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Sinopec announces 2014 full year results

Sinopec achieved stable production and operations; Dividend payout ratio exceeded 50%

BEIJING, March 22, 2015 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or "the Company") (HKEX: 386; CH: 600028; NYSE: SNP) today announced its annual results for the year ended 31 December 2014.

China Petroleum & Chemical Corporation logo.

Financial Highlights:

  • In accordance with the International Financial Reporting Standards (IFRS), in 2014, the Company's turnover, other operating revenues and other income was RMB2,825.9 billion, down 1.9% year-on-year, mainly due to the price decline of crude oil and petrochemical products. Operating profit was RMB73.5 billion, down 24.1% year-on-year. Profit attributable to equity shareholders of the Company was RMB 46.5 billion, down 29.7%. Basic earnings per share were RMB0.398.
  • In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), in 2014, the Company's operating income was RMB2,825.9 billion, down 1.9% year-on-year. Operating profit was RMB65.5 billion, down 32.1%. Net profit attributable to equity shareholders of the Company was RMB47.4 billion, down 29.4% year-on-year. Basic earnings per share were RMB0.406.
  • The Board of Directors proposed a final cash dividend of RMB0.11 per share. Combined with the interim dividend of RMB0.09 per share, the total annual cash dividend for 2014 is RMB0.20 per share. The Company has gradually increased its dividend payout ratio in recent years, with dividend payout ratio reaching over 50% in 2014 (by IFRS). Total cash dividend paid for the full year was RMB23.8 billion.

Operations Highlights:

In 2014, the global economic recovery remained weak while China's economic growth was 7.4%. International crude oil prices fluctuated at a high level in the first half of the year before plunging in the second half, with a precipitous drop in the fourth quarter. In the second half of 2014, domestic refined oil products experienced 11 consecutive cuts. Through enhanced analysis and evaluation of macroeconomic and market trends, we actively responded to the significant change in international crude oil prices while accelerating structural adjustments, expanding our markets and improving management and cost controls. The Company maintained stable production and operations in general.

  • Production of oil and gas grew steadily. Domestic crude oil production remained stable, while overseas production increased significantly. Fuling shale gas proceeded smoothly with its first phase capacity construction. Natural gas production and sales volume both increased significantly. Average unit all-in-cost has been well controlled;
  • In the refinery business, crude oil processing and refined oil production recorded solid growth. The Company adjusted its product mix in response to the market, increasing production of oil products with strong demand and high-value-added products. Production of gasoline (especially high-octane gasoline) and jet fuel grew substantially, further lowering the diesel to gasoline ratio. The Company accelerated the quality upgrade of oil products. We also improved our resource allocation and strengthened inventory management and cost control;
  • Marketing and distribution segment progressed smoothly with its reform plan, laying the foundation for us to further transform the operational systems and mechanisms of the marketing business, explore multiple business models, and develop through innovation. In light of the extremely competitive refined oil product market, we adjusted our marketing strategies and improved our sales structure to increase total sales volume. Service-driven non-fuel business recorded significant growth compared to last year.
  • Chemical segment proactively responded to severe market conditions by adjusting its feedstock mix and lowering raw material costs. We continued to adjust our product mix, increase the proportion of high-value-added products, and also strengthened R&D, production and sales of our new products. We optimised operations of our manufacturing facilities, adjusted utilization rates, and shut down facilities with unsatisfactory marginal costs.

Fu Chengyu, Chairman of Sinopec said: "Under the severe market conditions of 2014, Sinopec focused on growth quality and efficiency, achieving safe and stable production. We effectively controlled the cost of each segment and maintained favourable growth momentum through adjustment and improvement in our business and product structure. The Company continued to fulfil its social responsibilities across all aspects. We focused on the effects of climate change and worked to achieve growth in a low-carbon and green manner, promoting win-win development between Sinopec and its various stakeholders. In 2015, China will enter a new normal phase of slower growth while international crude oil prices are likely to stay low. The Company still faces a challenging operating environment. Sinopec will seize the opportunities and tackle the challenges. We are committed to development through the improvement of internal quality and efficiency. We will maintain our strategy with innovation at the core in order to transform Sinopec to a scientific and services based company, and gradually shift the industry structure from 'petrol and chemicals' to 'energy and materials'."

