Beijing,
People?s Republic of China (PRC) ? April 28,
2006 ? China Petroleum & Chemical Corporation (?Sinopec Corp.? or
?the Company?) (HKEX: 386; NYSE: SNP; LSE: SNP; CH: 600028) today announced its
financial results for the first quarter ended 31 March 2006.
Based
on the PRC Accounting Rules and Regulations, income from principal operations
for the first quarter of 2006 amounted to RMB 222.70 billion, an increase of
31.74% over the same period in 2005, and the net profit amounted to RMB 9.13
billion. Earnings per share was RMB 0.105, an increase of 1.4% over the same
period in 2005.
Based on IFRS,
turnover and other operating revenues of the Company amounted to RMB 227.20
billion, an increase of 30.48% over the same period in 2005. Profit attributable
to equity shareholders amounted to RMB 9.29 billion and earnings per share was
RMB 0.107, a decrease of 3.62% over the same period in 2005.
Business Review
During
the first quarter of 2006, the Chinese economy continued to grow rapidly and
domestic demand for refined oil products and petrochemical products remained
strong.
International prices of crude oil rose to new heights. According to the
comprehensive reform scheme to improve petroleum pricing mechanism, the State
began to impose special oil income levy on E & P companies and raise
moderately domestic oil products prices from March 26th. By
actively working to optimize resource allocation and product structure and
expand production volume, the Company achieved a sustained increase in oil and
gas production, particularly in the volume of crude oil processed, as well as in
the sales volume of refined oil products, ethylene production and synthetic
resin.
Exploration
and Production: As a result of its tireless efforts over the past five
years, the Company has discovered the largest and most abundant marine facies
gas field in China ---Puguang Gas field, located in Northeast Sichuan Province.
Also during the first quarter, the Company made significant progress in the
exploration and development of oil and gas reserves in the Tahe oilfields in
western China and the Ordos Basin. The expansion of the production capacity for
crude oil and natural gas progressed smoothly. Output of crude oil and
natural gas increased by 2.81% and 23.4% respectively compared to the same
period in 2005. Operating profit was RMB16.62 billion.
Summary
of Principal Operating Results for the First Quarter
|
Exploration
and Production |
Unit |
Three-month period ended 31st March |
Changes compared with
the same period in 2005
|
|
|
|
2006 |
2005 |
(%) |
|
Crude oil
production |
thousand
tonnes |
9,798.7 |
9,530.5 |
2.81 |
|
Natural gas
production |
million cubic
meters |
1,813 |
1,469 |
23.42 |
|
Realised crude oil
price |
RMB/tonne |
3,112.81 |
2,127.29 |
46.33 |
|
Realised natural gas
price |
RMB/thousand
cubic meters |
745.10 |
655.36 |
13.69 |
Refining:
The Company actively optimized resource allocation and transportation and made
full use of the potential of the refining facilities which operated steadily at
high load volumes. Facility operation was optimized and the Company work hard to
alleviate product shortages. The ratio of diesel to gasoline and yield of light
oil increased. The processing volume of crude oil and output of refined oil
products increased by 2.45% and 1.36% respectively compared to the same period
in 2005. With strict price control on the refined oil, operating loss was RMB
7.88 billion.
Summary
of Principal Operating Results for the First Quarter
|
Refining |
Unit |
Three-month period ended 31st March |
Changes compared with
the same period in 2005
|
|
|
|
2006 |
2005 |
(%) |
|
Crude processing
volume |
thousand
tonnes |
35,170 |
34,330 |
2.45 |
|
Gasoline, diesel and
kerosene production |
thousand
tonnes |
20,890 |
20,610 |
1.36 |
|
Of
which: Gasoline |
thousand
tonnes |
5,530 |
5,820 |
(4.98) |
|
Diesel |
thousand
tonnes |
13,820 |
13,110 |
5.42 |
|
Kerosene |
thousand
tonnes |
1,540 |
1,680 |
(8.33) |
|
Light chemical
feedstock |
thousand
tonnes |
5,770 |
4,990 |
15.63 |
|
Light yield |
% |
74.81 |
73.48 |
1.33 percentage point |
|
Refining yield |
% |
93.64 |
92.63 |
1.01 percentage point |
Marketing
and Distribution: In an effort to satisfy the demand for refined oil
products in China the Company acquired resources through various channels, while
optimizing resource allocation of refined products and reducing storage and
transportation costs. Domestic sales and retail volume of refined oil products
increased by 7.87% and 23.85% respectively, compared to the same period in 2005.
