Sinopec Records Net Profit RMB 57.5 Billion in 2019
BEIJING, March 30, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2019.
Financial Highlights
-- In accordance with IFRS, the Company's turnover and other operating
revenues reached RMB 2.97 trillion, up 2.6% year-on-year at a historic
high; Operating profit increased 4.8% year-on-year; Profit attributable
to equity shareholders of the Company was RMB 57.5 billion. Basic
earnings per share were RMB 0.475.
-- In accordance with ASBE, the Company's operating profit was RMB 90.0
billion. Profit attributable to shareholders of the Company was RMB 57.6
billion. Basic earnings per share were RMB 0.476.
-- In accordance with IFRS, the Company's liability-to-asset ratio as at
the end of 2019 was 50.04%, maintaining a sound financial position. Cash
and cash equivalents amounted to RMB 60.3 billion as at 31 December
2019,
-- In upstream, greater efforts were made in oil and gas exploration,
achieving satisfactory results in increasing reserves, stabilizing oil
production, increasing gas output, and reducing costs. The domestic oil
and gas reserve replacement ratio reached 138.7%, and market share of
natural gas further increased. Operating profit of the refining segment
totaled RMB 30.6 billion; Operating profit of the chemicals segment was
RMB 17.2 billion; Operating profit of the marketing and distribution
segment was RMB 29.1 billion.
-- Taking into account the Company's profitability, shareholder returns and
the future development, the Board of Directors proposed a final dividend
of RMB 0.19 per share. Combined with the interim dividend of RMB 0.12
per share, the total dividend for the year is RMB 0.31 per share.
Dividend payout ratio reached 65.3%.
Business Highlights
In 2019, the global economy slowed down while China maintained an overall stable with its gross domestic product (GDP) up by 6.1%. International oil prices fluctuated in a wide range while domestic market saw rapid growth demand for natural gas and fierce competition in oil products due to abundant supply, and chemicals prices decreased. The Company actively addressed market changes by pursuing innovative, coordinated, green, open and shared development. Through implementing specialized development, market-oriented operation, internalisation and overall coordination, we pushed forward all aspects of our work, and achieved solid operating results.
-- Exploration and Production segment: pressed ahead with high efficiency
exploration and profit-oriented development, continuously reduced cost
and expenditure on all fronts. Tangible results were achieved in
maintaining oil production, increasing gas output and reducing cost. We
reinforced venture exploration and preliminary exploration in new areas
which led to new discoveries in Tarim, Sichuan and Erdos basins. In
natural gas development, we constantly pushed forward capacity building
in Fuling, Weirong, and West Sichuan gas fields, expanded the market and
sales, and promoted coordinated development along the value chain.
-- Refining segment: continuously optimised product mix and the production
volume of high-value-added products have been further increased. We
optimised the production plan for low sulfur fuel oil and reduced cost.
We leveraged our advantage in production and sales, and moderately
increased export of oil products. We made structural adjustments,
comprehensively optimized production and ensured safety and reliability
of the refining facilities. We improved the marketing and distribution
systems and realised a growth momentum in high grade products.
-- Marketing and Distribution segment: brought our advantages of integrated
production and marketing network into full play, adhered to the
guideline of "achieving gains in both sales volume and profits",
coordinated allocation of resources, expanded sales and increased
profit, and achieved sustained growth in both total sales volume and
retail scale. We strengthened development and marketing of company-owned
brands, and promoted the innovation of non-fuel business model and its
market-oriented reform, to speed up the development of non-fuel
business.
-- Chemicals segment: adhered to the development philosophy of "basic plus
high-end", sped up advanced capacity building. We optimized products
slate, enhanced integration among production, marketing, R&D and
application, vigorously promoted the development and application of new
products, and raised the proportion of new and specialty products. We
deepened targeted marketing and service, realizing full sales.
