress of GB VI standard gasoline. We will fine-tune crude oil procurement and resource allocation to reduce procurement cost, fully optimise operations and ensure safe and stable production, take full play of integrated advantages of production and marketing to further optimise processing scheduling. We plan to process 118 million tonnes of crude in the second half of the year.

For Marketing and Distribution, we will coordinate scale and efficiency of the business, short-term and long-term goals, set up flexible operation strategies, optimize resources allocation, sparing no effort to expand markets and our business scale. We will further improve retail network layout, solidify and promote the advantages of e-commerce development. We will step up construction of natural gas stations to expand vehicle natural gas market. We will explore a new type of business model integrating "Internet-Marketing-Services" with IT technology and boost the growth of emerging business (non-fuel). In the second half, we plan to sell 87.78 million tonnes of refined oil products in the domestic market in the second half of 2017.

For Chemicals, we will continue to adjust our feedstock structure to lower costs, fine-tune our product slate, improve the coordinating mechanism between production, marketing, research and application, advance new product development, promotion and application, deliver more specialty and high-end products and speed up the upgrading of synthetic resin, synthetic rubber and synthetic fiber. We will deepen the structural adjustments of facilities and optimise production and operation based on contribution of the marginal contribution and gross margin so as to enhance efficiency and profitability. Meanwhile, we will better our marketing network, improve customer services and provide integrated solutions and value-added services. We plan to produce 6.05 million tonnes of ethylene in the second half of 2017.

In the second half of the year, the Company will continue to focus on supply-side structural reform, upgrade growth pattern to enhance efficiency and profitability, and fully implement value-oriented growth, innovation driven development, integrated resource allocation, openness to cooperation, and green, low-carbon development strategies so as to deliver superior business results.

First Quarter 2017 Financial Results

Basic & diluted earnings per share (RMB) was 0.137 vs last years 0.051 up 168.6%.

The Company gave priority to high-efficiency exploration with efforts on enhancing progressive exploration and reservoir appraisal and made new oil discoveries in Shunbei area in Xinjiang, as well as new natural gas findings in Sichuan basin. In development, we adopted a profit-oriented approach, adjusting development activities and enhancing cost discipline. Our production of natural gas increased and Phase Two Fuling shale gas development project was progressed according to the plan. In the first quarter, the oil and gas production of the Company was 111.93 million barrels of oil equivalent, declined by 2.4%, out of which crude oil output down by 9.2% while natural gas up by 12.8%, compared with the same period last year. Exploration and Production Segment had an operating loss of RMB 5.764 billion, less than by RMB 6.762 billion compared with the same period last year.

BEIJING, Oct. 27, 2016 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE and LSE: SNP) today announced its financial results for the first three quarters ended 30 September 2016.

Financial Highlights:

 In accordance with the International Financial Reporting Standards ("IFRS"), the Company's operating profit reached RMB 51.430 billion, up 4.2% year-on-year. Net profit attributable to owners of the Company was RMB 30.107 billion, representing an increase of 11.2% year-on-year. Basic earnings per share were RMB 0.249, up 11.2% year-on-year.
In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), the Company's revenue amounted to RMB 1,363.945 billion, down 11.3% year-on-year. Net profit attributable to equity shareholders of the Company was RMB 29.166 billion, up 12.6% year-on-year. Basic earnings per share were RMB 0.241, up 12.6% year-on-year.
The Company's cash flow and financial position continued to improve during the first three quarters. In accordance with IFRS, the Company's net cash flow from operating activities was RMB 131.700 billion, up 13.3% year-on-year. Cash and cash equivalents at the end of the period were RMB 81.149 billion. Liabilities-to-assets ratio at the end of the third quarter was 42.53%, down 3.01 percentage points from the year end of 2015.
Business Review:

For first three quarters in 2016, the Company focused on growth quality and profitability and further enhanced structure adjustment and management. It optimised market-oriented operation, fully leveraged advantages across the integrated value chain, coordinated all aspects of work and overcame the impact of natural disasters, obtained fine operating results.

BEIJING, Aug. 28, 2016 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its interim results for the six months ended 30 June 2016.

Financial Highlights：

In accordance with the International Financial Reporting Standards (IFRS), the Company's operating profit was RMB 35.1 billion, representing a decline of 13.3% from the same period last year. Profit attributable to equity shareholders of the Company was RMB 19.9 billion. Basic earnings per share were RMB 0.165.
In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating profit was RMB 34.3 billion, representing a decrease of 12.9% over the same period of 2015. Net profit attributable to the equity shareholders of the Company was RMB 19.3 billion. Basic earnings per share were RMB 0.159
In accordance with IFRS, the Company's liability-to-asset ratio was 43.46%, representing a decrease of 1.98 percentage points compared with the end of last year, the lowest level since its listing. The Company's cash and cash equivalents increased by RMB 4.1 billion as compared to the beginning of this year. The Company's cash flow and financial position further improved.
The Board of Directors declared an interim dividend of RMB0.079 per share, which was in line with payout ceiling set out in the Articles of Association.
Business Highlights：

The first half of 2016 saw weak global economic recovery. China's GDP grew by 6.7% year on year. The oil products pricing mechanism was further improved and the floor on refined oil price was established. Domestic apparent consumption of refined oil products was up 4.4% year on year. Gasoline and kerosene consumption remained growth momentum, while diesel consumption declined further, showing continuous divergence in the consumption mix of oil products. Domestic consumption of major chemicals continued to grow. Ethylene equivalent consumption increased by 1.7% when compared with the first half of 2015. Chemical prices dropped amid the decline in feedstock prices, but chemical products margin maintained at high levels.

