29 April 2009
China Petroleum & Chemical CorporationQ1 2009 Results Announcement
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DisclaimerAs required by the CSRC, financial statements of the first quarter of Sinopec
Corp. (the “Company”) were prepared under PRC Accounting Rules and Regulations. The Company has adjusted part of the financial data in accordance with the International Financial Reporting Standards hereby for the reference of international investors. Financial data of the first quarter contained in the presentation and presentation materials are unaudited.
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, 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, 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.
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Market Environment in Q1 2009
China’s GDP grew by 6.1% in the first quarter
International crude oil price fluctuated at relatively low level
New oil product pricing mechanism improved refining business environment
Influenced by financial crisis, oil product and chemical demand declined compared with Q1 2008
Domestic demand for oil and petrochemical products increased month by month thanks to the government’s stimulus plans
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Financial Performance
RMB million Q1 2008 Q1 2009 Change %
Turnover, other revenues and other income
339,284 228,585 (32.6)
EBITDA 14,374 28,489 98.2
EBIT 3,031 16,494 444.2
Net profit attributable to shareholders of the company
6,062 11,219 85.1
EPS (RMB) 0.070 0.129 85.1
EBIT of Each SegmentRMB million
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Financial Position
RMB million 31 Dec 2008 31 Mar 2009
Short-term debts 74,896 56,311
Long-term debts 90,254 98,056
Equity attributable to shareholders of the company 328,669 340,154
RMB million Q1 2009
Net cash flow from operating activities 53,248
Net cash flow from investing activities (17,495)
Net cash flow from financing activities (31,449)
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Note: 1 tonne=7.1 barrels, 1 cubic meter=35.31 cubic feet
E&P—Operational Summary & Performance
Q1 2008 Q1 2009 Change %
Crude oil production (mm bbls) 73.36 73.81 0.6
Natural gas production (bcf) 72.63 69.98 (3.6)
Realized price of crude oil (RMB/tonne) 3,943.01 1,599.01 (59. 4)
Realized price of natural gas (RMB/thousand cubic meter)
916.79 961.53 4.9
Lift cost (RMB/tonne) 601.70 604.79 0.5
EBIT ( RMB million) 11,540 2,756 (76.1)
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Refining—Operational Summary
Q1 2008 Q1 2009 Change %
Refinery throughput (mm tonnes) 41.89 40.51 (3.3)
Gasoline production (mm tonnes) 6.93 7.99 15.3
Diesel production (mm tonnes) 16.61 15.15 (8.8)
Kerosene incl. jet fuel production (mm tonnes) 2.00 2.18 9.0
Light chemical feedstock production (mm tonnes) 6.29 5.76 (8.4)
Light stream yield(%) 74.45 74.98 53 bps
Refining yield(%) 93.81 93.69 (12) bps
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Refining marginRMB/tonne
Refining Margin / Cash Operating Cost
RMB million
EBIT of Refining Segment
Cash operating costRMB/tonne
Refining—Performance
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Marketing—Operational Summary
Q1 2008 Q1 2009 Change %
Domestic sales of refined oil products(mm tonnes) 30.18 26.43 (12.4)
Incl. Retail (mm tonnes) 20.28 17.37 (14.3)
Distribution (mm tonnes) 4.89 5.05 3.3
Wholesale (mm tonnes) 5.01 4.01 (20.0)
Total number of service stations (unit) 29,130 29,338 0.7
Incl. Company-operated 28,477 28,703 0.8
Franchised 653 635 (2.8)
Annualized average pump volume per station (tonnes) 2,848 2,420 (15.0)
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EBIT of Marketing Segment
RMB million
Marketing—Performance
Date of adjustment
RON 90# Gasoline(RMB/tonne)
0# Disel(RMB/tonne)
19 Dec 2008 6380 5770
15 Jan 2009 6240 5610
25 Mar 2009 6530 5790
Maximum Retail Price Adjustment
RMB/tonne Q1 2008 Q1 2009
Marketing cash operating cost 148.3 162.6
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Chemicals—Operational Summary
thousand tonnes Q1 2008 Q1 2009 Change %
Ethylene 1,695 1,488 (12.2)
Synthetic resins 2,482 2,400 (3.3)
Synthetic rubbers 226 198 (12.4)
Monomers & Polymers for synthetic fibers
1,994 1,723 (13.6)
Synthetic fibers 355 315 (11.3)
Urea 283 362 27.9
Note: Includes 100% production from BASF-YPC and Shanghai-Secco
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EBIT of Chemicals SegmentRMB million
Chemicals—Performance
Chemical Price Spread (2002-2009.4)USD/tonne
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Capital Expenditure
Total Capex in Q1 2009: RMB 15.28bnRMB billion E&P: RMB 7.78 billion. Sichuan-East
China Gas Project approached completion
Refining: RMB 1.57 billion. Mainly used in upgrading of refineries
Chemical: RMB4.64 billion. Mainly used for major ethylene projects
Marketing: RMB 0.99 billion. Construction of service stations and pipeline in key areas
Corporate and others: RMB 0.30 billion
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http://www.sinopec.com
For Further Information
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Email: [email protected]
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