Post on 31-Jul-2020
transcript
2019 Interim Results
SINOPECSHANGHAI PETROCHEMICAL COMPANY LIMITED
CONTENT
04 Future Outlook
03 Capital Expenditure
02 Business Review
01 Financial Highlights
01
Financial Highlights
1
Financial Highlights
1H 2019 1H 2018 Change
Revenue 51,955 52,162 -0.40%
Gross Profit 900 3,935 -77.13%
Profit Before Taxation 1,366 4,542 -69.93%
Net Profit Attributable to
Equity Shareholders1,144 3,551 -67.78%
EPS (RMB) 0.106 0.328 -67.68%
RMB Million
Prepared under IFRS
2
June 30, 2019 June 30, 2018 Change
Total Assets 43,839 45,623 -3.91%
Total Liabilities 14,936 16,766 -10.91%
Equity Attributable to Owners
of the Company28,780 28,569 0.74%
Net Asset Value
Per Share (RMB) Attributable
to Equity Shareholders
2.659 2.639 0.76%
Liabilities/Total Assets 34.07% 36.75% -2.68pt.
RMB Million
Prepared under IFRS
Financial Highlights
3
02
Business Review
4
The downward stress upon the domestic petrochemical industryintensified. Investment in this industry grow fast, but thesimultaneous commissioning of new capacity in short term and thetriggered market expectations have caused significant fluctuation anddecrease in product prices. The decline trend in corporate profit didnot fundamentally improve.
The Industry
China’s Economy
World Economy
MACRO-
ENVIRONMENT
Business Review
In the first half of 2019, the world economic situation remainedcomplex and severe. International trade frictions and geopoliticaltensions intensified. World economic growth and international tradeall slowed down.
The downward pressure on Chinese economy has increased. Underthe impetus of adhering to high-quality development and supply-sidestructural reforms, economic operations continued to remain within areasonable range. GDP increased by 6.3% year-on-year.
5
Further strengthened
management and
advanced corporate
reform
Company
Operations
Continued to deepen the
optimization of production and
operation and strengthened
market development and costs
reduction
Continued to develop
company and promoted
technological innovation
Adhere to the bottom line of
safety and environmental
protection and ensure smooth
operation of the plants
Business Review
6
Dubai USD/Barrel
International crude oil price
(RMB/Ton)
7.88%
Business Review
1H2018 1H2019
3309.34
3067.71
Cost of crude oil processed
50
60
70
80
90
2018/8 2018/11 2019/2 2019/5 2019/8
7
Business Review
Sources of Crude Oil1H 2019 1H 2018
Middle East83.09%
Latin America 14.12%
U.S.A. 1.39%
Northern Europe 1.11%
China0.29%
Middle East Latin
America
Russia U.S.A. Northern
Europe
China
1H 2019 80.37% 14.94% 3.85% - - 0.84%
1H 2018 83.09% 14.12 % - 1.39% 1.11% 0.29%
Middle East80.37%
Latin America14.94%
Russia3.85% China 0.84%
8
Business Review
Price Movements in Asia Market
400.00
500.00
600.00
700.00
800.00
900.00
1000.00
1100.00
1200.00
1300.00
1400.00
USD/Ton Ethylene Benzene EG PX PE PP
800.00
1200.00
1600.00
2000.00
2400.00
2800.00
3200.00
3600.00
USD/Ton Polyester staple Acrylic staple
9
Domestic Demand Growth
Business Review
10,000.0
50,000.0
90,000.0
130,000.0
170,000.0
1H2018 1H2019
55,399
29,288
Petroleum Products Intermediate
Petrochemicals
159,430159,280
16,72715,270
’000Ton
32,340
63,019
10
Changes in Refined Oil Products Output
Business Review
0
500
1,000
1,500
2,000
Diesel Gasoline Jet fuel LPG
1H2018 1H20191,947
1,631
925
463
’000Ton
1,851
1,688
739
456
11
Changes in Major Chemicals Output
Business Review
0
50
100
150
200
250
300
350
400
450
Ethylene Benzene PX EG PE PP Acrylic Fiber
1H2018 1H2019402
178
330
246 268
231
75
422
169
330
157
227247
62
12
4.57%3.52%
6.58%8.13%
2.94% 2.38%
24.51%
4.16%3.32%
5.29%4.04%
3.07%2.12%
0%
5%
10%
15%
20%
25%
Ethylene Benzene PX EG PE PP Acrylic Fiber
1H2018 1H2019
26.45%
Domestic Output Shares of the Chemicals
Business Review
13
Changes in Sales Volumes
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Petroleum Products Intermediate Petrochemicals
Resins & Plastics Synthetic Fibers Total
1H2018 1H2019
4,967
1,111
5,086
1,077634
94
6,891’000 Ton
Business Review
598