Exploration and Production: the Company effectively optimised exploration and development activities. Its continuing efforts in exploration paid off with major discoveries in a number of regions. It attached great importance to the development of natural gas and actively expanded shale gas business. As for production operation, the Company strengthened cost discipline, substantially reduced low-efficiency and high-cost oil production, and increased natural gas production. This segment realized an operating loss of RMB 21.9 billion in the first half of 2016 but continued to generate cash inflow from operating activities.
Refining: the Company adjusted its product mix in response to sharp increase of throughput from other refineries and abundant market supply. The Company further optimised its oil product mix by increasing the production of gasoline, kerosene and light chemical feedstock with a further decline in diesel-to-gasoline ratio. In the first half of 2016, this segment realised an operating profit of RMB 32.6 billion, representing an increase of 113% year on year. The refining margin was RMB 514.4 per tonne, representing an increase of 47.9% year on year.
Marketing and Distribution: the Company coordinated and optimised internal and external resources and took full advantage of the synergies between its fuel and non-fuel businesses, achieving growth in their total business volume and retail transactions despite ample fuel supply and strong competition in the market. In addition, the Company adjusted marketing efforts by increasing the retail operation of premium products with high-octane numbers. Non-fuel business sustained rapid development with transaction amount significantly increased by 43% year on year. This segment's operating profit was RMB 15.8 billion, representing an increase of RMB 600 million year on year.
Chemicals: the Company continued to adjust the structure of its feedstock, products and facilities. The Company further lowered the feedstock cost for ethylene, strengthened the integration among production, sales, product R&D and customer needs. The proportion of performance polymer and differentiated products further increased. The Company maintained low inventory operation and implemented differentiated marketing strategy. Total transaction of chemical products increased by 8.3% year on year. This segment's operating profit in the first half of 2016 stabilized at RMB 9.7 billion.
Mr. Wang Yupu, Chairman of Sinopec, said, "In the first half of 2016, the Company  spared no effort to expand its markets, optimise its operations, control costs, adjust asset structure and manage risks. Focusing on the growth of quality and profitability, the Company emphasised on structural adjustment, deepening reform, innovation-driven strategy and strengthening coordination of all aspects of work. Looking ahead into the second half of 2016, China's economic growth is expected to remain steady, which will drive the growth of domestic demand for refined oil products and petrochemical products. We will remain focused on implementing the development plan for 2016 through 2020—transforming the pattern of growth, adjusting asset structure, upgrading asset quality and promoting sustainable growth to achieve superior business results."

First Quarter 2016 Financial Results

• In accordance with the International Financial Reporting Standards (IFRS), the Company's operating profit was RMB 13.06 billion, up by 153.4% year-on-year.
•  Profit for the period was RMB 9.56 billion, increased by 267.7% year-on-year. Net profit attributable to owners of the Company was RMB 6.66 billion, increased by 206.8% year-on-year.
• Basic earnings per share (EPS) were RMB 0.055.

BEIJING, March 29, 2016 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2015.

Financial Highlights:

• In accordance with the International Financial Reporting Standards (IFRS), the Company's net profit was RMB 43.7 billion, decreased by 8.9% year-on-year. In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's net profit was RMB 43.3 billion, decreased by 11.4% year-on-year. The net profits reflect integrated advantages amid sluggish oil price. The operating profits for the refinery segment and the chemical segment significantly increased to RMB 21.0 billion and RMB 19.7 billion, respectively. Both segments became the main drivers of the Company's profit and offset the less favorable upstream results.
• In accordance with IFRS, the Company's total turnover and other operating revenue was RMB 2,018.9 billion, down by 28.6% year-on-year. The Company's operating profit was RMB 57.0 billion, representing a decline of 22.4% from last year. Profit attributable to shareholders of the company was RMB 32.4 billion, 30.2% lower than last year. Basic earnings per share was RMB 0.268.
• In accordance with ASBE, the Company's net profit was RMB 43.3billion, down by 11.4% year-on-year. The Company's operating profit was RMB 52.1 billion, a 20.4% decrease as compared with 2014. Profit attributable to shareholders of the company was RMB 32.2 billion, 32.1% lower than last year. Basic earnings per share was RMB 0.266.
• In accordance with IFRS, the Company's liability-to-asset ratio was 45.66%, representing a decrease of 9.89 percentage points compared with the end of last year, lowest level since its debut on the capital market and liabilities structure further optimized. As of 31 December 2015, the Company's cash and cash equivalents were RMB67.8 billion. The Company's cash flow was significant improved.
• The Board of Directors proposed a final dividend of RMB 0.06 per share. Combined with the interim dividend of RMB 0.09 per share, the total annual cash dividend for 2015 is RMB 0.15 per share. Dividend payout ratio reached 56%. Total cash dividend paid for the full year was RMB 18.2 billion.

Business Highlights:

In 2015, the global economic recovery remained weak, and Chinese economy maintained steady growth with GDP up by 6.9%. International oil prices were under downward pressure while fluctuating to new lows. Growth of oil products demand slowed, yet demand for chemicals was stable. Meanwhile, domestic environmental requirements became more stringent, the Company intensified its evaluation of the macro economy and market trends so that it actively respond to these changes. With a focus on growth quality and efficiency, the Company emphasized on reform and innovation, stringent management and tight coordination of all aspects of our work.