Business Segment Operations Analysis

Exploration and production

In 2014, driven by management and technology innovation, we implemented exploration and development programs efficiently and made a number of new findings, some of which were commercial discoveries. With 106.75 billion cubic meters of proven reserves added to the Fuling shale gas project, Fuling became the first large scale shale gas field in China. In 2014, newly added proven oil and gas reserves amounted to 431 million barrels. In crude oil development, we focused on improving returns through the optimal development of new blocks, refined development in mature fields, and continuously enhancing recovery rates. In natural gas development, we accelerated the capacity construction of major projects, strengthened management of the Puguang gas field and other mature fields, adjusted marketing strategies, expanded sales volume, and achieved better economic returns. In shale gas development, the Fuling project's Phase I construction, with capacity of 5 billion cubic meters per year, progressed smoothly. Daily output of all producing wells exceeded design targets, laying a good foundation for future development. In 2014, production of oil and gas rose by 8.4% to 480.22 million barrels of oil equivalent, among which domestic crude oil production remained flat, while overseas production increased significantly. The Company acquired some upstream assets at the end of last year. Natural gas production rose by 8.5% to 716.4 billion cubic feet. Average unit all-in-cost has been well controlled.

In 2014, the operating revenues of this segment were RMB 227.6 billion, representing a decrease of 6.0% over 2013, mainly attributable to the decrease in crude oil price. Operating profit was RMB47.1 billion, down 14.1% year-on-year.

Summary of Operations for the Exploration and Production Segment


2014

2013

2012

Change from
2013 to 2014

Oil and gas production (mmboe)

480.22

442.84

427.95

8.44

Crude oil production (mmbbls)

360.73

332.54

328.28

8.48

China

310.87

310.84

306.60

0.01

Overseas

49.86

21.70

21.68

129.77

Natural gas production (bcf)

716.35

660.18

598.01

8.51

 

Summary of Proved Reserves of Crude Oil and Natural Gas


Reserve of Crude Oil (mmbbls)

31 December 2014

Proved Reserves

3,048

Proved Developed Reserves

2,782

    Shengli

1,917

    Others

548

  China

2,465

  Overseas

317

Proved Undeveloped Reserves

266

    Shengli

105

    Others

130

  China

235

  Overseas

31

 


Reserves of Natural Gas (bcf)

31 December 2014

Proved Reserves

6,741

Proved Developed Reserves

6,011

    Puguang

2,663

    Others

3,324

  China

5,987

  Overseas

24

Proved Undeveloped Reserves

730

  China

728

  Overseas

2

 

Refining

In 2014, the Company adjusted its product mix in response to the market, increasing production of oil products with strong demand and high-value-added products, such as gasoline (especially high-octane gasoline) and jet fuel. We further decreased the diesel to gasoline ratio. We also accelerated the quality upgrade of oil products and, for some regions, gasoline and diesel have already been upgraded to China V standard. We effectively controlled costs through improving resource allocation, optimizing selection of oil to be processed, as well as enhancing inventory management. Through tapping our well established advantages in product specialization, margins of lubricants, liquefied petroleum gas (LPG) and asphalt further improved with good economic returns. In 2014, we processed 235 million tonnes of crude oil, up by 1.5% from the previous year, and produced 146 million tonnes of refined oil products, up by 4.2% from the previous year.

Operating revenues of refining segment totalled RMB1,273.1 billion, down 2.9% year-on-year, mainly attributable to a decline in refined oil products. As international crude oil price plunged in the second half of 2014, refining gross margin was significantly reduced as the Company digested the high cost inventory. Operating loss of the segment was RMB2.0 billion.

