China Petroleum & Chemical Corporation. March 26, 2012 Hong Kong

Transcription

1 China Petroleum & Chemical Corporation 2011 Annual Results Announcement March 26, 2012 Hong Kong

2 Disclaimer i This presentation and the presentation materials distributed 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, reserves and other estimates and business plans) are forwardlooking 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

3 Agenda Performance Highlights Operational Results by Segment 2012 Operational Plan

4 Performance Highlights

5 Market Environment China maintained steady economic development with GDP growth rate of 92% 9.2% Domestic demand for refined oil and chemical products kept growing Domestic apparent consumption of refined oil products grew by 4.5% Domestic apparent consumption of ethylene equivalent grew by 4.9% International oil price surged in Q1 and remained high and volatile Tight control over refined oil price due to huge inflation pressure in China Nation-wide resource tax reform on gas and oil adopted Threshold for special income levy adjusted Pilot program for the reform of natural gas pricing mechanism announced Growth rate of oil and chemical product Max. domestic retail price of oil consumption in China product vs Dubai crude price 25% RMB/tonne USD/bbl 20% 15% 10% 5% 0% -5% GDP Refined oil Product Ethylene equivalent 12,000 11,000 10, ,000 8,000 RON 90# Gasoline 7,000 0# diesel 6,000 Dubai Crude (RH) 5,

6 Financial i Highlights ht Record revenue with a 31% increase yoy Record net profit with a 2% increase yoy Total capex of RMB bn Strong operating cash flow of RMB bn Full-year dividend of RMB 0.30 per share with a payout ratio of 35.5% Revenue Dividend per share RMB billion 1, ,505.7 RMB

7 Operating Summary Focus on Resources and Market mmboe Oil and Gas Production mm tonnes Refinery Throughput* Total Sales volume of Oil Products Ethylene Production* mm tonnes tonnes 6,713 9,059 9, * 100% production of joint ventures included 6

8 Profitability Significant growth in revenue and other operating income Net profit increased 2% to RMB 73.2 billion despite of price control on oil product Record revenue and profit achieved Revenue and Other Operating Income RMB billion 2, ,913.2 RMB Earnings per Share ,

9 Dividendid d Full-year dividend of RMB 0.30 per share, up by 42.9% yoy Dividend payout ratio of 35.5%, up by 10.1 percentage points yoy Dividend yield exceeded 4.5% DPS and Dividend id d Payout Ratio Dividend id d Yield* RMB/Share 35.5% 4.53% 24.7% 25.4% 2.96% 3.33% Interim Year-end Payout ratio * Based on the closing price of H-share at year-end

10 Sources and Uses of Cash RMB MM Net cash generated from operating activities 165, , ,622 Net cash used in investing activities iti (117,355) (105,788) (140,449) 449) Net cash used in financing activities (46,411) (56,294) (2,516) Cash and cash equivalent at year-endend 8,782 17,008 24,647 RMB billion 22.9 Sources and Uses of Cash Cash as of Cash from 2010 year-endend operating activities Issuance of convertible bond Cash from investing activities Cash paid for Other financing Cash as of dividends activities 2011 year-endend

11 Financial i Position Return on Capital Employed EBITDA-to-Interest Coverage 11.67% 12.95% 11.49%

12 Capital Expenditure 2011 Capex: RMB billion More emphasis on investment in E&P and Marketing RMB billion Plan 2011 Corporate & Others Chemicals Marketing Refining E&P E&P RMB 58.8 billion Shengli shallow water oil field, Northwest Tahe oil field and Northeast Sichuan natural gas exploration and Shandong LNG projects Refining RMB 25.8 billion Completion of Beihai Refinery, upgrading of Shanghai and Jinling refinery, and Rizhao- Yizheng crude oil pipeline projects Marketing RMB 28.5 billion Construction ti of service stations, ti oil depots, oil output transfer networks along highways, in major cities and newly-planned regions Chemicals RMB 15.0 billion Wuhan ethylene project, Zhongyuan MTO project Corporate & others RMB 2.1 billion

13 Safety Production, Energy Conservation and Emission i Reduction Implement green and low carbon strategy and HSE management system Strengthen energy saving and emission reduction and transform growth pattern. Realize the following targets while expanding business scale: Energy intensity declined 0.7% Water consumption for industrial use decreased 2.0% COD in externally discharges waste water reduced by 16.9% SO 2 emission declined 9.8% Over 95% of industrial water recycled

