2011 interim results - sinopec · 1h2011 m k t e i t china’s economy achieved steady and rapid...
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China Petroleum & Chemical CorporationChina Petroleum & Chemical Corporation
2011 Interim Results
August 29, 2011Hong Kong
Di l iDisclaimer
This presentation and the presentation materials distributed herein include forward-looking statements. All statements, other than statements of historical facts, thataddress activities, events or developments that Sinopec Corp. expects or anticipateswill or may occur in the future (including but not limited to projections, targets,estimates and business plans) are forward-looking statements. Sinopec Corp.'sactual results or developments may differ materially from those indicated by thesef d l ki t t t lt f i f t d t i ti i l diforward-looking statements as a result of various factors and uncertainties, includingbut not limited to price fluctuations, actual demand, exchange rate fluctuations,exploration and development outcomes, estimates of proven reserves, marketshares competition environmental risks changes in legal financial and regulatoryshares, competition, environmental risks, changes in legal, financial and regulatoryframeworks, international economic and financial market conditions, political risks,project delay, project approval, cost estimates and other risks and factors beyond ourcontrol. In addition, Sinopec Corp. makes the forward-looking statements referred toherein as of today and undertakes no obligation to update these statements.
2011-08-29 2
A dAgenda
1H2011 Performance Highlights
1H2011 Operational Results
2H2011 Operational Plan
2011-08-29 3
1H2011 Performance Highlights
1H2011 M k t E i t
China’s economy achieved steady and rapid growth with GDP up by 9 6%
1H2011 Market Environment
China’s economy achieved steady and rapid growth with GDP up by 9.6%
Domestic demand for oil products and chemical products increased steadily
Domestic apparent consumption of refined oil products grew by 7.2% pp p p g y % Domestic apparent consumption of ethylene equivalents increased by 1.9%
International crude oil prices increased significantly yoy
P i f d ti il d t i d t i d t ll d d it d Price of domestic oil products raised twice under controlled pace and magnitude
Chemical products price increased yoyDomestic max. retail price of Growth rate of domestic demand for
RMB/tonne USD/bblrefined oil productsrefined oil and chemical products
110
130
9,000
11,000
15%
20%
25%
30
50
70
90
5,000
7,000
RON90# gasoline0# diesel0%
5%
10%
15%
2011-08-29 5
10
30
3,000 09-1 09-5 09-9 10-1 10-5 10-9 11-1 11-5
Dubai crude(right)-5%
00 01 02 03 04 05 06 07 08 09 10 1H11GDP Oil Product Ethylene equivalents
O ti l Hi hli htOperational Highlights
Crude oil Production Natural Gas production Refinery throughput*
165.32 156.32150
200
200.55253.88
200250300 103.40 108.53
80100120
mm bbls bcf mm tonnesCrude oil Production Natural Gas production Refinery throughput
0
50
100
050
100150
0204060
1H2010 1H2011Africa China
1H2010 1H2011 1H2010 1H2011
Refined oil product production* Oil product sales volume Ethylene production*
60.52 63.4060
80
10071.59 80.42
60
80
100
4,2025,015
400050006000
mm tonnes mm tonnes m tonnes
p p p y p
0
20
40
60
0
20
40
60
0100020003000
* Including 100% production of joint ventures
1H2010 1H2011Gasoline Diesel Kerosene
1H2010 1H2011 1H2010 1H2011
2011-08-29 6
ProfitabilityProfitability
Record high 1H revenue and profit Record high 1H revenue and profit
Turnover and other operating revenues increased by 31.5% yoy Net profit attributable to shareholders of the Company increased by 11.9% yoy
Basic earnings per share were RMB 0.475
Interim dividend of RMB 0.10 per share declared, an increase of 25.0% yoy
1 400 41 245RMB billionRMB billion 0.25
RMB
Turnover and otheroperating revenues
Net Profit Dividend per share
937.7
1,233.3
8001,0001,2001,400
36.841.2
2530354045
0.130.15
0.20
0200400600
05
101520
0.08 0.10
0.00
0.05
0.10
01H2010 1H2011
01H2010 1H2011
2010 2011Interim Final
2011-08-29 7
Fi i l P itiFinancial Position
RMB million 1H2010 1H2011
Net cash generated from operating activities 55,563 30,570
Net cash used in investing activities (39,510) (55,030)
Net cash (used in) / generated from financing activities (9,557) 16,130
RMB million As of As ofRMB million Dec 31, 2010 Jun 30, 2011
Short-term debt 17,019 56,642
Long-term debt 136,465 125,220Long term debt 136,465 125,220
