e Aug. 27, 2012 Hong Kong

Transcription

1 China Petroleum & Chemical Corporation 2012 Interim Results Announcement e Aug. 27, 2012 Hong Kong

2 Management of Sinopec Mr. FU Chengyu Chairman Mr. WANG Tianpu Vice Chairman & President Mr. WANG Xinhua Chief Financial Officer Mr. HUANG Wensheng Secretary of the Board of Directors

3 Cautionary Statementt t This presentation and the presentation materials distributedib d herein include 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, 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 price fluctuations, actual demand, exchange rate fluctuations, exploration and development outcomes, estimates of proven reserves, market shares, competition, environmental risks, changes in legal, financial and regulatory frameworks, international economic and financial market conditions, political risks, project delay, project approval, cost estimates and other risks and factors beyond our control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements

4 Agenda 1H12 Performance Highlights 1H12 Operational Results 2H12 Operational Plan

5 1H12 Performance Highlights g

6 1H12 Market Environment Global economy remains sluggish China s economic growth slows down, with a GDP growth of 7.8% International crude oil prices witnessed sharp increase and then decrease Domestic oil product prices adjusted d more frequently, but not fully reflect the cost of crude Intense competition in chemicals market and chemical prices dropped substantially YoY 25% Growth rate of oil and chemical product consumption in China 20% 20.4% 19.0% 15% 10% 5% 8.0% 4.8% 11.1% 7.3% 59% 5.9% 11.1% 9.7% 9.9% 10.7% 11.4% 9.1% 8.0% 8.6% 9.5% 7.8% 6.1% 7.2% 6.8% 5.8% 5.1% 4.7% 4.3% 10.2% 9.0% 8.7% 8.0% 11.4% 11.8% 10.3% 9.2% 4.9% 4.5% 7.8% 40% 4.0% 3.0% 0% -0.3% 0.9% -5% H12 GDP Refined oil product Ethylene equivalent

7 Operating Summary Focus on Resources and Market Oil and Gas Production mm boe Refinery Throughout* mm tonnes H11 1H12 1H11 1H12 Total Sales Volume of Oil Products mm tonnes Ethylene Production* '000 tonnes 5,015 4,810 1H11 1H12 1H11 1H Note: *100% of production of joint ventures included 7

8 Profitability Turnover and other operating income: RMB 1,348.1 billion Net profit: RMB 24.5 billion Basic EPS: RMB per share Operating Profit Change RMB million 58,439 5,812 (6,332) 654 (17,595) (895) 40,083 1H2011 E&P Refining Marketing Chemicals Others 1H

9 Dividendid d The Board of Directors proposed an interim dividend of 0.1 RMB per share Dividend payout ratio of 35.5% The Board of Directors proposed to maintain not less than 30% payout ratio RMB/share Dividend declared and Payout Ratio 24.7% 25.4% 35.5% 35.5% H2012 final dividend Interim dividend Dividend payout ratio

10 Cash flow and shareholder h equity RMB million 1H2011 1H2012 Net cash generated from operating activities 30,570 20,332 Net cash used in investing activities (55,030) (79,659) Net cash generated from financing activities 16,130 47,242 RMB million As of 31 Dec As of 30 Jun Short-term debt 68,224 81,017 Long-term debt 116, ,815 Total equity attributable to shareholders of the Company 472, ,398 Total debt/ total asset (%)

11 Capital Expenditure 1H12 Capex: RMB 51.5 billion RMB billion E&P Refining Marketing Chemicals Corporate & others E&P-RMB 21.8 billion: Shengli Tanhai oil field, Northwest Tahe oil field, Erdos oil and gas field, Sichuan Basin natural gas exploration and Shandong LNG projects Refining-RMB 10.4 billion: Diesel quality upgrading, refineries renovation in Shanghai Petrochemical and Jinling Marketing- RMB 12.4 billion: Construction and acquisition of service stations, oil depots, oil output transfer networks, construction of the supporting facilities for non-oil business and gas card and other value added businesses, as well as development of 704 service stations Chemicals RMB 6.3 billion: Wuhan ethylene project with annual production of 800,000 tons, Yanshan butyl rubber, Yihua 1,4-Butanediol projects Corporate & others RMB 0.5 billion