Mr. Zhang Yuzhuo, Chairman of Sinopec Corp. said, "In 2019, global economy slowdown while China's economy remained overall stable. With international oil prices fluctuating within a wide range and new production capacity for refinery and petrochemicals being excessively released, market competition increased dramatically. As a result, the internal and external risks and challenges faced by the Company have increased significantly. In such a complicated and difficult market, with focus on both short and long-term goals in mind, the Board of Directors adhered to the guideline of pursuing progress while maintaining stability. Furthermore, it concentrated on modernizing the company's corporate governance systems and capabilities, and deepening reforms to sustain continuous growth and development. Under the management's leadership, our employees demonstrated dedication and a conscientious and responsible work spirit, and implemented all practices with discipline and in a professional manner. Significantly, the Company achieved better than expected operating results and made new progress in all fronts as we continuously deepened reform, exercised effective risk management, stabilised growth, and adjusted the operating structure while guaranteeing safety. Looking into 2020, the global economy will face more instability and uncertainty brought by the outbreak. Although the Chinese economy may be temporarily impacted, China's solid economic fundamentals will remain unchanged. We believe that as the control and prevention of outbreak continues to improve domestically, the domestic demand for petroleum and petrochemical products that was suppressed and frozen will rebound quickly.the Company will continue to adhere to the overall strategy of "making progress while maintaining stability," and to that end will implement new development philosophies and energy security strategies, as well as further strengthen corporate governance. The Company will also continue to focus on supply-side structural reform and continue to leverage its advantages of integration, aiming to realize a development pattern with energy resources as the backbone, clean energy and synthetic materials as two development wings, and new energy, new economies, and new fields as important growth points. The Company will continue to deepen the reform of its systems and mechanisms, further improve its corporate governance system and enhance governance capabilities. With headquarters acting as the center of restructuring, the Company will further advance reforms of its management system and market-oriented operation mechanism. It will strengthen construction of its systems, improve management, and better mobilize initiatives in every aspect so as to constantly increase the ability to create synergies, raise efficiency and mitigate risks. I firmly believe that with the concerted efforts of our Board of Directors, management and entire staff, as well as support from our shareholders and the community, Sinopec Corp. will surely develop in distinct ways that are more efficient and of higher quality, which in turn will create greater value for shareholders and the community."
Business Review
Exploration and Production
In 2019, we implemented the action plan of redoubling efforts in oil and gas exploration and production, actively pressed ahead with high-efficiency exploration and profit-oriented development, accelerated the systematic integration of natural gas production, supply, storage and marketing, continuously reduced cost and expenditure on all fronts, and achieved tangible results in maintaining oil production, increasing gas output and cutting cost. We reinforced venture exploration and preliminary exploration in new areas which led to new discoveries in Tarim, Sichuan and Erdos basins. The Company's newly added proved reserves in China reached 587 million barrels of oil equivalent, with domestic reserve replacement ratio at 138.7%. In crude oil development, we proceeded with the capacity building in Shunbei oilfield, strengthened profitable production capacity of hard-to-recover reserves in mature fields, intensified EOR technology breakthrough and application, and ensured steady production. In natural gas development, we constantly pushed forward capacity building in Fuling, Weirong, and West Sichuan gas fields, expanded the market and sales, and promoted coordinated development along the value chain. The Company's production of oil and gas reached 458.92 million barrels of oil equivalent, with domestic crude production reaching 249.43 million barrels and natural gas production totaling 1,047.78 billion cubic feet, up by 7.2% year on year.
In 2019, the operating revenues of this segment was RMB 210.7 billion, representing an increase of 5.3% over 2018. This was mainly attributed to the rise of realised price and sales volume in natural gas as a result of the expansion of natural gas business. In 2019, the operating profit of the exploration and production segment was RMB 9.3 billion, representing an increase of RMB 19.4 billion compared with 2018. The segment reinforced efficient exploration and profit-oriented development, enhanced stable production of crude oil, accelerated construction of natural gas production-supply-storage-sale system and actively expanding market and promoting sales, strengthened cost control, and effectively improved profitability.
Exploration and Production: Summary of Operations
Twelve-month periods ended
31
Changes
December
2019 2018
%
---
Oil and gas production (mmboe) 458.92 451.46 1.7
---
Crude oil production (mmbbls) 284.22 288.51 (1.5)
---
China 249.43 248.93 0.2
---
Overseas 34.79 39.58 (12.1)
---
Natural gas production (bcf) 1,047.78 977.32 7.2
---
Refining
In 2019, with market-oriented approach, we optimised product mix to produce more gasoline and jet fuel, increased production of high value-added products, and lowered diesel-to-gasoline ratio to 1.05. We optimised the production plan for low sulfur fuel oil and reduced cost. We leveraged our advantage in production and sales, and moderately increased export of oil products to keep a relatively high utilization rate. We promoted quality upgrading projects and made structural adjustments, comprehensively optimized production and ensured safety and reliability of the refining facilities. We improved the marketing and distribution systems and realised a growth momentum in high grade lubricants and grease, LPG, asphalt and sulphur. In 2019, the Company processed 249 million tonnes of crude oil, and produced 160 million tonnes of refined oil products, up by 3.4%, with gasoline and kerosene up by 2.6% and 7.8% respectively year on year.
