PR Newswire
BEIJING, Aug. 28, 2016
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:
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.
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."
Business Review
Exploration and Production
To address the challenges of low oil prices, the Company optimised exploration and production activities in the first half of this year and achieved satisfactory results. Its continuing efforts in exploration paid off with major discoveries in the Tahe of Xingjiang Autonomous Region, Beibu Gulf of the Guangxi, and the Yin-E Basin in Inner Mongolia Autonomous Region and new nature gas findings in west Sichuan and the Erdos Basin. A strong focus was placed on the development of natural gas. Phase Two shale gas development project in Fuling Shale Gas field further facilitated its shale gas development. Production in the first half of 2016 was 218.99 million barrels of oil equivalent, of which domestic crude production was 128.38 million barrels, overseas crude production was 25.79 million barrels, and total gas production was 388.69 billion cubic feet. In production, The Company strengthened cost discipline, reduced high-cost oil production, and increased natural gas production.
In the first half of 2016, operating revenues of the segment were RMB 52.5 billion, representing a decrease of 25.4% year on year. This was mainly due to lower sales prices of crude oil and decreased city-gate price of natural gas which was adjusted by the Chinese government in November 2015. In the first half of 2016, the oil and gas lifting cost was RMB 744 per tonne, representing a decrease of 3.6% year on year mainly due to the Company's strict control over costs and expenses.
Exploration and Production: Summary of Operations | |||
| Six-month period ended 30 June | Changes | |
2016 | 2015 | (%) | |
Oil and gas production (mmboe) | 218.99 | 232.95 | (5.99) |
Crude oil production (mmbbls) | 154.17 | 174.07 | (11.43) |
China | 128.38 | 147.47 | (12.95) |
Overseas | 25.79 | 26.60 | (3.05) |
Natural gas production (bcf) | 388.69 | 353.26 | 10.03 |
Refining
In the first half of this year, the Company adjusted its product mix in response to sharp increase of throughput from independent refineries and ample market supply. The Company further optimised its oil product mix by increasing the production of gasoline, kerosene and light chemical feedstock and decreasing the ratio between diesel and gasoline, reduced its crude purchasing costs, moderately increased refined oil products export and pressed ahead with oil products standards upgrading. Centralized marketing of the lubricant, LPG and asphalt businesses helped enhance the profitability of those products. In the first half of 2016, the Company processed 116 million tonnes of crude oil and produced 73.26 million tonnes of refined oil products, with production of gasoline and kerosene up by 3.74% and 3.36%, respectively, from levels in the first half of 2015.
In the first half of 2016, operating revenues of the segment were RMB 397.0 billion, representing a decrease of 18.3% year on year. This was mainly attributable to sharply decreased prices of products.
In the first half of 2016, 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 514.4 per tonne, representing an increase of 47.9% year on year. The change was mainly attributable to refining segment's efforts in advancing oil products quality upgrading, optimising product mix, increasing high-value-added products yield and expanding the market to increase the profitability of other refined oil products. In the first half of 2016, the segment realised an operating profit of RMB 32.6 billion, representing an increase of RMB 17.3 billion year on year.
Refining: Summary of Operations | |||
| Six-month period ended 30 | Changes | |
2016 | 2015 | (%) | |
Refinery throughput (million tonnes) | 115.90 | 118.89 | (2.51) |
Gasoline, diesel and kerosene production | 73.26 | 74.75 | (1.99) |
Gasoline (million tonnes) | 28.03 | 27.02 | 3.74 |
Diesel (million tonnes) | 32.93 | 35.82 | (8.07) |
Kerosene (million tonnes) | 12.30 | 11.90 | 3.36 |
Light chemical feedstock production | 19.37 | 19.07 | 1.57 |
Light yield (%) | 76.61 | 76.69 | (0.08) percentage |
Refining yield (%) | 94.75 | 94.98 | (0.23) percentage |
Note: Includes 100% of production of domestic joint ventures.
Marketing and Distribution
In the first half of 2016, the Company coordinated and optimised resources and took full advantage of the synergy between its fuel and non-fuel businesses, achieving growth in both total business volume and retail sales despite ample fuel supply and strong competition in the market. In addition, the Company adjusted marketing efforts by increasing the retailing of premium products with high-octane numbers. The Company further improved its product pipeline network, accelerated the building of service stations and optimised marketing network. The total sales volume of refined oil products in the first half of 2016 was up by 4.5% from the corresponding period last year to 97.17 million tonnes, of which domestic sales accounted for 86.51 million tonnes, up by 3.1%. Non-fuel business transaction was up by 43% from the first half of 2015 to 18.5 billion yuan owing to Internet+ marketing promotions and other measures.
In the first half of 2016, the operating revenues of the segment were RMB 501.0 billion, decreased by 11.4 % year on year. This was mainly due to declined prices of gasoline and diesel. The Company has actively expanded the sales volume, which has partially offset the effect of the declined prices. In the first half of 2016, due to higher retail ratio of high-value-added and high octane number oil products and more external resources, the margin of oil product sales was increased. The segment's operating profit was RMB 15.8 billion, representing an increase of RMB 600 million year on year.
Marketing and Distribution: Summary of Operations | |||
| Six-month period ended 30 June | Changes | |
2016 | 2015 | (%) | |
Total sales volume of refined oil products | 97.17 | 92.97 | 4.52 |
Total domestic sales volume of refined oil | 86.51 | 83.92 | 3.09 |
Retail (million tonnes) Werbung Mehr Nachrichten zur China Petroleum & Chemical ADR Aktie kostenlos abonnieren
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