14 Operational Results by Segment

15 E&P Operating Summary Yoy Change Oil and gas production (mm boe) % Crude oil production (mm bbls) (1.9%) Incl. China % Overseas (28.5%) Natural gas production (bcf) % Lifting cost (USD/bbl) %* * Up 9.5% excluding exchange rate effects As of Dec. 31, 2009 As of Dec. 31, 2010 As of Dec. 31, 2011 yoy Change Proven reserves of oil and gas (mm boe) 4,043 3,963 3, % Proven reserves of crude oil (mm bbls) 2,920 2,888 2,848 (1.4%) Proven reserves of natural gas (bcf) 6,739 6,447 6, % % production and reserves of SSI included ton=7.1 barrels for crude oil production in China, 1 m 3 =35.31 c.f. for natural gas production in China, 1 ton=7.27 barrels for overseas crude oil production 14

16 E&P Segment Performance Realized Price of Crude Oil USD/bbl RMB million Operating Profit of E&P Segment 71,631 47,149 Realized Price of Natural Gas USD/'000 cubic feet ,

17 Refining i Operating Summary yoy Change Refinery throughput ( 000 bbls/day) 3,757 4,252 4, % Gasoline, diesel and kerosene production (mm tonnes) % Incl. Gasoline production (mm tonnes) % Diesel production (mm tonnes) % Kerosene production (mm tonnes) % Light chemical feedstock production (mm tonnes) % Light yield (%) bps Refining yield (%) bps Note: 1. refinery throughput is calculated based on 1 ton = 7.35 bbls; % production of joint ventures included

18 Refining i Segment Performance Refining Margin USD/bbl Operating Profit of Refining Segment RMB million 27, ,851 USD/bbl Operating Cost (35,780) * Up 6.9% excluding exchange rate effects

19 Marketing Operating Summary (mm tonnes) yoy Change Total sales of refined oil products % Domestic sales of refined oil products % Incl. Retail % Distribution % Wholesales (13.5%) Annualized average throughput of selfoperated stations (tonnes/station) 2,715 2,960 3, % As of Dec. As of Dec. As of Dec. yoy 31, , , 2011 Change Total number of domestic service stations 29,698 30,116 30, % Incl. Company-operated operated stations 29,055 29,601 30, %

20 Marketing Segment Performance Revenue 销售板块经营收益 from Non-fuel Business Operating Profit of Marketing Segment RMB million 8,260 RMB million 44,696 5,720 30,300 30,760 3,

21 Chemicals Operating Summary 000 tonnes yoy Change Ethylene 6,713 9,059 9, % Synthetic resins 10,287 12,949 13, % Monomers & polymers for synthetic fibers 7,798 8,864 9, % Synthetic fibers 1,302 1,393 1,388 (0.4%) Synthetic rubbers % 100% production of joint ventures included

22 Chemicals Segment Performance Chemical Products Price Index (CPPI) RMB million Operating Profit of Chemical Segment 26, ,779 15, Source: Sinopec 指数差 CPPI 石脑油价格指数 Index Difference Naphtha Price Index

23 2012 Operational Plan

24 Market Outlook for 2012 Recovery of the world economy is expected to be arduous Uncertainty in European and US economy recovery Slowdown in economic growth of emerging markets esp. China High uncertainty in the world economy and political landscape, especially during a year of elections Affected by geopolitical and other factors, the international oil price is expected to remain at a high level Demand for oil and chemical products is expected to grow at a slower pace

25 2012 Capex Plan E&P 2012 Capex Plan billion E&P Exploration and production capacity building focusing in oil fields of Shengli, Tahe, south of Erdos and gas fields of Yuanba and Erdos Refining Retrofit of the oil refining facilities of Sinopec Shanghai and Jinling Huangdao-Dongjiakou-Lanshan crude oil pipelines and other ancillary facilities RMB billion Marketing Construction and acquisition of high 36.8 quality service stations Construction of oil product pipelines and storage facilities E&P Chemicals Marketing Wuhan ethylene and Hainan aromatics Corporate & Others projects 78.2 Refining Chemicals

26 2012 Production Estimates t Oil and Gas Production Crude Oil Production Natural Gas Prodcuction mm boe mm bbls bcf E E E Refinery Throughput* Total Domestic Sales of Ethylene Production* Refined Oil Products mm tonnes mm tonnes 000 tonnes ,894 9, E E E * 100% production of joint ventures included 25

27 For Further Information Investor Relations Beijing: Tel: (8610) Fax: (8610) Hong Kong: Tel: (852) Fax: (852) New York: Tel: (212) Fax: (212) Media Relations Tel: (8610) Fax: (8610)