Operating profit was RMB 3.33 billion.
Summary
of Principal Operating Results for the First Quarter
|
Marketing and
Distribution |
Unit |
Three-month period ended 31st March |
Changes compared with
the same period in 2005
|
|
|
|
2006 |
2005 |
(%) |
|
Total domestic sales of
refined oil products |
thousand
tonnes |
26,030 |
24,130 |
7.87 |
|
Of
which: Retail |
thousand
tonnes |
16,670 |
13,460 |
23.85 |
|
Distribution |
thousand
tonnes |
4,910 |
5,350 |
(8.22) |
|
Wholesale |
thousand
tonnes |
4,450 |
5,320 |
(16.35) |
|
Total number of petrol
stations |
Stations |
29,744 |
30,164 |
(1.39) |
|
Of
which: Owned and self-operated |
Stations |
27,464 |
26,682 |
2.93 |
|
Franchised |
Stations |
2,280 |
3,482 |
(34.52) |
|
Throughput per petrol
station
(Note ) |
Tonnes/station |
2,428 |
2,018 |
20.32 |
Note
: Throughput per petrol station data is an
annualized average
Chemicals:
Production volumes at the major chemical production facilities of the
Company were stable and the sales system for chemical products underwent further
reform. The
Company sold all the chemical products it produced during the quarter. The
production of ethylene and synthetic resin increased by 34.94% and 23.29%
respectively compared to the same period in 2005. Operating profit was RMB 3.14
billion.
Summary
of Principal Operating Results for the First Quarter
|
Chemicals
(Note) |
Unit |
Three-month periods ended 31st March |
Changes compared with
the same period last year
|
|
|
|
2006 |
2005 |
(%) |
|
Ethylene |
thousand
tonnes |
1,514 |
1,122 |
34.94 |
|
Synthetic resins |
thousand tonnes
|
2,075 |
1,683 |
23.29 |
|
Synthetic rubbers |
thousand tonnes
|
161 |
158 |
1.90 |
|
Monomers and polymers
for synthetic fibers |
thousand tonnes
|
1,782 |
1,596 |
11.65 |
|
Synthetic fibers |
thousand tonnes
|
390 |
400 |
(2.50) |
|
Urea |
thousand tonnes
|
441 |
388 |
13.66 |
Note
: BASF-YPC and Shanghai Secco were put into commercial production
in late June 2005. The operating results of ethylene and synthetic
resins for the three-month period ending 31 March 2006 included
all the output of BASF-YPC and Shanghai Secco.
Capital Expenditure:
The
capital expenditure of the Company reached RMB 14,390 million for the first
quarter, with capital expenditure for Exploration and Production amounting to
RMB 5,372 million. Newly-built production capacity for crude oil reached
1.27 million ton per year and newly-built production capacity for natural gas
reached 469 million cubic meters per year. Capital expenditure for the
Refining segment was RMB 2,821 million and some reconstruction projects such as
revamping and expansion in Guangzhou and Yanshan, as well as upgrading secondary
refining processing units, progressed smoothly. Capital expenditure for
the Chemical segment was RMB 1,725 million, mainly invested in the
2nd Phase of the Maoming ethylene reconstruction project, the
ethylene glycol unit of Shanghai Petrochemical Company Limited, the aromatics
and PTA reconstruction of Sinopec Yangzi Petrochemical Company Ltd, as well as
coal gasification projects for three sets of chemical fertilizers. Capital
expenditure for Marketing and Distribution was RMB 4,136 million, mainly used
for establishing logistics systems, and building and purchasing gas
stations. Ninety seven gas stations were added during the quarter. Capital
expenditure for Company headquarters and others was RMB 336 million.