• Exploration and production segment: optimised exploration and development projects. The Company implemented dynamic investment decision-making mechanism as oil prices fluctuated and reduced high cost oil production. The proved reserves of natural gas increased mainly driven by Fuling shale gas reserves.

• Refining segment: further upgraded oil products quality as scheduled. The mix of high-value-added products was increased, indicating the advantages of economic of scale, specialisation and integrated operations. At the same time, stringent safety policy was implemented to ensure safe and stable operation and improve all economical and technical standards.

• Marketing and Distribution: adjusted our marketing strategies; optimised marketing networks; positively transformed from a fuel supplier to a comprehensive service provider, and the marketing segment unleashed great potential in complementary fuel and non-fuel businesses, which sustained the growth of total retail volume and per-station pumped volume.

• Chemicals: enhanced the operations of manufacturing facilities; cut feedstock cost; deepened the links among research and development, production, marketing and sales of new products, and maximized production of high-value-added products tailored to market demands. .

Mr. Wang Yupu, Chairman of Sinopec said, " During the year, despite the extremely challenging environment for production and operation, the Company managed to make progress on many fronts as we fully leverage our advantages in business integration, take effective measures to broaden source of income while cutting cost, and continue to drive structural adjustment and scientific innovation. The Company practiced its belief that corporate social responsibility creates value and has been actively involved in the philanthropic projects, leading Chinese enterprises to be practitioners of green and low-carbon development. In the first year of China's national 'Five-Year Plan', the Company will be implementing five growth strategies focusing on value-oriented, innovation-driven, integrated resource management, open & cooperative, as well as green & low-carbon development. The Company will focus on improving quality and efficiency, speeding up the economic transformation and structure adjustment, collectively driving the quality, efficient and sustainable development of the Company. "

BEIJING, October 30, 2015 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company")(HKEX: 386; SSE: 600028; NYSE: SNP) today announced its unaudited results for the nine months period ended 30September 2015.

Results Review:

In the first three quarters of 2015, global economic recovery remained slow. China's GDP grew by 6.9%. International crude oil prices fluctuated at low level and continued to drop in the third quarter. Domestic refined oil product prices were adjusted timely in line with international crude oil prices with 5 consecutive cuts followed by one increase. Domestic apparent consumption of refined oil products grew by 2.6% over the same period of last year, driven by substantial increase of gasoline and kerosene consumption while diesel consumption dropped. Domestic demand for chemicals maintained a steady growth with ethylene equivalent consumption up by 3.2% compared with the same period of last year.

The Company, focusing on growth quality and profitability, through intensified analysis and forecasting of macro-economy and market trends, actively responded to the fluctuation of international crude oil price, fully leverage the advantages across the integrated value chain, kept the cost and expenses under control, and realised stable operations.

Exploration and Production

The Company took effective measures to cope with low oil prices, including optimising the exploration and production plans, setting up flexible investment decision making mechanism and cutting high-cost crude oil production. In exploration, we attained new discoveries in marine facies gas fields in western Sichuan. In development, Fuling shale gas and Yuanba gas projects progressed steadily. In the first three quarters, oil and gas production of the Company reached 350.82 million barrels of oil equivalent, down by 1.8%, out of which crude oil output dropped 2.4%, over the same period last year. Impacted by the sustained low crude oil price, Exploration and Production Segment had an operating loss of RMB 3.444 billion.

Refining

The Company optimised the crude oil allocation and processing plans, adjusted product slate and utilisation rate, and increased the yield of high value-added products, such as high-spec gasoline. We brought our scale advantages into full play to control the unit cost. We actively promoted the quality upgrading of refined oil products and provided high standard fuels to the market. We took our specialised business advantages to improve our dedicated marketing network. In the first three quarters, refinery throughput and refined oil products production increased by 1.4% and 2.9% respectively, among which gasoline up by 7.1%, jet fuel up by 17.2% and diesel down by 3.9% over the same period last year. Benefited by product yield optimisation and the refined oil product pricing mechanism improvement, Refining Segment had an operating profit of RMB 14.905 billion, up by 34.3% over the same period last year.

Marketing and Distribution

In light of the changes in supply and demand, the Company optimised marketing structure to increase retail volume and single station throughput. We accelerated the development of the non-fuel business and its interaction with fuel business, promoted the industrial cooperation and achieved volume and profit growth. We accelerated our transformation from an oil products supplier to a comprehensive service provider by using our network and brand advantages, upgrading the value creation capabilities of marketing network. In the first three quarters, total sales volume of refined oil products was 141 million tonnes, up by 1.9% over the same period last year. Total domestic sales volume of refined oil products was 127 million tonnes, up by 0.8%, of which retail volume reached 88.19 million tonnes, up by 1.9% over the same period last year. Transaction of non-fuel business reached RMB 19.2 billion, up by 66.7% compared with the same period last year. The operating profit of Marketing and Distribution Segment was RMB 21.5 billion, down by 18.7% over the same period last year.

