China Petroleum & Chemica (NYSE:SNP)

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.

BEIJING, March 24, 2013 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or "the Company") (CH: 600028; HKEX: 386; NYSE: SNP; LSE: SNP) today announced its annual results for the year ended 31 December 2012.

Financial Highlights:

• In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), in 2012, the Company's operating income was RMB2,786.0 billion, up 11.2% year-on-year, and operating profit was RMB87.9 billion. Net profit attributable to equity shareholders of the Company was RMB63.5 billion, down 11.4% year-on-year. Basic and diluted earnings per share were RMB0.731 and RMB0.704 respectively.
• In accordance with the International Financial Reporting Standards (IFRS), in 2012, the Company's turnover, other operating revenues and other income was RMB2,786.0 billion, up 11.2% year-on-year, operating profit was RMB98.6 billion. Profit attributable to equity shareholders of the Company was RMB63.9 billion, down 12.8% year-on-year. Basic and diluted earnings per share were RMB0.736 and RMB0.708 respectively.
• The Board of Directors proposed a final cash dividend of RMB0.2 per share. Combined with the interim dividend ofRMB0.10 per share, the total annual cash dividend for 2012 is RMB0.30 per share (tax inclusive), with dividend payout ratio reaching 41% (2011:36%). In addition, the Board proposed 2 bonus shares from retained earnings plus 1 bonus share from capital reserve for every 10 existing shares to all shareholders.

The year 2012 saw decelerated growth globally, a tepid recovery in the U.S. economy, the outbreak of European sovereign debt crisis and a dramatic slowdown in the growth of the emerging markets. China's economy slowed down in the first half of the year characterised by weak market demand. With the Chinese government introducing and strengthening macroeconomic control and expediting structural adjustments, the China's economy stabilized and then recovered, with a GDP growth of 7.8% for the year. Based on analysis and projection on the macro economy and market trends, the Company achieved positive results through proactive response to market changes, expansion of resources and markets, management improvement and cost reductions.

Mr. Fu Chengyu, Chairman of Sinopec said, "The world witnessed difficult macroeconomic conditions in 2012, as well as a complex and volatile environment in the petroleum and petrochemical markets. By planning ahead, the Company was able to respond proactively to market dynamics, while also strengthening corporate governance, increasing shareholder returns and deepening internal reforms. Its ability to adapt to difficult market conditions leaves the Company well positioned to build a leading energy and chemicals enterprise and achieve positive operating results.

"The acquisition of overseas oil and gas assets from Sinopec Group will further strengthen our crude oil reserves. This will also enhance our profitability and international competitiveness, as well as create long-term investment value for our shareholders. The Company will continue to deepen structural reforms, in light of strengthening the upstream production capacity and efficiency, and enhancing the mid and downstream product upgrades. To nurture and develop new businesses while improving the quality and efficiency of our existing businesses, Sinopec will endeavor to improve its management capabilities, with a focus on strategic planning and value-based management. We place great importance on our green and low-carbon strategy across the entirety of Sinopec's operations. Sinopec will remain focused on achieving shareholders returns, engaging in activities to advance corporate social responsibility and promote sustainable economic development of the Company and of the society."

BUSINESS PROSPECTS

Looking into 2013, the world economy is expected to recover slowly, with a trend of tepid growth persisting under the complex and precarious environment. While the Chinese economy is showing signs of stability and improvements, its domestic petroleum and petrochemical product markets are still under pressure from both domestic and overseas macroeconomic conditions. Crude oil price is expected to fluctuate within an elevated range during 2013. China's policies to implement and expedite adjustments in its industrial structure and to promote industrialization, urbanization, informatization, modernization in agriculture and growth in domestic consumer demand, as well as optimize the pricing mechanism for oil products and natural gas will combine to create favorable conditions for the Company's reform and development.

In 2013, through safe and stable operations and its market-oriented strategy, the Company will emphasize the quality and efficiency of its development activities. Driven by improvements in management and technical innovations, the Company will strive to fully exploit its markets, optimize production and operations, take full advantage of its existing assets, and actively reduce its costs and expenses.

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: