Sign In  |  Register  |  About Livermore  |  Contact Us

Livermore, CA
September 01, 2020 1:25pm
7-Day Forecast | Traffic
  • Search Hotels in Livermore

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Sinopec Achieved Good Performance in 2023 Q1 Net Profit Reached RMB 20.7 Billion

BEIJING, CHINA / ACCESSWIRE / April 27, 2023 / China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX:00386)(SSE:600028) today announced its unaudited first quarterly results for the three months ended 31 March 2023.

Financial Highlights

  • In accordance with the IFRS, the Company's operating income for the first quarter of 2023 was RMB 791.331 billion, up by 2.59% year on year; the net profit attributable to shareholders of the Company was RMB 20.740 billion; the basic earnings per share were RMB 0.173. In accordance with the CASs, the net profit attributable to equity shareholders of the Company for the first quarter was RMB 20.102 billion; the basic earnings per share were RMB 0.168. The Company maintained sound financial position.
  • The Company achieved high quality operating results. In the first quarter, the Company's oil and gas production reached 124.6 million barrels of oil equivalent, up by 2.6% year on year, with natural gas production reaching 330.47 billion cubic feet, up by 5.3% year on year. The Company processed 62.24 million tonnes of crude oil, and total sales volume of refined oil products was 56.16 million tonnes, up by 10.1% year on year. The ethylene production was 3.347 million tonnes, and the total chemicals sales volume was 20.69 million tonnes.

Operating Review

In the first quarter of 2023, China's economy improved with gross domestic product (GDP) up by 4.5% year on year. The international crude oil prices fluctuated in a wide range and the spot price of Platt's Brent for the first quarter averaged USD81.27 per barrel, down by 19.7% year on year. The domestic demand for refined oil products rebounded rapidly, demand for natural gas maintained growth year on year, and demand for chemical products recovered.

The Company seized the favorable market opportunity, optimized the whole business chain, strengthened the coordination of production and marketing, made great efforts to expand sales, and achieved good performance. In accordance with CASs, net profit attributable to equity shareholders of the Company was RMB 20.102 billion in the first quarter of 2023. In accordance with IFRS, net profit attributable to shareholders of the Company was RMB 20.740 billion in the first quarter of 2023.

Exploration and Production: The Company intensified efforts in high quality exploration, expanded the scale of profitable production capacity, and made positive progress in maintaining oil production, increasing gas output and reducing cost. In exploration, we focused on expanding resources, increasing reserve and obtaining more exploration licenses, strengthened risk exploration in new regions and areas, and made important breakthroughs of oil and gas exploration in Shunbei, Chuanbei, and Jiyang depression. In development, we accelerated the capacity building of Shunbei and Tahe oilfields, strengthened fine-tuned development of mature oil fields, and sped up capacity building of natural gas in Western Sichuan and Southeast Sichuan. We also optimized the resources structure of LNG to reduce procurement costs, strengthened operation optimization of natural gas business, achieving a constant improvement in the profitability of whole natural gas business chain. In the first quarter, the Company's oil and gas production reached 124.6 million barrels of oil equivalent, up by 2.6% year on year, with natural gas production reaching 330.47 billion cubic feet, up by 5.3% year on year. The exploration and production segment realised an earnings before interest and tax (EBIT) of RMB 13.357 billion.

Exploration and Production

Unit

Three-month period ended 31 March

Changes

2023

2022

(%)

Oil and gas production

million boe

124.60

121.41

2.6

Crude oil production

million barrels

69.49

69.07

0.6

China

million barrels

61.86

61.60

0.4

Overseas

million barrels

7.63

7.47

2.1

Natural gas production

billion cubic feet

330.47

313.94

5.3

Realised crude oil price

USD/barrel

75.21

89.02

(15.5)

Realised natural gas price

USD/thousand cubic feet

8.70

8.14

6.9

Conversion:

For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil, 1 tonne = 7.25 barrels. For production of natural gas, 1 cubic meter = 35.31 cubic feet.