Chemicals

The Company further optimised feedstock and product mix to achieve more cost-cutting and better efficiency. We put our efforts in R&D, production and marketing of new products, strengthened the coordination between R&D, production and marketing and maintained production volume growth of high value-added products, achieving better economic performance. The synthetic resin for special compound rate reached 59%, up by 1% and the synthetic fiber differentiation rate reached 81.8%, up by 5.7% over the same period last year. In the first three quarters, ethylene production reached 8.273 million tonnes, up by 5.3% and chemical sales volume was 45.38 million tonnes, up by 2.1% over the same period last year. Benefited by the structural adjustment, declining feedstock price and the competitive naphtha-based chemical products, the operating profit of Chemicals Segment was RMB 15.008 billion, up by RMB 18.524 billion over the same period last year.

BEIJING, Aug. 26, 2015 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company")(HKEX: 386) (SSE: 600028) (NYSE: SNP) today announced its interim results for the six months ended 30 June 2015.

Financial Highlights:

• In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating profit of the Company was RMB 39.3 billion, representing a decrease of 12.4% over the same period of 2014. Net profit attributable to the equity shareholders of the Company was RMB 24.4 billion, a 22.3% decrease as compared with the first half of 2014. Basic earnings per share was RMB0.202
• In accordance with the International Financial Reporting Standards (IFRS), the Company's total turnover and other operating revenue was RMB 1,040.4 billion, 23.3% lower than the same period of last year. The Company's operating profit was RMB 40.5 billion, representing a decline of 22.4% from the same period last year. Profit attributable to shareholders of the company was RMB 25.4 billion, 22.0% lower than the same period of last year. Basic earnings per share was RMB0.211.
• In accordance with IFRS, the Company's liability-to-asset ratio of Sinopec Corp. was 46.48%, representing a decrease of 9.04 percentage points compared with the end of last year, lowest level since its debut on the capital market. As of 30 June 2015, the Company's cash and cash equivalents were RMB72.5 billion, an increase of RMB 63.5 billion as of 31 December 2014. The Company's cash flow and financial position was further improved.
• The Board of Directors proposed an interim dividend of RMB0.09 per share, maintaining the same level year-on-year. Total dividend to be paid will amount to RMB10.9 billion, up by 3.7% year-on-year.

Business Highlights:

In the first half of 2015, the global economic recovery remained slow. China's GDP grew by 7.0%. The domestic demand of crude oil maintained a steady growth, increasing 4.8% year on year, and natural gas demand growth slowed down, up 2.1% year on year. Refined oil products demand continue to diversify following last year's trend with a slower growth rate. Gasoline and kerosene consumption increased substantially while diesel dropped slightly. The total consumption of refined oil products grew by 3% compared with the same period of last year. Quality upgrading of oil products was accelerated. Domestic oil products prices were adjusted timely in line with the international oil price changes. Domestic demand for chemicals maintained a steady growth with the ethylene equivalent consumption up by 2.5% compared with the same period of last year.

Amid a challenging market environment, the Company achieved solid operating results through optimizing its operation, focusing on cost control, expanding new markets and fully utilizing its integrated advantages. The Company's refining and chemicals businesses achieved robust operating results and became the profit drivers during the period, leveraging on its Integrated Advantages

• Exploration and Production: the Company took effective measures in low oil price environment in the first half of 2015, including optimising the exploration and production plans, setting up flexible investment decision making mechanism and cutting high-cost crude oil production. The operating loss of this segment was RMB 1.8 billion in the first half of 2015, representing a decrease of RMB 30.1 billion in operating profit compared with the same period of 2014.
• Refining: the Company, while focusing on profitability, optimised the crude oil allocation and processing plans, adjusted the product slate and utilisation rate, and increased the yield of high value-added products, such as high-spec gasoline. We brought our scale advantages into full play to control the unit cost. We actively promoted the quality upgrading of refined oil products and provide high standard fuels to the market. We also took advantages of specialised operation by improving our dedicated marketing network. The segment realized an operating profit of RMB 15.3 billion in the first half of 2015, representing an increase of 57% over the same period of 2014. The refining margin was USD7.72 per barrel, representing an increase of 15.8% year-on-year.
• Marketing and Distribution Segment: the Company optimised marketing structure to increase retail volume and single station throughput. We accelerated the transformation from an oil products supplier to a comprehensive service provider by complimenting the rapid development of non-fuel business with that of fuel business and achieving volume and profit growth. In the first half of 2015, the segment's operating profit was RMB15.2 billion, representing a decrease of 19.2% over the same period of 2014. Revenue from our non-fuel business reached RMB 13.33 billion, an increase of 85.4% from the same period in 2014.
• Chemicals: the Company further optimised feedstock and product mix to achieve better cost efficiency. We put our efforts in R&D, production and marketing of new products, and maintained production volume growth in high value-added products. The segment's operating profit during the six-month period ended 30 June 2015 was RMB 10.1 billion, representing an increase of RMB 14.1 billion compared with the same period of 2014

Mr. Wang Yupu, Chairman of Sinopec said, "Sinopec continuously improved its corporate governance, expanded its business and enhanced its competitiveness by riding on the rapid growth of Chinese market, leveraging its integrated advantages, and deepening reform and continuous commitment to excellence. Especially during the first half of 2015, despite the slowdown of domestic economy and low oil prices, the Company managed to navigate through the challenging and complicated market environment and achieved solid operating results, through tapping new resources for growth and reducing expenditure, optimizing production and operation, reducing costs and expenses as well as expanding new markets. Looking forward, the Company is facing challenges from the changing global political and economic landscape, the shifting of growth engine in Chinese economy, and volatilities in the industry and the market. But at the same time, the Company also has unprecedented growth opportunities. The Company is drafting its 13th Five-Year-Plan. We'll proactively adapt to the New Normals in China's economic growth and the megatrend of the world's economy and the business cycle. We will prioritise on reforms, consolidation of resources, integrated operations, innovation and value creation. We will further develop our growth strategies to seize the opportunities arising from the nation's strategic initiatives which include the "One Belt, One Road" initiative, the Coordinated Development of Beijing, Tianjin and Hebei, the development of Yangtze River Economic Zone and the Made in China 2025 plan."