In 2019, the operating revenues of this segment was RMB 1,224.2 billion, representing a decrease of 3.1% over 2018. This was mainly attributed to the decrease in products prices compared with the same period of last year. In 2019, the unit refining cash operating cost (defined as operating expenses less the processing cost of crude oil and refining feedstock, depreciation and amortisation, taxes other than income tax and other operating expenses, then divided by the throughput of crude oil and refining feedstock) was RMB 178 per tonne, a decrease of 1.4% over 2018. In 2019, the operating profit of the segment totaled RMB 30.6 billion, representing a decline of RMB 24.2 billion compared with 2018.
Refining: Summary of Operations
For the twelve
months
Changes
ended 31 December
2019 2018
(%)
---
Refinery throughput (million tonnes) 248.52 244.01 1.8
---
Gasoline, diesel and kerosene 159.99 154.79 3.4
production (million tonnes)
---
Gasoline (million tonnes) 62.77 61.16 2.6
---
Diesel (million tonnes) 66.06 64.72 2.1
---
Kerosene (million tonnes) 31.16 28.91 7.8
---
Light chemical feedstock production 39.78 38.52 3.3
(million tonnes)
---
Light yield (%) 76.38 76.00
0.38 percentage
points
---
Refining yield (%) 94.98 94.93
0.05 percentage
points
---
Note: Includes 100% of the production of domestic joint ventures.
Marketing and Distribution
In 2019, confronted with fierce market competition, the Company brought our advantages of integrated production and marketing network into full play, adhered to the guideline of "achieving gains in both sales volume and profits", coordinated allocation of resources, expanded sales and increased profit, and achieved sustained growth in both total sales volume and retail scale. With focus on customer need, we adopted a flexible and targeted marketing strategy, and improved our services. We upgraded our distribution network to further strengthen our existing advantages. We accelerated the construction and operation of CNG stations and explored the development of hydrogen fueling stations. Total sales volume of refined oil products for the year was 255 million tonnes, up by 7.3% year on year, of which domestic sales volume accounted for 184 million tonnes, up by 2.3%. Meanwhile, we strengthened development and marketing of company-owned brands, and promoted the innovation of non-fuel business model and its market-oriented reform, to speed up the development of non-fuel business.
In 2019, the operating revenues of this segment was RMB 1,431 billion, representing a decrease of 1.1% over 2018. In 2019, the operating profit of this segment was RMB 29.1 billion, representing an increase of 24% compared with 2018.
Marketing and Distribution: Summary of Operations
For twelve months
Changes
ended 31 December
2019 2018
%
---
Total sales volume of refined oil products 254.95 237.69 7.3
(million tonnes)
---
Total domestic sales volume of refined oil 184.45 180.24 2.3
products (million tonnes)
---
Retail (million tonnes) 122.54 121.64 0.7
---
Direct sales and Wholesale 61.91 58.61 5.6
(million tonnes)
---
Annualised average throughput per station 3,992 3,979 0.3
(tonne/station)
---
As of 31
As of 31
Changes
December 2019 December 2018 from the end of
previous
year (%)
Total number of Sinopec-branded service 30,702 30,661 0.1
stations
---
Company-operated 30,696 30,655 0.1
---
Chemicals
In 2019, the Company followed the development philosophy of "basic plus high-end", sped up advanced capacity building, and optimised business portfolio layout. We persistently fine-tuned chemical feedstock mix to increase the yield and lower cost. We optimized products slate, enhanced integration among production, marketing, R&D and application, vigorously promoted the development and application of new products, and raised the proportion of new and specialty products. We further adjusted facility structures to enhance the dynamic optimisation of facilities and product chain, and improved the utilisation based on market demand. Ethylene production in 2019 reached 12.49 million tonnes, up by 8.5% year on year. The differential ratio of synthetic fiber reached 90%, and the ratio of new and specialty products in synthetic resin reached 65.3%. We also promoted targeted marketing and service to further expand our business, with total chemical sales volume increased by 3.3% to 89.50 million tonnes, realising full sales.