Summary of Operations for the Refining Segment





Unit: million tonnes


2014

2013

2012

Change from 2013 to 2014
(%)

Refinery throughput

235.38

231.95

221.31

1.48

Gasoline, diesel and kerosene production

146.23

140.40

132.96

4.15

  Gasoline

51.22

45.56

40.55

12.42

  Diesel

74.26

77.40

77.39

(4.06)

  Kerosene

20.75

17.43

15.01

19.05

Light chemical feedstock

39.17

37.97

36.33

3.16

Light products yield (%)

76.52

76.19

76.75

0.33 percentage points

Refinery yield (%)

94.66

94.82

95.15

(0.16) percentage points

Note: Includes 100% of production of joint ventures

 

Marketing and distribution

In 2014, the Company initiated business restructuring in the marketing segment by introducing private capital. Sinopec Corp. entered into capital issuance agreements with 25 investors, laying the foundation for us to further transform the operational systems and mechanisms of the marketing business, explore multiple business models, and develop through innovation. Currently, the Company has received around RMB105 billion of equity financing according to the plan.

In 2014, in light of the slower growth of domestic demand for oil products and the particularly weak demand for diesel, we adjusted our marketing strategies by strengthening marketing efforts on high-octane gasoline and jet fuel to increase total sales volume. We expanded our retail volume by using our network and brand advantages and improved customer service at service stations. At the same time, we further developed our non-fuel businesses, improved the customer experience, and provided one-stop services through our online fuel-card services, and self-service mobile apps and equipment. Revenue of non-fuel business increased by 28% over 2013, to RMB17.1 billion. In 2014, total sales volume of refined oil products was 189 million tonnes, up by 5.1% from the previous year, with domestic sales rising by 3.4% to 171 million tonnes and retail rising by 3.6%.

In 2014, the operating revenues of this segment were RMB1,476.6 billion, down 1.7% over 2013, of which the sales revenues of gasoline totalled RMB 535.2 billion, up 5.8% year-on-year; sales revenues of diesel were RMB 686.4 billion, down 3.1% over 2013, and the sales revenues of kerosene were RMB 124.7 billion, up 0.8% over 2013. The operating profit of this segment was RMB29.4 billion, representing a decrease of 16.2% compared with 2013, mainly attributable to digestions of high cost inventory.

Summary of Operations, Marketing and Distribution Segment


2014

2013

2012

Change from
2013 to 2014
(%)

Total sales volume of refined oil products (million tonnes)

189.17

179.99

173.15

5.10

Total domestic sales volume of refined oil products (million tonnes)

170.97

165.42

158.99

3.36

Retail sales (million tonnes)

117.84

113.73

107.85

3.61

Direct sales & Distribution  

    (million tonnes)

53.13

51.69

51.14

2.79

Annual average throughput per station (tonne/station)

3,858

3,707

3,498

4.07


As of 31 Dec 2014

As of 31 Dec 2013

As of 31 Dec 2012

Previous year

to the end of the reporting period
(%)

Total number of service stations under Sinopec brand

30,551

30,536

30,836

0.05

Number of company-operated stations

30,538

30,523

30,823

0.05

 

Chemicals

In 2014, confronted by severe market conditions with low prices of chemical products, the Company cut its feedstock costs by increasing the light feedstock ratio, adjusted its product mix, and also strengthened efforts in R&D, production, and sales of new products. Sales of new polyolefin products and specialty materials accounted for 54.7% of total sales, and high-value-added rubber accounted for 17.4%. The synthetic fibre differentiation rate was 76.7%. In addition, we optimised operations of our manufacturing facilities, adjusted utilization rates, and shut down facilities with unsatisfactory marginal costs. Ethylene output was up by 7.2% from 2013 to 10.7 million tonnes. Meanwhile, by keeping inventories at a low level, and by implementing a differentiated marketing strategy, our full-year chemical sales volume increased by 4.4% to 60.79 million tonnes, with all manufactured chemicals sold.