Business Review

Exploration and Production

The Company took effective measures in low oil price environment in the first half of 2015, including optimising the exploration and production plans, setting up flexible investment decision making mechanism and cutting high-cost crude oil production. In exploration, we attained new discoveries and commercial flows in marine faces gas fields in the west of Sichuan. In development, the Fuling shale gas project progressed steadily. Oil and gas production in the first half was 232.95 million barrels of oil equivalent, down by 1.7% compared with same period of last year. Domestic and overseas crude oil production amounted to 147.47 million barrels and 26.60 million barrels respectively while natural gas production reached 353.26 billion cubic feet.

In the first half of 2015, operating revenue of the segment was RMB70.4 billion, representing a decrease of 38.2% over the first half of 2014. The operating loss of this segment was RMB 1.8 billion in the first half of 2015, representing a decrease of RMB 30.1 billion in operating profit compared with the same period of 2014 due to the sharp decline of the international crude oil prices.

Refining

The Company, while focusing on profitability, optimised the crude oil allocation and processing plans, adjusted the product slate and utilisation rate, and increased the yield of high value-added products, such as high-spec gasoline. We brought our scale advantages into full play to control the unit cost. We actively promoted the quality upgrading of refined oil products and provide high standard fuels to the market. We took advantages of specialised by improving our dedicated marketing network, we optimised the sales of other refining products such as lubricants, LPG, asphalt, etc. In the first half of 2015, we processed 119 million tonnes of crude oil, up by 2.7% compared with the first half of 2014. Refined oil products output rose by 4.4% with jet fuel and high-spec gasoline up by 18.9% and 18.2% respectively.

In the first half of 2015, operating revenue of the segment was RMB485.7 billion, representing a decrease of 25.5% over the same period of 2014.

In the first half of 2015, the refining margin (defined as sales revenues less crude oil and refining feedstock costs and taxes other than income tax, divided by the throughput of crude oil and refining feedstock) was RMB 347.8 per tonne, representing an increase of 15.8% over the same period of 2014. The segment improved the margin level of refined oil products by promoting the oil products quality upgrade projects and optimisation of product mix. The segment realized an operating profit of RMB 15.3 billion in the first half of 2015, representing an increase of 57% over the same period of 2014.

Marketing and Distribution

In the first half of 2015, in light of the changes in supply and demand, the Company optimised marketing structure to increase retail volume and single station throughput. We accelerated the transformation from an oil products supplier to a comprehensive service provider by complimenting the rapid development of non-fuel business with that of fuel business and achieving volume and profit growth. In the first half of 2015, the total sales volume of refined oil products grew by 5.3% to 92.97 million tonnes, of which domestic sales were 83.92 million tonnes, up 3.6% from the same period of previous year. Revenue from our non-fuel business reached RMB 13.33 billion, an increase of 85.4% from the same period in 2014.

In the first half of 2015, the operating revenue of the segment was RMB 565.6 billion, decreased by 22.2% over the same period of 2014, which was mainly due to the decline of gasoline and diesel prices compared with same period of 2014. In the first half of 2015, the segment's operating profit was RMB15.2 billion, representing a decrease of RMB 3.6 billion over the same period of 2014, mainly due to weak diesel demand and smaller realised spread.

Chemicals

In the first half of 2015, the Company further optimised feedstock and product mix to achieve better cost efficiency. We put our efforts in R&D, production and marketing of new products, and maintained production volume growth in high value-added products, the ratio of performance compound in synthetic resin and differentiation rate of synthetic fiber rose to 57.7% and 81.0% respectively, up by 1.4 and 2.4 percentage points compared with the same period of last year. The chemical segment achieved better performance by strengthening the coordination between production and marketing. In the first half of 2015, ethylene production reached 5.457 million tonnes, up 7.3% from the same period of last year, and chemical sales volume was 30.3 million tonnes, up 3.8% compared with the same period of last year.

In the first half of 2015, operating revenue of the chemicals segment was RMB 166.3 billion, representing a decrease of 22.1% over the same period of 2014, which was mainly due to the decrease of chemical products prices compared with the same period of 2014. The segment's operating profit during the six-month period ended 30 June 2015 was RMB 10.1 billion, representing an increase of RMB 14.1 billion compared with the same period of 2014, mainly due to the segment's optimisation of products mix. At the same time, the segment seized the opportunity of the recovery of chemical products margin and improved the profitability.

Health, Safety and the Environment

In the first half of 2015, the Company fully implemented safety responsibilities at all levels, conducted specific safety inspections, and took identification and management on potential hazards. We made optimal adjustments to emergency response system and promoted HSE conformance. Hence we maintained work safety in general. We pay close attention to environment protection, energy saving, emission reduction as well as green and lowcarbon development. We promoted Contract Energy Management and construction of energy management system, and implemented "Clear Waterand Blue Sky" program. Comparing to the same period last year, the Company's energy intensity was down by 2.77%, COD in discharged wastewater was down by 4.09%, SO2 emission was down by 4.84%, NOx emission was down by 4.23%, Ammoniacal Nitrogen emission was down by 3.91%.

