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 Tracking 1243 U.S. listed China Stocks and Counting...
 Tracking 3064 U.S. Stocks and Counting...

 China Petroleum & Chemica (NYSE:SNP)

Tuesday, April 29, 2014
Comments & Business Outlook

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.

Tuesday, April 22, 2014
Comments & Business Outlook

CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES


CONSOLIDATED STATEMENT OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2011, 2012 AND 2013
(Amounts in millions, except per share data)
 
         
Years ended December 31,
 
   
Note
   
2011
   
2012
   
2013
 
         
RMB
   
RMB
   
RMB
 
Operating revenues
                       
Sales of goods
          2,463,767       2,733,618       2,833,247  
Other operating revenues
    3       41,916       52,427       47,064  
              2,505,683       2,786,045       2,880,311  
                                 
Operating expenses
                               
Purchased crude oil, products and operating supplies and expenses
            (2,027,646 )     (2,301,199 )     (2,371,858 )
Selling, general and administrative expenses
    4       (58,960 )     (61,174 )     (69,928 )
Depreciation, depletion and amortization
            (63,816 )     (70,456 )     (81,265 )
Exploration expenses, including dry holes
            (13,341 )     (15,533 )     (12,573 )
Personnel expenses
    5       (45,428 )     (51,767 )     (55,353 )
Taxes other than income tax
    6       (189,949 )     (188,483 )     (190,672 )
Other operating (expenses) / income, net
    7       (1,013 )     1,229       (1,877 )
Total operating expenses
            (2,400,153 )     (2,687,383 )     (2,783,526 )
Operating income
            105,530       98,662       96,785  
                                 
Finance costs
                               
Interest expense
    8       (9,241 )     (11,217 )     (10,602 )
Interest income
            1,584       1,254       1,568  
Unrealized gain / (loss) on embedded derivative component of the convertible bonds
 
24(iii) and (v)
      1,259       (62 )     2,028  
Net foreign currency exchange gains
            1,113       144       2,760  
Net finance costs
            (5,285 )     (9,881 )     (4,246 )
Investment income
            168       235       154  
Share of profits less losses from associates and joint ventures
            4,152       1,626       2,359  
Earnings before income tax
            104,565       90,642       95,052  
Tax expense
    9       (26,120 )     (23,846 )     (24,763 )
Net income
            78,445       66,796       70,289  
                                 
Attributable to:
                               
Owners of the Company
            73,225       63,879       66,132  
Non-controlling interests
            5,220       2,917       4,157  
Net income
            78,445       66,796       70,289  
                                 
Earnings per share:
                               
 Basic
    11       0.65       0.57       0.57  
Diluted
    11       0.63       0.55       0.53

Tuesday, October 29, 2013
Comments & Business Outlook

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.


Monday, August 26, 2013
Comments & Business Outlook

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.


Thursday, April 25, 2013
Comments & Business Outlook

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.

Monday, March 25, 2013
Comments & Business Outlook

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.


Tuesday, February 5, 2013
Deal Flow
Beijing, People’s Republic of China (PRC) — February 4, 2013 — China Petroleum & Chemical Corporation (“Sinopec Corp.” or the “Company”) (HKEX: 386; NYSE: SNP; LSE: SNP; CH: 600028) has entered into an agreement today with a placing agent to offer by way of placing an aggregate of 2,845,234,000 new H Shares (the “Placing Shares”) at a price of HKD8.45 per H Share. The Placing Shares represent approximately 3.2% of the number of total issued shares as enlarged after the placing, and approximately 14.5% of the number of H Shares as enlarged after the placing, of Sinopec Corp. Assuming the placing of all Placing Shares, the aggregate net proceeds from the placing are expected to be approximately HK$23,970,100,618. Sinopec Corp. intends to use such net proceeds for general corporate purposes. The completion is expected to take place on or about February 14, 2013. An application will be made by Sinopec Corp. to the Stock Exchange of Hong Kong Limited for the listing of, and permission to deal in, the Placing Shares. As the completion of the placing is subject to the satisfaction of certain conditions precedent and the placing agent's termination rights, the placing may or may not proceed.
 