In 2014, the operating revenue of the chemicals segment was RMB427.5 billion, down 2.3% year-on-year, mainly attributable to the drop in chemical product prices. The operating loss of this segment was RMB2.2 billion. The segment has been profitable since the third quarter of 2014.

Summary of Operations, Chemicals Segment                                                                    

Unit: thousand tonnes


2014

2013

2012

Change from 2013
to 2014 (%)

Ethylene

10,698

9,980

9,452

7.19

Synthetic resin

14,639

13,726

13,343

6.65

Synthetic rubber

939

960

936

(2.19)

Synthetic fibre monomer and polymer

8,383

9,227

8,950

(9.15)

Synthetic fibre

1,315

1,392

1,339

(5.53)

Note: Includes 100% production of joint ventures

 

Research and development

In 2014, the Company fully utilised the role of research and development in supporting and leading its business operations, stepping up its R&D efforts with remarkable results. In upstream, we successfully completed the well pad drilling test for shale gas development, achieving substantial improvements in efficiency of construction. We developed offshore well safety control technologies to enhance the safety and efficiency of production in offshore oilfields. In refining, we commercialised technologies for high-aromatics-content catalytic diesel hydrogenation, countercurrent continuous reforming, and diesel ultra-deep hydrogenation for sulphur removal. In chemicals, we brought online a demonstration plant for converting syngas to ethylene glycol, marking a breakthrough in coal chemical technologies. We successfully commissioned a demonstration plant for super-imitation-cotton fibre technologies. We also developed bacteria-resistant polypropylene and polypropylene for low-temperature packaging. We applied for a total of 4,968 patents at home and abroad in 2014, with 3,011 approved. During the year, we won one National Patent Gold Award and five Awards of Excellence, four first-place awards and eight second-place awards for National Science and Technology Advancement.

Health, safety and the environment

In 2014, the Company vigorously implemented its green and low-carbon development strategy and its Clear Water, Blue Sky environmental protection plan. We officially launched the Energy Efficiency Doubling initiative, continuously advancing carbon asset management. By further integrating efforts in energy conservation, emissions control and carbon reduction, the effectiveness of our energy saving and environmental protection activities improved continuously. Compared with last year, our energy intensity was down by 0.6%; industrial water consumption was down by 1.1%; chemical oxygen demand in waste water discharge was down by 2.5%; NHx emissions were down by 4.2%; sulphur dioxide emissions were down by 8.1%; NOx emissions were down by 3.9%; and all hazardous chemicals, discharged water, gas, and solid waste were properly treated.

In 2014, the Company improved its work safety and accountability mechanism, and conducted safety checks, with a focus on identification and elimination of potential hazards. We stepped up the construction of our emergency response capabilities and IT applications for safety management. We also standardised worker protection, and safeguarded the health of our employees. For more detailed information, please refer to our corporate report, Communication on Progress for Sustainable Development.

Capital expenditures

In 2014, the Company optimised its asset portfolio and investment activities. Total capital expenditure was RMB154.640 billion, down by 4.2% compared with the plan made at the beginning of the year. Capital expenditure for exploration and production segment was RMB 80.196 billion, mainly for exploration and production in Jiyang trough, Sichuan Basin, Tahe oilfield, and Ordos Basin; liquefied natural gas (LNG) projects in Shandong and Guangxi; construction of long-distance oil and gas pipeline projects, and the overseas projects. We added crude oil capacity of 4.36 million tonnes per year and natural gas capacity of 5.9 billion cubic meters per year. Capital expenditure for refining segment was RMB27.957 billion, mainly for refinery revamping and gasoline and diesel quality upgrading projects by subsidiaries in Shijiazhuang, Yangtze, Tahe and Jiujiang. We added refining capacity of 9.5 million tonnes per year, and acquired 37.5% shares of Yanbu Refinery. Capital expenditure for marketing and distribution segment was RMB26.989 billion, mainly for developing and renovating service stations and for building oil product pipelines and oil depots. We added 556 service stations for the year. Capital expenditure for chemicals segment was RMB15.85 billion, mainly for the coal chemical plant at Sinopec Great Wall Energy and Chemical Industry (Ningxia) Company Ltd. and the Qilu acrylonitrile project. We added ethylene capacity of 190,000 tonnes per year and synthetic resin capacity of 600,000 tonnes per year. Capital expenditure for corporate and others was RMB 3.648 billion, mainly for R&D facilities and IT application projects.