Capital Expenditures

The Company focused on quality and profitability of business expansions, and optimised its assets portfolio and investment. A number of key projects have been well underway. CAPEX for the first half was RMB 23.508 billion. CAPEX for E&P was RMB 13.418 billion, mainly for exploration and development in Shengli oil field, Tahe oil field and Sichuan Basin, the LNG projects in Guangxi and Tianjin, pipeline boosting for Sichuan to East China Gas Transmission Project, construction of pipelines exporting gas from Fuling shale gas filed, Jinan-to-Qingdao Gas Transmission Pipeline II Project, and overseas projects. CAPEX for Refining was RMB 3.187 billion, mainly for refinery revamping and gasoline and diesel quality upgrading projects in Qilu and Jiujiang refineries. CAPEX for Marketing and Distribution was RMB3.781 billion, mainly for developing and renovating service stations, building oil products pipelines, oil depots and other storage facilities, and specific projects for safety hazards rectification and vapor recovery. We newly developed 207 service stations in the first half of 2015. CAPEX for Chemicals was RMB 2.519 billion, mainly for the East Ningxia coal chemical project and the Wuhan ethylene project. CAPEX for Corporate and Others was RMB 603 million, mainly for R&D facilities and IT application projects.

Business Prospects

Looking into the second half, the world's economy is expected to recover slowly. China's economy will maintain its steady growth. With a general over supply situation of international crude oil market, the oil price is expected to fluctuate at a low level. Domestic demand for oil and gas is anticipated to grow. The overall demand for oil products and chemicals will grow steadily with the consumption mix to be further adjusted. Given the current state, the Company will undertake initiatives in the following key areas.

In exploration and development, we will step up new technology development and application to promote progressive exploration and reservoir evaluation in oilrich sag in East China, Tahe oil field and the west rim of Junggar Basin. In natural gas development, we will promote the development and assessment in the gas fields of Erdos, Sichuan basin and Songliao Basin, and push ahead with Fuling shale gas field development so as to deliver the 1st phase capacity building target of 5 billion cubic meters. In the second half of the year, we expect to produce 177 million barrels of crude oil and 537 billion cubic feet of natural gas.

In refining, we will continue to adopt a market-oriented and profitability-driven strategy, optimise production plan and ensure safe and stable operations. We will fine-tune crude oil resources allocation to lower crude cost, and accelerate oil products quality upgrading. The Company will actively expand marketing of lubricants, LPG and asphalt. Meanwhile, we will actively control costs to improve cost competitiveness. We plan to process 122.7 million tonnes of crude oil in the second half.

In marketing and distribution, we will intensify market analysis and forecast to ensure both sales volume growth and profitability, optimise resource structure to consolidate and expand market share, and put customers first by adopting more proactive retail strategies to stabilise direct sales and distribution volume. We will continuously push forward a market-oriented and specialised development in non-fuel business, strengthen key products marketing and procurement management, and promote transformation from an oil products supplier to a comprehensive service provider. In the second half, we plan to sell 87 million tonnes of refined oil products in the domestic market.

In chemicals, we will proactively adjust the product mix, promote new products R&D in line with expanded production and sales. We will fine-tune the operations of facilities at reasonable utilisation rate and continuously to reduce optimise feedstock mix cost. Meanwhile, we will deepen the inter links amongst production, marketing, research and product application, enhance our marketing strategy and improve customer services. In the second half, we plan to produce 5.6 million tonnes of ethylene.

In the second half, we'll fully leverage our advantages across the integrated value chain, arrange production and operation for maximum profitability, spare no efforts in expanding market, and intensely keep the cost and expenses under control. We will ensure HSE performance, strengthen our capability in sustainable development and strive for better operating results. In the meantime, we will adapt to and capture the opportunities of the new normals of Chinese economic growth, and set forth the 13th five-year plan of the company.

First Quarter 2015 Financial Results

• Revenues was RMB 478.24 billion, down 25.4% over the same period of last year.
• Basic EPS were RMB 0.014 vs. last years quarter

BEIJING, March 22, 2015 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or "the Company") (HKEX: 386; CH: 600028; NYSE: SNP) today announced its annual results for the year ended 31 December 2014.

Financial Highlights:

• In accordance with the International Financial Reporting Standards (IFRS), in 2014, the Company's turnover, other operating revenues and other income was RMB2,825.9 billion, down 1.9% year-on-year, mainly due to the price decline of crude oil and petrochemical products. Operating profit was RMB73.5 billion, down 24.1% year-on-year. Profit attributable to equity shareholders of the Company was RMB 46.5 billion, down 29.7%. Basic earnings per share were RMB0.398.
• In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), in 2014, the Company's operating income was RMB2,825.9 billion, down 1.9% year-on-year. Operating profit was RMB65.5 billion, down 32.1%. Net profit attributable to equity shareholders of the Company was RMB47.4 billion, down 29.4% year-on-year. Basic earnings per share were RMB0.406.
• The Board of Directors proposed a final cash dividend of RMB0.11 per share. Combined with the interim dividend of RMB0.09 per share, the total annual cash dividend for 2014 is RMB0.20 per share. The Company has gradually increased its dividend payout ratio in recent years, with dividend payout ratio reaching over 50% in 2014 (by IFRS). Total cash dividend paid for the full year was RMB23.8 billion.