Refining: The Company actively addressed the market changes, vigorously optimized production operation to maximize the overall profits along the business chain. Closely following market changes, we maintained high utilisation rate. We flexibly adjusted the procurement strategies to reduce procurement costs. We optimized the product mix and increased the exports of refined oil products. We also accelerated the construction of world-class refining bases and advanced with structural adjustment projects in an orderly manner. In the first quarter, the Company processed 62.24 million tonnes of crude oil, yielding 37.30 million tonnes of refined oil products. The refining segment realised EBIT of RMB 10.459 billion.

Refining Unit

Three-month period ended 31 March

Changes

(%)

2023

2022

Refinery throughput

million tonnes

62.24

64.19

(3.0)

Gasoline, diesel and kerosene production

million tonnes

37.30

37.36

(0.2)

Gasoline

million tonnes

15.16

16.48

(8.0)

Diesel

million tonnes

15.58

15.72

(0.9)

Kerosene

million tonnes

6.56

5.16

27.1

Light chemical feedstock production

million tonnes

10.61

11.79

(10.0)

Light product yield

%

74.82

74.48

0.34

percentage points

Refining yield

%

94.88

95.26

(0.38)

percentage points

Note: Including 100% production of domestic joint ventures.

Marketing and Distribution: The Company seized the favorable opportunity arising from the rapid recovery of demand, fully leveraged the advantages of integrated business and marketing network, strengthened resources coordination, made every effort to expand sales volume, and achieved significant improvement of the sales volume and profits. We optimised the sales network of refined oil products, made continuous efforts for the transition to an integrated energy service provider of Petro-Gas-Hydrogen-Power-Services. We continued to improve the quality and profitability for the non-fuel business. In the first quarter, total sales volume of refined oil products was 56.16 million tonnes, up by 10.1% year on year. The marketing and distribution segment realised EBIT of RMB 8.475 billion.

Marketing and Distribution

Unit

Three-month period

ended 31 March

Changes

(%)

2023

2022

Total sales volume of refined oil products million tonnes

56.16

51.02

10.1

Total domestic sales volume of refined oil products million tonnes

44.57

41.06

8.5

Retail

million tonnes

29.36

27.34

7.4

Direct sales & Distribution

million tonnes

15.21

13.72

10.9

Annualized average throughput per station tonnes

3,802

3,559

6.8

Note: The total sales volume of refined oil products includes the amount of trading volume.

Chemicals: Facing severe challenges resulting from the concentrated release of chemical capacity and fierce competition, the Company closely followed the market demand, optimised the structure of feedstock, facilities and products with a profit-driven orientation, maintained high utilisation rate in profitable facilities, increased production of high value-added products such as PV-grade EVA and polybutadiene rubber, and reduced products with no marginal contribution. We actively promoted the construction of advanced capacity. In the first quarter, the ethylene production was 3.347 million tonnes, and the total chemicals sales volume was 20.69 million tonnes, up by 0.2% year on year. The chemicals segment realised EBIT of RMB -3.022 billion.

Chemicals

Unit

Three-month period ended 31 March

Changes

(%)

2023

2022

Ethylene thousand tonnes

3,347

3,606

(7.2)

Synthetic resin thousand tonnes

4,816

4,867

(1.0)

Synthetic rubber thousand tonnes

349

353

(1.1)

Monomers and polymers for synthetic fibre thousand tonnes

2,034

2,491

(18.3)

Synthetic fibre thousand tonnes

258

286

(9.8)

Note: Including 100% production of domestic joint ventures.

Capital expenditure: In the first quarter, focusing on quality and return of investment, the Company continuously optimised its investment projects, with total capital expenditures of RMB 23.40 billion. The capital expenditures of the exploration and production segment were RMB 14.98 billion, mainly used for the crude oil and gas production capacity construction in Shunbei, Tahe, Western Sichuan and Southeast Sichuan, and construction of the Shengli Shale Oil National Demonstration Zone and storage and transportation facilities of Shandong LNG. The capital expenditures of the refining segment were RMB 4.22 billion, mainly used for the expansion of Zhenhai refinery and structural adjustment of Anqing and Yangzi refineries. The capital expenditures of the marketing and distribution segment were RMB 0.78 billion, mainly used for renovation of the existing stations. The capital expenditures of the chemicals segment were RMB 3.27 billion, mainly used for ethylene projects in Tianjin Nangang and Hainan, Yizheng PTA project, caprolactam relocation project in Baling, and new material projects in Zhenhai and Tianjin, etc. The capital expenditures of the corporate and others were RMB 0.15 billion, mainly used for information technology projects.