Business Prospects

The 2015 world economy is expected to continue its slow recovery while we expect the global crude oil price to remain weak for the foreseeable future. Consequently, the crude oil price realised by the Company will continue to experience decline in the first quarter of 2015, and the Company is digesting high inventory cost. It is expected that net profit attributable to shareholders of the Company will be in the vicinity of breakeven point for the first quarter of 2015.

In 2015, China's economy will enter a "new normal" phase of slower growth. China's domestic oil products market will see steady growth along with the upgrading of oil products. The demand for major chemical products will grow steadily.

The Company will focus on enhancing its management quality and efficiency while deepening reforms, transforming the development models and implementing rigorous management principles. We will put more emphasis on restructuring, resource optimisation, innovation and risk control. Key measures are as follows:

Exploration and development: In response to the lower oil prices, the Company will ensure it takes reserves, output, investment, costs and earnings all into consideration, while also optimising exploration arrangements, reducing development costs, and increasing commercial yields for oil and gas products. In exploration, we will focus on making commercial discoveries by exploiting reserve potential in frontier areas and other key promising regions, aiming to improve the success rate of exploration. In development, we will make educated decisions on selective projects and production targets based on the oil price level; we will also further develop mature fields and put technologies that will significantly enhance recovery into wider usage; in addition, we will continue the development of shale gas to achieve fast-track growth and expedite capacity-building projects for natural gas; we will also enhance the sophistication of the planning and management in our developed gas fields. In 2015, we plan to produce 300 million barrels of crude oil domestically and 48 million barrels overseas; we also plan to produce 886.3 billion cubic feet of natural gas in 2015.

Refining: We will optimise our crude procurement processes, reallocate our resources and take better advantage of our economies of scale to control unit costs. We will continue upgrading oil product quality to supply the market with clean fuels. We will also strengthen the integration of production and sales, adjust our product mix and utilisation rates, and increase the output of high value-added products which are well received by the market. In addition, we will seek to unlock the potential value of operation specialisation, improve our sales networks, and enhance our market share of lubricants, LPG, asphalt and other products. In 2015, we plan to refine 243 million tonnes of crude oil and produce 152 million tonnes of oil products.

Marketing and distribution: The Company will proactively explore new operational systems and mechanisms with an aim to transform Sinopec from an oil products supplier into an integrated services provider. To maximise efficiency, the Company will improve its market analysis based on fundamental changes in the supply and demand in the market, as well as keeping a low inventory level to mitigate risks. In terms of our marketing business, we will continue to carry out adjustments to optimise the marketing systems in order to expand our retail sales both in total and per station. We will accelerate the planning and construction of our oil product pipelines, carry out differentiated marketing strategies, and increase customer loyalty by providing tailor-made services. We will also develop our non-fuel businesses on the basis of specialisation and market orientation to enhance the growth and profitability of the non-fuel business. In 2015, we plan to sell 173 million tonnes of oil products in the domestic market.

Chemicals: The Company will further adjust its feedstock mix to reduce costs, accelerate adjustments in its product mix, and strengthen the integration of manufacturing, marketing and R&D. We will increase the production of high value-added products which are well received by the market and at the same time enhance the development, production, and promotion of new products. We will adjust facilities operations and control utilisation rates based on the marginal utility of the industry supply chain. We will take advantage of the strength of our marketing network and improve our sales performance. In 2015, we plan to produce 10.9 million tonnes of ethylene.

