Sinopec Announces 2014 Interim Results
Operating Profit Records Double Digit Growth in the First Half of 2014 Marketing Business Restructuring and Shale Gas Development on Track Beijing, People‘s Republic of China (PRC) – 22 August, 2014 – China Petroleum & Chemical Corporation (“Sinopec” or “the Company”) (HKEX：386；CH：600028；NYSE: SNP) announced its interim results for the six months ended 30 June 2014.
In accordance with the International Financial Reporting Standards (IFRS), in the first half of 2014, the Company‘s turnover, other operating revenues and other income was RMB1,356.17 billion, down 4.2% year-on-year. However, the Company still maintained double digit growth in operating profit of RMB52.27 billion, up 11.8% year-on-year. Profit attributable to equity shareholders of the Company was RMB32.54 billion, up 7.5% year-on-year. Basic earnings per share were RMB0.279.
In accordance with the PRC Accounting Standards for Business Enterprises (ASBE),in the first half of 2014, the Company‘s operating profit was RMB44.83 billion, up 2.6% year-on-year. Net profit attributable to equity shareholders of the Company was RMB31.43 billion, up 6.8% year-on-year. Basic earnings per share were RMB0.269.
Net cash flows from operating activities were RMB58.214 billion, up 76.9% year-on-year.
The Board of Directors proposed an interim dividend of RMB0.09 per share.
In the first half of 2014, global economic growth slowed down while China‘s economy maintained moderate growth. Despite slowing growth in demand for refined oil products and tumbling prices for chemical products, the Company achieved a double digit increase in operating profit, thanks to increased production and sales volume of high quality oil products which led to a year-on-year operating profit growth in its refining and marketing
The Company achieved further progress in domestic oil and gas exploration and development. Sinopec maintained its fast-track momentum in the construction of shale gas capacity in Fuling in the Sichuan Basin. By the end of June, daily shale gas production hit 3.2 million cubic meters. As of the end of 2013, the Company had completed its acquisition of overseas upstream assets from China Petrochemical Corporation, which significantly increased Sinopec‘s crude production on a year-on-year basis.
Benefitting from further optimized production structure and increased production of high value-added oil products production such as GB IV & GB V gasoline & diesel production, the refining margin rose 43.4% in the first half of 2014 on a year-on-year basis.
In the first half of 2014, Sinopec carried out the restructuring and reform of its marketing business as planned. The Company established Sinopec Marketing Company Ltd. and completed the auditing and evaluation of its assets, laying the foundation for marketing business reform. Sinopec established Sinopec Easy Joy Sales Co., Ltd. to take another big step in the development of its non-fuel business.
Sinopec significantly increased sales of premium products and recorded 10% growth in non-fuel operating revenues through optimising marketing strategies, expanding retail scale and enhancing integrated service levels for its clients.
Sinopec proactively responded to the severe market conditions for the chemical industry. The Company adjusted the raw material and product structure, optimised the utilisation rate of its facilities, and shut down non-profitable units.
Fu Chengyu, Chairman of Sinopec said: ‘Focusing on improving the quality and efficiency of development in the first half of 2014, Sinopec has accelerated business restructuring,emphasizing market-oriented reform and the specialized development of various business lines. Sinopec is committed to building a people-oriented, world-class energy and chemical company as well as enhancing shareholders‘ long term returns through business transformation and more effective management.’