83
6,759
14
Changes in Average Product Prices
-20%
-10%
0%
10%
20%
Petroleum Products Intermediate Petrochemicals
Resins & Plastics Synthetic Fibers Average
1H2018 1H2019
-3.68%-0.63%
15.22%
2.98%
-13.00%
8.28%
-7.06%
18.24%
-5.08%
9.13%
Business Review
15
Business Review
Net Sales Structure1H 2018
1H 2019
Synthetic
Fibers
2.60%
Resins &
Plastics
10.96%
Refined Oil
Products
45.54%
Trading and
Others
29.70%
V S
Synthetic
Fibers
2.44%
Resins &
Plastics
11.14%
Refined Oil
Products
44.83%
Trading and
Others
28.30%
IntermediatePetrochemicals
11.20%Intermediate
Petrochemicals
13.29%
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Changes in Operating Profit Margin
-30%
-20%
-10%
0%
10%
20%
30%
PetroleumProducts
IntermediatePetrochemicals
Resins &Plastics
SyntheticFibers
Trading Others Average
1H2018 1H2019
0.31%0.42%
8.42%6.40%
16.02%
12.03%
6.48%
-21.34%-18.21%
-9.11%
0.84%
13.78%
1.26%
7.07%
Business Review
17
Business Review
Changes in Operating Profit
(500)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Petroleum Products
Intermediate Petrochemicals
Resins & Plastics Synthetic Fibers Trading Others Total
1H2018 1H2019
106.69111.12
2,229.60
1,001.37
336.55628.96
332.72
-244.90 -222.08
55.5240.76
-36.08
654.59
3,685.63
RMB Million
18
03
Capital Expenditure
19
Capital Expenditure
In 1H2019, the Group’s capital expenditure
is RMB 350 million.
• Oil cleaning project 400,000 ton/year clean
gasoline components units.
• Second phase of PAN-based carbon fiber project
with annual production capacity of 1,500 tons.
• Light oil storage tank and trestle oil vapor
recovery project of the Storage and
Transportation Division.
• Safe and eco-friendly airtight decoking,
transportation and waste gas control project of
No. 2 delay coking facility.
• Low nitrogen combustion reform project of No. 2
olefin cracking furnace.
• Oil cleaning project 400,000 ton/year clean gasoline components units.
• Second phase of PAN-based carbon fiber project with annual production capacity of 1,500 tons.
• Separation of waste and clear water project in tank area of Storage and Transportation Division.
• Drying and reduction of oil sludge project of Environmental protection and Water Division.
• Function reconstruction of emergency shut-off valve project in the tank area of Storage and Transportation Department
• Factory facilities reconstruction of low-sulfur heavy bunker fuel of Storage and Transportation Department
Expenditure in 2H 2019
20
04
Future Outlook
21
Future Outlook
Macro-environment Outlook for 2H 2019
World
The uncertainties of world economy is constantly increasing with the global trade tensions
intensifying. Monetary policies turn eased globally. It is expected that the world economic
growth will further slow down.
China The downward pressure of China's economy further increases, but the resilience of
economic growth remains strong. It is estimated that the domestic economic growth
will remain in a reasonable range in the second half of the year.
Industry
The launch of a series of new environmental protection policies renders the domestic
petrochemical industry to face costs rise and pressure. With changes in domestic
petrochemical market pattern, petrochemical bulk commodity tend to become
saturated. Demand growth rate for petrochemical products will further slow down, and
market competition grow fiercer. The pressure on international oil price is still expected
to accumulate in the next half year.
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01
02
03
04
Put efforts in safety & environmental
protection and build up a favorable
environment for developmentPay adequate attention to
system optimization and
improve operation and
efficiency
Accelerate reform and optimize
the structure of the workforce.
Promote scientific development
Grasp well the project
construction and product R&D,
accelerate development pace
Business Outlook
Future Outlook
23
SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED
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