In 2019, the operating revenue of the chemicals segment was RMB 495.2 billion, representing a decrease of 9.4% as compared with that of 2018. This was mainly due to sharp decrease in prices of chemical products as a result of the concentrated release of new capacity, as well as the change of supply-demand structure. In 2019, confronted with the business cycle correction and decreased chemical margin, the Company strengthened the coordination among research, development, production and marketing, continuously reinforced the profit prediction based on the market, optimised the structures of feedstock, product and facilities,, intensified allocation of resources, pushed ahead with targeted marketing and precise service strategy, and achieved steadily growing sales volume of petrochemicals. The operating profit of this segment was RMB 17.2 billion.
Major Chemical Products: Summary of Operations Unit of production: 1,000
tonne
For twelve months
Changes
ended 31 December
2019 2018
(%)
---
Ethylene 12,493 11,512 8.5
---
Synthetic resin 17,244 15,923 8.3
---
Synthetic fiber rubber 1,047 896 16.9
---
Synthetic fiber monomer and polymer 10,029 9,343 7.3
---
Synthetic fiber 1,289 1,218 5.8
---
Note: Includes 100% of the production of domestic joint ventures.
Research and Development
In 2019, with the emphasis on innovation-driven strategy, the Company accomplished notable results in deepening reform of R&D mechanism, promoting innovation platforms such as joint R&D centers and incubators, and making breakthrough in key and frontier technologies. In upstream, research in gas enrichment theory and exploration technologies of marine phase medium and large gas fields in Sichuan Basin made headway, leading to breakthrough in gas reserve. Our proprietary rotary steering drilling system was successfully applied in Shengli oilfield. In refining, we developed various formulations for low sulphur fuel oil and passed engine tests and endurance tests. Our high-grade gasoline and diesel engine oil met the latest international standards and realised industrial production and commercialization. In chemicals, the start-up of the second generation high-efficiency and environment-friendly aromatics facilities was successfully started up. The anthraquinone method of producing hydrogen peroxide in fluidised-bed reactor and PPTA technology realised industrialization. In addition, the framework type code of a novel structured zeolite SCM-15 synthesised by us has been approved by the Structure Commission of International Zeolite Association. In 2019, the Company had 6,160 patent applications at home and abroad, among which 4,076 were granted. We also won six second prizes of National Sci-Tech Progress and one second prize of NationalTechnology Invention, and one gold, three silver and three excellent prizes of National Patent Awards.
Health, Safety, Security and Environment
In 2019, the Company constantly promoted and fully implemented the HSSE management system. We enhanced overall health management, and established safeguarding mechanism for occupational, physical and psychological health. We surveyed and rectified safety hazards, took stringent measures to control risks and supervise safety and operations of contractors, and achieved sound results. We upgraded our capacity in all-dimension risk prevention and control as well as emergency response, further enhancing security management. In 2019, we actively practiced green and low-carbon growth strategy, further promoted the green enterprise campaign and ecological conservation, and accomplished all emission reduction targets. Compared with 2018, energy consumption per 10,000 yuan of output was down by 0.4%, industrial fresh water usage was down by 1.1%, COD of discharged water down by 2.1%, and SO2 emissions down by 3.9%. All solid waste was properly treated. For more detailed information, please refer to "Communication on Progress for Sustainable Development 2019 of Sinopec Corp."
Capital Expenditures
In 2019, focusing on quality and profitability of investment, the Company continuously optimised its capital projects, with total capital expenditures of RMB 147.1 billion. Capital expenditure for the exploration and production segment was RMB 61.7 billion, mainly for Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas projects, phase I of Xinqi gas pipeline, phase I of Erdos-Anping-Cangzhou gas pipeline, Qingdao-Nanjing gas pipeline, Wen 23 and Jintan gas storage projects, as well as overseas projects. Capital expenditure for the refining segment was RMB 31.4 billion, mainly for Zhongke Refining and Petrochemical project, Zhenhai, Tianjin, Maoming and Luoyang refining upgrading projects. Capital expenditure for the marketing and distribution segment was RMB 29.6 billion, mainly for construction of service stations, oil products depots, pipelines and non-fuel business. Capital expenditure for the chemicals segment was RMB 22.4 billion, mainly for Zhongke, Zhenhai, Gulei and Hainan projects, ethylene revamping for Sinopec-SK and Sinopec-SABIC projects, phase II of Hainan high-efficiency and environment-friendly aromatics project, Sinopec-SABIC polycarbonate project and Zhongan coal chemical project. Capital expenditure for corporate and others was RMB 2 billion, mainly for R&D facilities and information technology projects.