Appendix: Principal financial data and indicators

Principal financial data and indicators prepared in accordance with CASs

RMB million

Items

As of 31

March 2023

As of 31

December 2022

(before adjustment)

As of 31

December 2022

(adjusted)

Change

(%)

Total assets

2,011,153

1,948,640

1,951,121

3.08

Total equity attributable to equity shareholders of the Company

806,963

785,577

788,471

2.35

RMB million

Three-month period

ended 31 March

2023

Three-month period

ended 31 March

2022

(before adjustment)

Three-month period ended 31 March

2022

(adjusted)

Change

(%)

Operating income

791,331

771,386

771,386

2.59

Net profit attributable to equity shareholders of the Company

20,102

22,605

22,800

(11.83)

Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses

19,716

22,450

22,645

(12.93)

Net cash flow used in operating activities

(18,397)

(46,781)

(46,781)

-

Basic earnings per share (RMB)

0.168

0.187

0.188

(10.64)

Diluted earnings per share (RMB)

0.168

0.187

0.188

(10.64)

Weighted average return on net assets (%)

2.52

2.88

2.90

(0.38)

percentage

points

Note: In accordance with the requirements of both the Interpretation of Accounting Standards for Business Enterprises No. 16 and the Accounting Standard for Business Enterprises No. 18-Income Taxes, the Company retrospectively adjusted the relevant items of the financial statements.

Extraordinary items

During the reporting period

(income)/expenses(RMB million)

Net gain on disposal of non-current assets

(78)

Donations

4

Government grants

(676)

Gains on holding and disposal of various investments

(181)

Other extraordinary expenses, net

257

Subtotal

(674)

Tax effect

182

Total

(492)

Attributable to:
Equity shareholders of the Company

(386)

Minority interests

(106)

Principal financial data and indicators prepared in accordance with IFRS

RMB million

Items

As of 31

March 2023

As of 31

December 2022

(before adjustment)

As of 31

December 2022

(adjusted)

Change

(%)

Total assets

2,011,153

1,948,640

1,951,121

3.08

Total equity attributable to shareholders of the Company

806,099

784,706

787,600

2.35

RMB: million

Three-month period ended 31 March

2023

Three-month period

ended 31 March

2022

(before adjustment)

Three-month period

ended 31 March

2022

(adjusted)

Change

(%)

Revenue

791,331

771,386

771,386

2.59

Operating profit

31,090

32,960

32,960

(5.67)

Net profit attributable to shareholders of the Company

20,740

23,338

23,533

(11.87)

Net cash flow used in operating activities

(18,397)

(46,781)

(46,781)

-

Basic earnings per share (RMB)

0.173

0.193

0.194

(10.82)

Diluted earnings per share (RMB)

0.173

0.193

0.194

(10.82)

Return on net assets (%)

2.57

2.94

2.96

(0.39)

percentage

points

Note: In accordance with the requirements of the International Accounting Standards 12, the Company retrospectively adjusted the relevant items of the financial statements.

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the production, sale, storage and transportation of refinery products, petrochemical products, coal chemical products, synthetic fibre, and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information; hydrogen energy business and related services such as hydrogen production, storage, transportation and sales; battery charging and swapping, solar energy, wind energy and other new energy business and related services.

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

Investor Inquiries:

Beijing
Tel:(86 10) 5996 0028
Fax:(86 10) 5996 0386
Email:ir@sinopec.com

Media Inquiries:

Hong Kong
Tel:(852) 2522 1838
Fax:(852) 2521 9955
Email sinopec@prchina.com.hk

SOURCE: China Petroleum & Chemical Corporation



View source version on accesswire.com:
https://www.accesswire.com/751605/Sinopec-Achieved-Good-Performance-in-2023-Q1-Net-Profit-Reached-RMB-207-Billion

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Livermore.com & California Media Partners, LLC. All rights reserved.