R&D: We will continue to implement development strategies driven by innovation. Areas of focus for R&D include shale oil and gas exploration and development, and recovery rate enhancement to boost production and reserve. We will also enhance R&D activities in biofuels, heavy oil refining and clean fuels to facilitate the upgrade of oil product quality. We will develop new catalytic materials, high-performance synthetic chemicals and fine chemicals to promote the restructuring of the product mix. Moreover, we will develop and apply technologies that are more environmentally friendly and less carbon-intensive. We will continue to emphasise fundamental and forward-looking R&D activities to improve the Company's innovation capability in further supporting and driving its transformative growth.

Capital expenditure: In 2015, the Company will look at improving its investment and project portfolios based on market conditions. Our capital expenditure budget for the year of 2015 is RMB135.9 billion, of which the exploration and production segment accounts for RMB68.2 billion, mainly for the construction of Fuling shale gas project, exploration and development projects in Shengli oilfield, Sichuan Basin, Tahe oilfield, Junggar Basin, and Ordos Basin as well as Guangxi and Tianjin LNG projects, construction of gas pipelines and overseas projects. Expenditure for the refining segment accounts for RMB24.0 billion, mainly for the revamp of Qilu and Jiujiang refineries, as well as product quality upgrade projects such as gasoline adsorbent desulfurization and diesel hydrogenation. Expenditure for  the marketing and distribution segment accounts for RMB22.6 billion, mainly for revamping service stations, constructing the product pipeline networks, optimising the distribution of tank farms, improving facilities in service stations and promoting non-fuel businesses to develop an integrated service. Expenditure for the chemicals segment accounts for RMB15.1 billion, mainly for Jinling propylene oxide and LPG utilisation projects and Hainan PX phase II project. Expenditure for corporate and others is RMB6.0 billion, mainly for R&D facilities and IT projects.

Appendix

Principal financial data and indicators
Financial data and indicators prepared in accordance with ASBE

 

Items

For the years ended 31 December

2014

2013

Change

2012

RMB millions

RMB millions

(%)

RMB millions

Operating income

2,825,914

2,880,311

(1.9)

2,786,045

Operating profit

65,481

96,453

(32.1)

87,926

Profit before taxation

66,481

96,982

(31.5)

90,107

Net profit attributable
to equity shareholders
of the Company

47,430

67,179

(29.4)

63,496

Net profit attributable
to equity shareholders
of the Company
excluding
extraordinary gain and loss

43,238

66,658

(35.1)

61,922

Net cash flow from
operating activities

148,347

151,893

(2.3)

143,462

 

Items

At 31 December

2014

2013

Change

2012

RMB millions

RMB millions

(%)

RMB millions

Total assets

1,451,368

1,382,916

4.9

1,238,522

Total liabilities

804,273

759,656

5.9

687,921

Total equity attributable
to equity shareholders
of the Company

594,483

570,346

4.2

513,374

Total shares (1,000
shares)

118,280,396

116,565,314

1.5

86,820,287

 

Principal financial indicators

Items

At 31 December

2014

2013

Change

2012

RMB

RMB

(%)

RMB

Basic earnings per share

0.406

0.579

(29.9)

0.562

Diluted earnings per share

0.406

0.543

(25.2)

0.542

Basic earnings per share
based on latest total shares *

0.404

0.578

(30.1)

-

Basic earnings per share
(excluding extraordinary gain
and loss)

0.370

0.574

(35.5)

0.548

Weighted average return on
net assets (%)

8.14

12.24

(4.10)

percentage points

12.80

Weighted average return
(excluding extraordinary gain
and loss) on net assets (%)

7.42

12.15

(4.73)

percentage points

12.48

Net cash flow from operating
activities per share

1.270

1.308

(2.9)

1.272

*:Calculated based on the total shares on 13 March 2015

 

Financial information extracted from the financial statements prepared in accordance with IFRS