Business Prospects
In 2020, despite the increasing instability and uncertainty of the international political and economic situation, and the inevitable impact on China's economy by coronavirus outbreak in the short term, we expect the fundamentals sustaining sound economic growth in China to remain unchanged. Domestic demand for energy and chemical products will be relatively weak in the first half, but the accumulated demand is expected to be released rapidly after outbreak. Considering oil-producing countries' abundant supply capacity, global demand growth, inventory levels, and geopolitics, we expect that the international oil prices will fluctuate at a low level.
In 2020, adhering to the principles of "reform, management, innovation, and development", the Company will focus on optimisation of the entire business value chain, as well as market expansion, risk prevention, and seizing opportunities so as to do our best to reduce the negative impact of the coronavirus outbreak and the slump of crude oil price, and strive to achieve healthy business performance. Due to the outbreak, the adjustment of the Company's production plan for 2020 is currently underway. We will confirm the production plan according to the market trends in the future.
Exploration and Production, under the low oil price circumstance, we will optimise projects implementation, enhance high-quality exploration, and reduce cost and expenditure to expand resource base and realize sustainable development. In crude oil development, more efforts will be made in promoting capacity building of Shunbei Oilfield, Tahe Oilfield, and the Oilfield at the western margin of the Junggar Basin, and we will strengthen profit-oriented development of mature fields. In natural gas development, we will accelerate capacity construction of key projects, and promote integration of production, supply, storage and marketing so as to maximize the value of the business chain. Preliminarily, we plan to keep a stable production volume of curde oil and realise a positive growth for nature gas.
Refining, under low oil price circumstance, with the coordination of production and sales, domestic and overseas markets, the Company will optimize utilization rate and production scheduling, and promote efficient operation of its refining business chain. We will optimize the allocation of crude oil, coordinate crude oil supply chain, and reduce procurement costs. More efforts will be made in restructuring product slate, increasing products tailoring for market demand and changes. We will accelerate low-sulfur bunker fuel projects and the revamping of storage and transportation facilities to rapidly expand market share.
Marketing and Distribution, balancing volume and profit, and leveraging the advantages of integration of production and sales, the Company will continuously improve the quality of its operations. We will vigorously carry out targeted and differentiated marketing to continuously improve our services with focus on customer need. We will accelerate the construction of smart service stations, coordinate the layout of natural gas and hydrogen stations, and consolidate and expand network advantages. More efforts will be made in boosting innovation in non-fuel business models, vigorously developing proprietary brands, creating differentiated competitive advantages, so as to drive rapid growth in non-fuel business.
Chemicals, the Company will focus on the "basic + high-end" development concept, speed up advanced capacitybuilding, continuously deepen structural adjustment, and improve our competitiveness and profitability. We will optimize facilities and product chain, and improve utilization rate and production scheduling based on market demand. Efforts will be made in adjusting feedstock slate to improve product yield and reduce cost. We will coordinate production, marketing, research and application, and redouble our efforts in developing new products and increase the production of high value-added products. Meanwhile, we will improve targeted marketing and services, enhance e-commerce platforms, actively explore overseas markets and continuously expand market share.
Research and Development, we will continue to implement the innovation-driven development strategy, deepen mechanism reform, accelerate key technology breakthrough, improve innovation capabilities to strive for quality development. In oil and gas exploration and development, we will strive to make technology breakthrough in ultra-deep oil and gas, tight oil and gas, shale oil and gas, etc. In refining, we will accelerate the research of heavy oil processing, oil quality upgrading, and promote the application of technologies such as needle coke. In chemicals, we will continuously improve the package technologies of ethylene and aromatics, strengthen the research and development of photoelectric materials and degradable materials, and accelerate the industrialization of large-tow high-performance carbon fibers. At the same time, we will focus on advancing research on cutting-edge technologies and new areas to achieve future business development through technology innovation.
Capital Expenditures, preliminary capital expenditures for the year 2020 are budgeted at RMB 143.4 billion. We will dynamically optimise capital projects based on future market trends. Preliminarily, RMB 61.1 billion will be invested in exploration and production with focuses on the production capacity building of Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas field, and the construction of natural gas pipelines and storage facilities as well as overseas oil and gas projects. The refining segment will account for RMB 22.4 billion, mainly on the construction and commissioning of the Zhongke project, and structural adjustment projects of Zhenhai, Tianjin, Maoming, Luoyang. RMB 22.0 billion is budgeted for marketing and distribution with emphasis on service stations, depots and storage facilities for refined oil products, pipelines and non-fuel business. The share for chemicals will be RMB 32.3 billion which will be used on the construction of Zhongke, Zhenhai and Gulei projects, ethylene revamping of Sinopec-SK and Sinopec-SABIC projects, Sinopec-SABIC polycarbonate project, Jiujiang aromatics project and Zhong An coal chemical project. The capital expenditure for corporate and others will be RMB 5.6 billion, mainly for R&D facilities and information technology projects.