Operations Highlights:

In 2014, the global economic recovery remained weak while China's economic growth was 7.4%. International crude oil prices fluctuated at a high level in the first half of the year before plunging in the second half, with a precipitous drop in the fourth quarter. In the second half of 2014, domestic refined oil products experienced 11 consecutive cuts. Through enhanced analysis and evaluation of macroeconomic and market trends, we actively responded to the significant change in international crude oil prices while accelerating structural adjustments, expanding our markets and improving management and cost controls. The Company maintained stable production and operations in general.

• Production of oil and gas grew steadily. Domestic crude oil production remained stable, while overseas production increased significantly. Fuling shale gas proceeded smoothly with its first phase capacity construction. Natural gas production and sales volume both increased significantly. Average unit all-in-cost has been well controlled;
• In the refinery business, crude oil processing and refined oil production recorded solid growth. The Company adjusted its product mix in response to the market, increasing production of oil products with strong demand and high-value-added products. Production of gasoline (especially high-octane gasoline) and jet fuel grew substantially, further lowering the diesel to gasoline ratio. The Company accelerated the quality upgrade of oil products. We also improved our resource allocation and strengthened inventory management and cost control;
• Marketing and distribution segment progressed smoothly with its reform plan, laying the foundation for us to further transform the operational systems and mechanisms of the marketing business, explore multiple business models, and develop through innovation. In light of the extremely competitive refined oil product market, we adjusted our marketing strategies and improved our sales structure to increase total sales volume. Service-driven non-fuel business recorded significant growth compared to last year.
• Chemical segment proactively responded to severe market conditions by adjusting its feedstock mix and lowering raw material costs. We continued to adjust our product mix, increase the proportion of high-value-added products, and also strengthened R&D, production and sales of our new products. We optimised operations of our manufacturing facilities, adjusted utilization rates, and shut down facilities with unsatisfactory marginal costs.

Fu Chengyu, Chairman of Sinopec said: "Under the severe market conditions of 2014, Sinopec focused on growth quality and efficiency, achieving safe and stable production. We effectively controlled the cost of each segment and maintained favourable growth momentum through adjustment and improvement in our business and product structure. The Company continued to fulfil its social responsibilities across all aspects. We focused on the effects of climate change and worked to achieve growth in a low-carbon and green manner, promoting win-win development between Sinopec and its various stakeholders. In 2015, China will enter a new normal phase of slower growth while international crude oil prices are likely to stay low. The Company still faces a challenging operating environment. Sinopec will seize the opportunities and tackle the challenges. We are committed to development through the improvement of internal quality and efficiency. We will maintain our strategy with innovation at the core in order to transform Sinopec to a scientific and services based company, and gradually shift the industry structure from 'petrol and chemicals' to 'energy and materials'."

Business Segment Operations Analysis

Exploration and production

In 2014, driven by management and technology innovation, we implemented exploration and development programs efficiently and made a number of new findings, some of which were commercial discoveries. With 106.75 billion cubic meters of proven reserves added to the Fuling shale gas project, Fuling became the first large scale shale gas field in China. In 2014, newly added proven oil and gas reserves amounted to 431 million barrels. In crude oil development, we focused on improving returns through the optimal development of new blocks, refined development in mature fields, and continuously enhancing recovery rates. In natural gas development, we accelerated the capacity construction of major projects, strengthened management of the Puguang gas field and other mature fields, adjusted marketing strategies, expanded sales volume, and achieved better economic returns. In shale gas development, the Fuling project's Phase I construction, with capacity of 5 billion cubic meters per year, progressed smoothly. Daily output of all producing wells exceeded design targets, laying a good foundation for future development. In 2014, production of oil and gas rose by 8.4% to 480.22 million barrels of oil equivalent, among which domestic crude oil production remained flat, while overseas production increased significantly. The Company acquired some upstream assets at the end of last year. Natural gas production rose by 8.5% to 716.4 billion cubic feet. Average unit all-in-cost has been well controlled.

In 2014, the operating revenues of this segment were RMB 227.6 billion, representing a decrease of 6.0% over 2013, mainly attributable to the decrease in crude oil price. Operating profit was RMB47.1 billion, down 14.1% year-on-year.

Third Quarter Results 2014 Financial Results

• Revenues was RMB 2,115.6 billion for the first three quarters of 2014, down 1.13% over the same period of last year.
• Basic earnings per share for the first three quarters were RMB 0.444 while third quarter basic earnings per share were RMB 0.165.

BEIJING, Aug. 22, 2014 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or "the Company") (HKEX: 386; CH: 600028;NYSE: SNP) today announced its interim results for the six months ended 30 June 2014.Sinopec Announces 2014 Interim Results

In accordance with the International Financial Reporting Standards (IFRS), in the first half of 2014, the Company's turnover, other operating revenues and other income was RMB1,356.17 billion, down 4.2% year-on-year. However, the Company still maintained double digit growth in operating profit of RMB52.27 billion, up 11.8% year-on-year. Profit attributable to equity shareholders of the Company was RMB32.54 billion, up 7.5% year-on-year. Basic earnings per share were RMB0.279.

BEIJING, April 28, 2014 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or "the Company") (HKEX: 386; CH: 600028; NYSE: SNP) today announced its unaudited first quarter results for the three months ended 31 March 2014.