The Placing Shares will be offered in the United States only to qualified institutional buyers in reliance on an applicable exemption from registration under the U.S. Securities Act of 1933 (as amended) (the "Securities Act") and outside the United States in reliance on Regulation S under the Securities Act.

Monday, October 29, 2012
Comments & Business Outlook

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.


Thursday, October 27, 2011
Comments & Business Outlook

Third Quarter 2011 Results

  • In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), in the first three quarters of 2011, the Company's operating income was RMB1,875.1 billion, up 31.3% from the same period in 2010. Net profit attributable to equity holders of the company was RMB59.96 billion and basic earnings per share was RMB0.692, both up 6.3% over the same period of last year.
  • In accordance with the International Financial Reporting Standards (IFRS), in the first three quarters of 2011, the Company's turnover, other operating revenues and other income amounted to RMB1,875.1 billion, up 31.3% from the same period in 2010. Net profit attributable to equity holders of the Company and basic earnings per share were RMB61.4 billion and RMB0.708 respectively, both up 8.8% over the same period of last year.

In the first three quarters of 2011, the Chinese economy continued to grow rapidly, domestic demand for refined oil and chemical products grew steadily. Sinopec has implemented resources, marketing, integration, internationalization, differentiation and low-carbon strategies, achieving continuous growth of production and operation. The exploration and production segment has increased domestic oil and gas output; the oil refining segment has been at high utilization rate to increase refined oil output; the marketing segment has raised the total volume of distribution; the volume of production and sales of chemical products have increased steadily. In the first three quarters, the Company has witnessed a steady improvement of the overall performance by leveraging advantages of the integration of upstream, mid-stream and downstream businesses, and overcoming the impact of refining loss caused by the controlled domestic price of oil products.


Monday, August 29, 2011
Comments & Business Outlook

Financial Highlights for first half 2011

  • In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), in the first half of 2011, the Company's operating income was RMB 1,216.9 billion, up 31.7% from the same period in 2010. Net profit attributable to equity holders of the company was RMB 40.2 billion and basic earnings per share was RMB 0.464, both up 9.4% over the same period of last year.
  • In accordance with the International Financial Reporting Standards (IFRS), in the first half of 2011, the Company's turnover, other operating revenues and other income amounted to RMB 1,233.3 billion, up 31.5% from the same period in 2010. Net profit attributable to equity holders of the Company and basic earnings per share were RMB 41.2 billion and RMB 0.475 respectively, both up 11.9% over the same period of last year.
  • The Board of Directors declared a half year dividend of RMB 0.10 per share, a year-on-year increase of 25%.
  • Diluted earnings per share for first half 2011 $0.07 vs $0.06 in 2010

Mr. Fu Chengyu, Chairman of Sinopec commented, "Over a decade of development, Sinopec has increased the scale of its operations, enhanced its asset quality, improved its profitability, its risk aversion and its international operating capability. Sinopec has become a leading global, fully integrated energy and chemical company. In the first half of 2011, Sinopec further leveraged its fully integrated business model, continued to make operational improvements and demonstrated overall good operational performance.

He continued, "Looking forward, with the dedication of our management team and staff, we aim to become a first-class global energy and chemical company. We will spare no effort to carry out our strategies, which are centered around six areas: resourcing, marketing, integration of business segments, internationalization, differentiation and development of green and low-carbon energy. We will also closely monitor macro economic developments and will provide a timely response to any arising challenges."

"I am confident that, with the diligence and hard work of our team, we will be able to make Sinopec a truly first-class global company and provide greater value and returns to our shareholders."


Monday, August 1, 2011
Comments & Business Outlook

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.


Saturday, June 25, 2011
Liquidity Requirements

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.