Appendix: Key financial data and indicators
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE
Principal accounting data
Items
For twelve months
Changes
ended 31 December
over the same
period of the
preceding year (%)
---
2019 2018
(RMB million)
(RMB million)
---
Operating income 2,966,193 2,891,179 2.6
---
Net profit attributable to equity shareholders 57,591 63,089 (8.7)
of the Company
---
Net profit attributable to equity shareholders 54,271 59,630 (9.0)
of the Company
after deducting extraordinary gain/loss items
---
Net cash flows from operating activities 153,420 175,868 (12.8)
---
At 31 December 2019
At 31 December 2018
Change from the
end of last year (%)
(RMB million)
(RMB million)
Total equity attributable to equity 739,169 718,355 2.9
shareholders of the Company
---
Total assets 1,755,071 1,592,308 10.2
---
Principal financial indicators
Items For twelve months
Changes
ended 31 December
over the same
period of the
preceding year (%)
---
2019 2018
(RMB)
(RMB)
--- ---
Basic earnings per share 0.476 0.521 (8.7)
---
Diluted earnings per share 0.476 0.521 (8.7)
---
Basic earnings per share after deducting 0.448 0.493 (9.1)
extraordinary gain/loss items
---
Weighted average return on net assets (%) 7.90 8.67
(0.77) percentage
points
---
Weighted average return on net assets after 7.45 8.20
(0.75) percentage
deducting extraordinary gain/loss items (%) points
---
Net cash flow from operating activities per 1.267 1.453 (12.8)
share
---
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS
Principal accounting data
Items
For twelve months
Changes
ended 31 December
over the same
period of the
preceding year (%)
---
2019 2018
(RMB million)
(RMB million)
---
Operating Profit 86,198 82,264 4.8
---
Net profit attributable to owners of the 57,465 61,618 (6.7)
Company
---
Net cash generated from operating activities 1.267 1.453 (12.8)
---
At 31 December 2019
At 31 December 2018
Change from the
end of last year (%)
(RMB million)
(RMB million)
Equity attributable to owners of the Company 738,150 717,284 2.9
---
Total assets 1,755,071 1,592,308 10.2
---
Principal financial indicators
Items For twelve months
Changes
ended 31 December
over the same
period of the
preceding year (%)
---
2019 2018
(RMB)
(RMB)
--- ---
Basic earnings per share 0.475 0.509 (6.7)
---
Diluted earnings per share 0.475 0.509 (6.7)
---
Return on capital employed (%) 8.99 9.25
(0.26) percentage
points
---
The following table sets forth the operating revenues, operating expenses and operating profit / (loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between 2019 and 2018.
For twelve months
Changes
ended 31 December
2019 2018
--- ---
(RMB million)
(%)
---
Exploration and Production Segment
---
Operating revenues 210,712 200,191 5.3
---
Operating expenses 201,428 210,298 (4.2)
---
Operating profit / (loss) 9,284 (10,107)
---
Refining Segment
---
Operating revenues 1,224,156 1,263,407 (3.1)
---
Operating expenses 1,193,524 1,208,580 (1.2)
---
Operating profit 30,632 54,827 (44.1)
---
Marketing and Distribution Segment
---
Operating revenues 1,430,963 1,446,637 (1.1)
---
Operating expenses 1,401,856 1,423,173 (1.5)
---
Operating profit 29,107 23,464 24.0
---
Chemicals Segment
---
Operating revenues 495,234 546,733 (9.4)
---
Operating expenses 478,083 519,726 (8.0)
---
Operating profit 17,151 27,007 (36.5)
---
Corporate and others
---
Operating revenues 1,484,822 1,368,583 8.5
---
Operating expenses 1,484,758 1,377,876 7.8
---
Operating profit / (loss) 64 (9,293)
---
Elimination of inter-segment (loss) (40) (3,634)
---
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.
Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a 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.
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SOURCE China Petroleum & Chemical Corporation