Unit: RMB millions

Items

For the years ended 31 December

2014

2013

2012

2011

2010

Turnover, other operating
revenues and other income

2,825,914

2,880,311

2,786,045

2,505,683

1,913,182

Operating profit

73,487

96,785

98,662

105,530

104,974

Profit before taxation

65,504

95,052

90,642

104,565

103,663

Profit attributable to equity
shareholders of the
Company

46,466

66,132

63,879

73,225

71,782

Basic earnings per share
(RMB)

0.398

0.570

0.566

0.650

0.637

Diluted earnings per share
(RMB)

0.397

0.534

0.545

0.625

0.631

Return on capital employed (%)

6.05

8.02

9.09

11.49

12.95

Return on net assets (%)

7.84

11.63

12.50

15.50

17.11

Net cash generated from
operating activities per
share (RMB)

1.270

1.308

1.262

1.336

1.512

 


Unit: RMB millions

Items

At 31 December

2014

2013

2012

2011

2010

Non-current assets

1,091,224

1,009,906

892,929

794,423

727,642

Net current liabilities

244,113

198,812

148,358

101,485

76,177

Non-current liabilities

201,534

189,468

196,535

185,594

200,429

Minority interests

52,536

52,823

37,122

35,016

31,432

Total equity attributable to
equity shareholders of the
Company

593,041

568,803

510,914

472,328

419,604

Net assets per share (RMB)

5.014

4.880

4.527

4.191

3.723

Adjusted net assets per
share (RMB)

4.950

4.841

4.476

4.172

3.722

 

The following table sets forth the operating revenues, operating expenses and operating profit/(loss) by each segment before elimination of the intersegment transactions for the periods indicated, and the percentage change of 2014 compared to 2013.

 

Unit: RMB millions


Year ended 31 December

Change

2014

2013

(%)

Exploration and Production Segment




Operating revenues

227,597

242,107

(6.0)

Operating expenses

180,540

187,314

(3.6)

Operating profit

47,057

54,793

(14.1)

 Refining Segment




Operating revenues

1,273,095

1,311,269

(2.9)

Operating expenses

1,275,049

1,302,670

(2.1)

Operating (loss) / profit

(1,954)

8,599

-

Marketing and Distribution Segment




Operating revenues

1,476,606

1,502,414

(1.7)

Operating expenses

1,447,157

1,467,271

(1.4)

Operating profit

29,449

35,143

(16.2)

Chemicals Segment




Operating revenues

427,485

437,587

(2.3)

Operating expenses

429,666

436,719

(1.6)

Operating (loss) / profit

(2,181)

868

-

Corporate and others




Operating revenues

1,310,236

1,359,109

(3.6)

Operating expenses

1,311,299

1,362,521

(3.8)

Operating loss

(1,063)

(3,412)

(68.8)

Elimination of inter-segment profits

2,179

794

-

 

About Sinopec:

Sinopec is one of the largest integrated energy and chemical companies with upstream, midstream and downstream operations in China. Its principal operations include: the exploration and production, pipeline transportation and sales of petroleum and natural gas; the sales, storage and transportation of petroleum products, petrochemical products, synthetic fibre, fertilizer and other chemical products; import & export, as well as import and export agency business of oil, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Adhering to its corporate mission of "to provide energy for a better living," Sinopec implements strategies of resources, markets, integration, internationalization, differentiation and green low-carbon development with a view to realize its vision of building a people-oriented, world-leading energy and chemical company.

Disclaimer:

This press release includes "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, reserve volume, other 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 the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

Investor Inquiries: 

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Fax: (86 10) 5996 0386 

Fax: (86 10) 5996 0386

Email: ir@sinopec.com

Email: media@sinopec.com 



Hong Kong


Tel: (852) 2824 2638

Tel: (852) 3512 5000

Fax: (852) 2824 3669

Fax: (852) 2259 9008

Email: ir@sinopechk.com 

Email: sinopec@brunswickgroup.com

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Source: PR Newswire (March 22, 2015 - 7:50 AM EDT)

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