Tuesday, April 12, 2011
Comments & Business Outlook
CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2008, 2009 AND 2010
(Amounts in millions, except per share data)

         
Years ended December 31,
 
   
Note
   
2008
   
2009
   
2010
 
         
RMB
   
RMB
   
RMB
 
Operating revenues
                       
Sales of goods
          1,413,203       1,315,915       1,876,758  
Other operating revenues
    3       31,088       29,137       36,424  
              1,444,291       1,345,052       1,913,182  
                                 
Other income
    4       50,857              
                                 
Operating expenses
                               
Purchased crude oil, products and operating supplies and expenses
            (1,270,586 )     (980,564 )     (1,482,484 )
Selling, general and administrative expenses
    5       (39,420 )     (40,539 )     (51,048 )
Depreciation, depletion and amortization
            (49,541 )     (54,016 )     (59,223 )
Exploration expenses, including dry holes
            (8,310 )     (10,545 )     (10,955 )
Personnel expenses
    6       (23,408 )     (28,895 )     (33,672 )
Taxes other than income tax
    7       (57,214 )     (132,884 )     (157,189 )
Other operating expenses, net
    8       (8,088 )     (6,910 )     (13,607 )
Total operating expenses
            (1,456,567 )     (1,254,353 )     (1,808,178 )
Operating income
            38,581       90,699       105,004  
                                 
Finance costs
                               
Interest expense
    9       (12,842 )     (7,609 )     (7,972 )
Interest income
            466       277       660  
Unrealized gain / (loss) on embedded derivative component of the Convertible Bonds
    24(c)       3,947       (218 )     (127 )
Foreign currency exchange losses
            (958 )     (345 )     (609 )
Foreign currency exchange gains
            3,278       429       1,074  
Net finance costs
            (6,109 )     (7,466 )     (6,974 )
Investment income
            390       374       273  
Income from associates and jointly controlled entities
            580       2,997       5,390  
Earnings before income tax
            33,442       86,604       103,693  
Tax expense
    10       (3,624 )     (19,599 )     (25,689 )
Net income
            29,818       67,005       78,004  
                                 
Attributable to:
                               
Equity shareholders of the Company
            31,199       63,147       71,800  
Non-controlling interests
            (1,381 )     3,858       6,204  
Net income
            29,818       67,005       78,004  
                                 
Earnings per share:
                               
Basic
    12       0.36       0.73       0.83  
Diluted
    12       0.32       0.72       0.82

Monday, March 28, 2011
Comments & Business Outlook

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. 


Sunday, March 29, 2009
Comments & Business Outlook
Looking into 2009, the persistent and widespread international financial crisis has exerted significant influence on domestic and global oil and chemical markets. Influenced by falling demand, the international oil prices are expected to fluctuate at a relatively low level for a certain period. The demand growth for refined oil products in the domestic market is expected to slow down. Due to the combined pressure of slower economic growth and a downward cyclical trend, the chemicals business will be facing more challenging situations.

Saturday, January 31, 2009
Comments & Business Outlook

Guidance Report:

 According to the preliminary calculations of the Financial Department of China Petroleum & Chemical Corporation, the net profit for the year 2008 will decrease by more than 50% compared to the corresponding period of previous year.
 
During the first half of 2008, the international crude oil prices had been continuously climbing. Due to the strict control over refined oil prices in the People’s Republic of China (the “PRC”), a distortion to the correlation of the refined oil prices and crude oil prices occurred. The Company has taken various measures to guarantee the supply for the refined oil market in the PRC, which resulted in great losses in the oil-refinery business. Moreover, in the second half of 2008, the price of and the demand for the chemical products declined significantly. A massive decline occurred in overall results of the Company in the year 2008 compared to the corresponding period of previous year.
 
The specific data will be disclosed in detail in the annual report of 2008. Investors are advised to exercise caution in dealing in the shares of the Company.
 
Source: SEC Filing 6K (January 23, 2009)
 
 
The GeoTeam® was able to locate these statements in a recent 8k filing, but was unable to locate a related press release.