12 Cost Control Strengthen target cost management Expand financing channels to reduce capital costs Strengthen centralized procurement and storage management 95% 9.5% 8.7% 6.6% 6.9% 5.7% 3.7% Lifting cost Refining Operating Cost Marketing Operating Cost 2011 yoy increase 1H12 yoy increase

13 Energy Saving and Emission i Reduction Social Responsibility Management Committee has been set up under the Board Implement green and low carbon development strategy t Implement HSE management system and strengthen performance evaluation Enhance technological innovation and promote EMC Promote energy saving and emission reduction Energy intensity declined by 2.0% COD in externally discharges waste water reduced by 4.1% SO 2 emission declined by 3.3%

14 1H12 Operational Results

15 Progress in Exploration & Production New discoveries of crude oil in key regions such as Tarim basin, Ordos basin, Jungar basin and Shengli oil field New discoveries of natural gas in key regions such as Sichuan basin and Ordos basin

16 E&P Operating Summary 1H2011 1H2012 YoY Change Oil and gas production (mm boe) % Crude oil production (mm bbls) % China (mm bbls) % Overseas (mm bbls) % Natural gas production (bcf) % Lifting cost (USD/bbl) %* * Up 6.6% excluding exchange rate effects

17 E&P Segment Performance Realized Price of Crude Oil USD/bbl Operating Profit of E&P Segment RMB milion 40,463 1H11 1H12 34,651 Realized Price of Natural Gas USD/'000 cubic feet H11 1H12 1H11 1H

18 Refining i Operating Summary (mm tonnes) 1H2011 1H2012 YoY Change Refinery throughput % Gasoline, diesel and kerosene production % Gasoline production % Diesel production % Kerosene production % Light chemical feedstock production (0.2%) Light yield (%) bps Refining yield (%) bps Note: 1. Refinery throughput is converted at 1 ton=7.35 bbls; % production of joint ventures included d

19 Refining i Segment Performance USD/bbl 1.56 Refining Margin RMB million Operating loss of Refining Segment H11 1H12 Cash operating cost RMB/tonne (12,169) (18,501) 1H H H11 1H

20 Marketing Operating Summary (mm tonnes) 1H2011 1H2012 YoY Change Total sales of refined oil products % Domestic sales of refined oil products % 2.6% Retail % Direct sales (1.3%) Wholesales (9.0%) Annualized average throughput of company-operated stations (tonnes/station) 3, ,489 44% 4.4% As of 31 Dec. As of 30 Jun Change Total number of domestic service stations 30,121 30, % Incl. Company-operated stations 30,106 30, %

21 Marketing Segment Performance Revenue from 销售板块经营收益 Non-fuel Business RMB million Operating 销售板块经营收益 Profit of Marketing RMB million Segment 5,460 19,598 20,252 3,980 1H11 1H12 1H11 1H

22 Chemicals Operating Summary '000 tonnes 1H2011 1H2012 YoY Change Ethylene 5,015 4,810 (4.1%) Synthetic resins 6,834 6,701 (2.0%) Synthetic fiber monomers & polymers 4,744 4,580 (3.5%) Synthetic fibers (4.4%) Synthetic rubbers (9.5%) Note: 100% production of joint ventures included

23 Chemicals Segment Performance 300 Chemical Products Price Index (CPPI) RMB million ,344 Operating Profit of Chemical Segment (1,251) Index Difference CPPI Naphtha Price Index 1H11 1H

24 2H12 Operational Plan

25 Market Outlook for 2H12 The Chinese economy is expected to recover and continue to grow The international oil price is expected to fluctuate at a high level It is expected that the demand on domestic refined oil products and chemical products will gradually rebound Domestic oil product price is respected to be adjusted more timely

26 2H Operational Plan 2H2012 E 1H2012 A 2012 E YoY Change for Full-year Estimate Crude oil production (mm bbls) % Natural gas production (bcf) % Refinery throughput (mm tonnes) % Domestic sales of refined oil products (mm tonnes) % Ethylene production ( 000 tonnes) 4,630 4,810 9,440 (4.6%)

27 Questions & Answers Investor Relations Beijing: Tel: (8610) Fax: (8610) Hong Kong: Tel: (852) Fax: (852) New York: Tel: (212) Fax: (212) p