Key Financials:

• In accordance with the International Financial Reporting Standards (IFRS), the Company's turnover, other operating revenues and other income was RMB 641.065 billion, a decrease of 7.8% year-on-year, while operating profit was RMB 24.817 billion in the first quarter, down 9.98% year-on-year but increasing 34.17% quarter-on-quarter. Net profit attributable to equity shareholders of the Company was RMB 14.121 billion, down 15.33% year-on-year. Basic earnings per share wereRMB 0.121 vs. last years .0.145
• In accordance with the PRC Accounting Standards for Business Enterprises (ASBE), the Company earned operating income of RMB 641.065 billion and a total profit of RMB 19.3 billion in the first quarter, a decrease of 16.11% year-on-year. Net profit attributable to equity shareholders of the Company was RMB 13.477 billion, a decrease of 14.88% over the same period last year. Basic earnings per share were RMB 0.116.

CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES

BEIJING, Oct. 29, 2013 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or "the Company") (CH: 600028; HKEX: 386; NYSE: SNP; LSE: SNP) today announced its unaudited results for the nine months ended 30 September, 2013.

Financial Highlights:

• In accordance with the China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating income for the first three quarters of 2013 was RMB 2139.9 billion, up 5.7% over the same period of last year, and operating profit wasRMB 74.71 billion, up 25.8% over the same period of last year. Net profit attributable to equity shareholders of the Company was RMB 51.6 billion for the three quarters, up 23% over the same period of last year. Net profit attributable for equity shareholders of the Company for the third quarter was RMB 22.18 billion, up 63.3% quarter on quarter. Basic earnings per share for the first three quarters were RMB 0.445, up 19.6% over the same period of last year.
• In accordance with the International Financial Reporting Standards ("IFRS"), the Company's turnover and other revenue in the first three quarters of 2013 was RMB 2139.9 billion, up 5.7% over the same period of last year. Operating profit was RMB 78.29 billion, up 14.7% over the same period of last year. Profit attributable to equity shareholders of the Company was RMB 52.3 billion for the first three quarters, up 22.1% over the same period of last year. Profit attributable to equity shareholders of the Company was RMB 22.02 billion for the third quarter, up 61.7% quarter on quarter. Basic earnings per share for the first three quarters were RMB 0.451, up 19% over the same period of last year.

In the first three quarters of 2013, China's economy grew steadily with GDP up by 7.7% over the same period of last year. Domestic demand for oil products and chemical products continued to grow. The Chinese government further improved the pricing mechanism for oil products by implementing an adjustment of natural gas price and announcing the premium pricing policy for upgraded quality oil products. Based on the macroeconomic trends and market demand, the Company organised its operations with quality and efficiency being the top priorities for growth. It also promoted structural adjustment and change in the development model, while exercising strict control over costs and expenditures. All of these efforts contributed to the significant growth in operating results for the first three quarters of 2013.

BEIJING, Aug. 25, 2013 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or "the Company") (HKEX:386; CH:600028; NYSE: SNP) today announced its interim results for the six months ended 30 June 2013.

Financial Highlights:

• In accordance with International Financial Reporting Standards ("IFRS"), the Company's turnover, other operating revenues and other income was RMB1,415.244 billion, up 5.0% year-on-year. Operating profit was RMB46.741 billion, an increase of 16.6% year-on-year. Net profit attributable to owners of the Company was RMB30.281 billion, a 23.6% increase year-on-year. Earnings per share was RMB0.262, up 20.7% over the same period last year.
• In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), the Company's operating income wasRMB1,415.244 billion, up 5.0% year-on-year. Operating profit was RMB43.693 billion, an increase of 30.4%. Net profit attributable to equity shareholders of the Company was RMB29.417 billion, a 24.1% increase year-on-year. Earnings per share was RMB0.254, an increase of 21.0% year-on-year.
• The Board of Directors approved an interim dividend of RMB0.09 per share, representing a 20.9% increase in cash dividend over the same period last year.

In the first half of 2013, global economic recovery remained weak, while China's economy grew steadily with 7.6% GDP growth over the same period last year. Domestic demand for oil products and chemical products continued to grow. Prices of chemical products dropped due to an increase in imported products. The Chinese government further improved the pricing mechanism for oil products and announced an adjustment to the price of natural gas.

First Quarter 2013 Results

• In 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.
• In 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.

Financial Highlights:

• In accordance with the PRC Accounting Standards for Business Enterprises (�ASBE�), in the third quarter of 2012, the Company�s operating income increased by 5.43% year-on-year to RMB676.694 billion. Net profit attributable to shareholders of the company decreased by 7.5% year-on-year to RMB18.249 billion and the basic earnings per share was RMB0.210, a reduction of 7.9% year-on-year. In accordance with the International Financial Reporting Standards (IFRS), in the third quarter of 2012, the Company�s turnover, other operating revenues and other income amounted to RMB676.694 billion, increased by 5.43% over the same period of last year. Operating profit amounted to RMB28.185 billion in the third quarter, and net profit attributable to the shareholders of the Company amounted to RMB18.326 billion, down by 9.38% from the same period of last year. Basic earnings per share was RMB0.211, down by 9.44% year-on-year.

In the first three quarters of 2012, the domestic demand for oil products and chemical products continued to rise, though at a slower rate. The price of chemical products fell in the second quarter, but rebounded in the third quarter. The Company made rational arrangements for production and operations in accordance with the macroeconomic trend and market demand, and actively adjusted its product mix, leading to a remarkable quarter-on-quarter improvement of results in the third quarter.

Third Quarter 2011 Results

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.

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.

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. 

Guidance Report: