Sinopec is still booming

China Petroleum & Chemical Corporation (“Sinopec Corp.” or “the Company”) (CH: 600028; HKEX: 386; NYSE: SNP; LSE: SNP) is a 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 Corp. 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 2009 turnover, Sinopec Corp. 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.

The first three quarters of 2010 have been upbeat for Sinopec.

Financial Highlights

In accordance with the PRC Accounting Standards for Business Enterprises (“ASBE”), the Company’s turnover in the first nine months of 2010 was RMB 1,427.622 billion, up 59.8% over the same period in 2009. Net profit attributed to equity shareholders of the Company was RMB 56.397 billion, representing an increase of 11.6% over the previous year. Basic earnings per share was RMB 0.650, rising by 11.6% year-on-year.

In accordance with the International Financial Reporting Standards (“IFRS”), the Company’s turnover, other operating revenues and other income amounted to RMB 1,427.622 billion, representing an increase of 59.8%. Net profit attributable to equity shareholders of the Company was RMB 56.445 billion, up by 11.5% compared to the same period last year. Basic earnings per share was RMB 0.651, up by 11.5% year-on-year.

Capital expenditure for the first three quarters was RMB 55.822 billion.

Business Highlights

The Exploration and Production Segment recorded an operating profit of RMB 40.838 billion for the first nine months, up 140.7% compared to the same period last year. The Company produced 34.93 million barrels of crude oil and 8.87 billion cubic meters of natural gas representing an increase of 1.9% and 45.0% respectively, over the same period of last year.

The Refining Segment generated an operating profit of RMB 8.491 billion, representing a decrease of 60.6% from the same period of last year. The refinery throughput of crude recorded a year-on-year increase of 14.4% to 154 million tons.

The Marketing and Distribution Segment recorded an operating profit of RMB 23.306 billion, representing a year-on-year increase of 4.2%. The total domestic sales of refined oil products and the sales through retail channels amounted to 104.35 million tons and 64.14 million tons, representing a year-on-year increase of 16.5% and 11.2% respectively.

The Chemicals Segment reported an operating profit of RMB 10.393 billion, a decrease of 27.3% from the same period of last year. The output of ethylene and synthetic resin reached 6.61 million tons and 9.532 million tons, up 39.4% and 28.7% respectively.

Mr. Wang Xinhua, Chief Finance Officer of Sinopec Corp. commented: “In the first three quarters of 2010, China’s economy continued to grow rapidly. Domestic demand for oil products and chemical products has grown steadily. The Company has achieved continuous growth and economic gains by seizing the opportunity to further expand, optimizing production operations, exploring growth potential and enhancing efficiency.”

Source: http://english.sinopec.com/media_center/news/20101029/download/20101029j.pdf

 

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