1 china petroleum & chemical corporation q1 2003 results announcement april 29, 2003
TRANSCRIPT
1
China Petroleum & Chemical CorporationQ1 2003 Results Announcement
April 29, 2003
3
Agenda
• Performance Review of Q1 2003
• Operational Plan for Q2 2003
4
Performance Review of Q1 2003
5
Market Environment in Q1 2003
• GDP growth rate of 9.9%
• Prices of crude oil and refined oil products remain relatively high
• Significant increase in chemical prices on yoy basis
• Market environment of domestic refined oil products further improved
6
Results of Operation- Significant Earnings Growth
RMB Bn
Revenue
EBITDA
EBIT
Net Profit
EPS (RMB)
66.00
7.52
1.61
0.54
0.006
101.89
16.54
9.05
5.99
0.07
55.6
580.3
1084.5
1084.5
127.0
Q1 ’03Q1 ’02 Q4 ’02Q1’03/Q1’02
Variance(%)
102.72
10.97
6.42
0.07
17.06
7
Cash and Cash Equivalent – Ending Balance
Net Cash Flow from Financing Activities
Net Cash Flow from Investing Activities
Net Cash Flow from Operating Activities
4.1Shareholders’ Equity
7.7Long-term Debt
- 15.7
154.5
75.2
35.6Short-term Debt
As ofDec. 31 2002RMB Bn
Sound Financial Position and Strong Cash flow
Variance(%)
As ofMar. 31, 2003
Q1 ’03
21.1
0.4
-9.4
12.4
160.9
81.0
30.0
8
E & P - Production Increase
Crude Realized Price (USD / bbl)
Gas Realized Price (USD/kcf)
Crude Production (MM bbl)
Gas Production (bcf)
30.0
2.11
65.94
44.5
Q1 ’03
17.2
2.08
65.91
41.8
Q1 ’02
25.9
1.93
68.28
46.9
Q4 ’02Q1’03/Q1’02
variance(%)
74.4
1.4
0.1
6.5
9
30.0
25.9
17.2
2.11
2.08
1.93
15
18
21
24
27
30
33
Q1 02 Q4 02 Q1 03
1.50
1.70
1.90
2.10
2.30
2.50
Crude Gas
E & P – Significant Earnings Growth
Realized Prices of Crude and Gas
(RMB MM)
E & P Segment EBIT
Crude (USD/bbl) Gas (USD/kcf)
5,617
4,110
2,030
0
2,000
4,000
6,000
8,000
Q1 02 Q4 02 Q1 03
10
Refining -Adjust Product Mix, Rationalize throughput
Crude Oil throughput (kt) 23,940 28,030
Gasoline Production (kt) 4,240 5,348
Diesel Production (kt) 8,829 9,732
Kerosene Production (kt) 1,030 1,442
Light Yield (%) 72.66 72.95
Refining Yield (%) 91.79 92.36
Chemical Feedstock Production (kt) 3,466 3,702
27,540
5,120
9,871
1,408
74.30
92.64
4,200
Q1 ’03Q1 ’02 Q4 ’02Q1’03/Q1’02
variance(%)
15.0
20.8
11.8
36.9
164bps
85bps
21.2
11
Refining – Earnings Increased Yoy
Refining Margin
(USD/bbl)
Refining Segment EBIT
(RMB MM)
1,195
-412
2,506
-1,000
-500
0
500
1,000
1,500
2,000
2,500
3,000
Q1 02 Q4 02 Q1 03
4.99
3.76
3.21
0.00
1.00
2.00
3.00
4.00
5.00
Q1 02 Q4 02 Q1 03
Refining Margin
12
Maketing –Increased Volume, Optimized Structure
Owned and Operated
Franchised
Annual Throughput Per Station (tonne/site)
Wholesale (kt)
Distribution (kt)
Retail (kt)
Domestic Sale of Refined Product (kt)
Total No. of Gas Stations
6,010
3,380
7,940
17,340
24,107
4,184
1,485
28,291
5,912
3,049
9,011
17,972
24, 000
4,127
1,605
28,127
5,579
3,283
8,952
17,814
28,894
24,065
4,829
1,628
Q1 ’03Q1 ’02 Q4 ’02Q1’03/Q1’02
variance(%)
- 7.2
- 3.0
12.7
2.7
2.1
- 0.2
15.4
9.6
13
Domestic RON 90# Gasoline Guidance Price
Marketing – Sustainable Earnings Growth
2500
3000
3500
4000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2002 2003
2000
2500
3000
3500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2002 2003
754
2,480
3,816
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Q1 02 Q4 02 Q1 03
Marketing Segment EBIT
(RMB MM)(RMB MM)
(RMB/Tonne)
(RMB/Tonne)
Domestic 0# Diesel Guidance Price
14
Chemical – Increased Volume
In kt
Q1 ’03Q1 ’02 Q4 ’02 Q1’03/Q1’02variance(%)
Synthetic Fiber Monomer & Polymer 929.1 1,010.9 1,005.2 8.2
Ethylene 582.6 805.0 764.6 31.2
Synthetic Rubber 109.7 127.8 117.1 6.8
Urea 728.1 353.0 390.3 - 46.4
Synthetic Resin 881.5 1,165.7 1,134.6 28.7
Synthetic Fiber 275.1 307.8 299.1 8.7
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Chemical – Increased Profitability
Chemical Segment EBIT
(RMB MM)
667
242
-691-800
-600
-400
-200
0
200
400
600
800
Q1 02 Q4 02 Q1 03
Chemicals Price Spread(2000 through Mar 2003)
200250300350400450500550600650
J-00
M-00
M-00
J-00
S-00
N-00 J-01
M-01
M-01
J-01
S-01
N-01 J-02
M-02
M-02
J-02
S-02
N-02 J-03
M-03
LDPE-naphtha PP-naphtha
US$/t
16
Capital Expenditure
4.82
1.22
0.47
2.85
E & P RefiningMarketing Chemical
Total: RMB 9.36 Bn
RMB Bn • E & P – RMB 4,820MM, exploration breakthrough in the Eastern China area and significant discovery in the Western China. Newly added crude capacity 830 M tonnes/year
• Refining – RMB 1,220MM, some revamped facilities were put on stream. Crude oil pipeline construction on schedule
• Marketing – RMB 470MM, constructing and upgrading of sales network are progressing smoothly
• Chemicals – RMB 2,850MM, some revamped facilities were put on stream, the other projects are progressing smoothly
17
Operational Plan of for Q2 2003
18
Market Outlook for Q2
• Chinese economy will continue to maintain relatively high growth rate amid sluggish world economy, resulting in high domestic demand for oil and chemical products and provide favorable external environment for the Company’s operations
• Along with the end of Iraq War , international prices of crude oil, refined products and chemical products decline
• Market of Refined oil products shall sustain at fairly good condition
• Chemicals shall experience upturn at cyclical recovery in the long run
• Global economy will be in uncertainty, which bring about challenges to the operations of the Company
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Operational Plan of for 2Q
Crude Production MM Tonne
Gas Production bcm
Refining Throughput MM Tonne
Ethylene Production kt
Domestic Sale of Refined Products MM Tonne
Retail MM Tonne
MM Tonne
9.5
1.4
27.8
750
17.6
8.7
3.3
9.3
1.3
27.5
765
17.8
9.0
3.3
Q1 ’03 ActualQ2 ’03 Plan
Distribution
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