Total equity attributable to shareholders of the Company 419,604 452,962
82011-08-29
C it l E ditCapital Expenditure
E&P: RMB17.4 billion, mainly for crude oil production capacity addition, natural gas exploration and development and Shandong LNG projectsRMB million
1H2011 CAPEX: RMB33.6 billion
124,129
100,000
120,000
140,000 Shandong LNG projects
Refining: RMB3.7 billion, mainly for oil product quality upgrading, refineries revamping, and crude oil pipeline
t ti
33 56740 000
60,000
80,000
,construction
Marketing: RMB9.5 billion, mainly for the construction of service stations, oil depots, and product transportation33,567
0
20,000
40,000
2011 E 1H2011 A
depots, and product transportation networks. Added 786 stations
Chemicals: RMB2.1 billion, mainly for Wuhan ethylene project and ZhongyuanMTO j t2011 E 1H2011 A
E&P RefiningMarketing ChemicalsCorporate and others
MTO project
Corporate and others: RMB0.9 billion
2011-08-29 9
Safety, Environment Protection, Energy S i & E i i R d tiSavings & Emissions Reduction
Safety and environment protection always our first priority
Strengthen implementation of HSE system
Overall sound safety and environment protection performance Overall sound safety and environment protection performance
Active in Energy Saving & Emission Reduction
E ti it t t d d b 3 8% Energy consumption per unit output reduced by 3.8% yoy
COD in wastewater discharge reduced by 9.2% yoy
Sulfur dioxide emissions reduced by 10.0% yoy Sulfur dioxide emissions reduced by 10.0% yoy
102011-08-29
1H 2011 Operational Results
Remarkable Results from Unconventional E l tiExploration
Experiments in multi stage horizontal well fracturing in tight sandstone Experiments in multi-stage horizontal-well fracturing in tight sandstone reservoir showed significant progress
Multi-stage horizontal-well fracturing in Zhenjing oilfield, Daniudi gas field in Ordos Basin achieved great resultsOrdos Basin achieved great results
Well HH37P2 in Zhenjing oilfield Thickness of He 1-1 sandstone in Daniudi
DP27H
Well HH37P2
122011-08-29
B kth h i E l tiBreakthroughs in Exploration
Hashan shallow bed in north Junggar Hashan shallow bed in north JunggarBasin
Shun 9 well at Silurian system in Tarim
Haqian 1 in Junggar
Wujiaping formation in Yuanba marine facies
Zhangwu 2 in the outskirts of south Songliao Basin
Natural gas in shallow bed in west Sichuan
Shun 9 in Tarim
Shun 9
1. HashanZhangwu
Yuanba
West Sichuan
132011-08-29
F th P i E l tiFurther Progress in Exploration
Subtle reservoir in Jiyang trough Subtle reservoir Subtle reservoir in Jiyang trough
Ordovician carbonate in Tahe Basin
Reef-flat facies gas in Yuanba
Subtle reservoir in Jiyang trough
g
Carbonate in Yubei
Exploration in Ordos
Exploration in west Junggar
Unconventional oil and gas exploration
Shale oil in Biyang trough
Tahe
Junggar
Anshen1
Yuanba
Ordos JiyangYubei
Biyang
142011-08-29
E&P O ti SE&P – Operating Summary
1H 2010 1H 2011 Change (%)
Crude oil production (mm bbls) 165.32 156.32 (5.4)
China 149 19 150 22 0 7China 149.19 150.22 0.7
Overseas 16.13 6.10 (62.2)
Natural gas production (bcf) 200.55 253.88 26.6
Lifting cost (USD/bbl) 12.37 14.34 15.9
2011-08-29 15
E&P S t P fE&P – Segment Performance
95.67 100 120 USD/bbl
RMB million
Realized price of crude oil Operating profit
27,533
34,651
30 000
40,000 71.73
020 40 60 80
RMB million
20,000
30,000 0 1H2010 1H2011
Realized price of natural gas
10,000 4.39
5.54
45 6
USD/mcfRealized price of natural gas
0 1H2010 1H2011
0 1 2 3 4
2011-08-29 16
1H2010 1H2011
R fi i O ti SRefining – Operating Summary
( illi t )(million tonnes) 1H2010 1H2011 Change (%)
Refinery throughput 103.40 108.53 5.0
G li di l d k d ti 60 52 63 40 4 8Gasoline, diesel and kerosene production 60.52 63.40 4.8
Gasoline 17.77 18.18 2.3
Di l 36 72 38 44 4 7Diesel 36.72 38.44 4.7
Kerosene incl. jet fuel 6.03 6.77 12.3
Li ht h i l f d t k d ti 17 15 18 57 8 3Light chemical feedstock production 17.15 18.57 8.3
Light yield (%) 75.60 76.26 66 bps
R fi i i ld (%) 94 65 95 30 65 bRefining yield (%) 94.65 95.30 65 bps
Refinery throughput is converted at 1 tonne to 7.35 barrels Including 100% production of joint ventures
17
g p j
2011-08-29
R fi i S t P fRefining – Segment Performance
4.72 6.00 USD/barrel
RMB million
Refining margin Operating profit
5,743
3,000
7,000 1.54
0 00
2.00
4.00 RMB million
-1,000
0.00 1H2010 1H2011
Cash operating cost
-9,000
-5,000
2.64 2.84 3.00
4.00
p gUSD/barrel
-12,169-13,000 1H2010 1H2011
0.00
1.00
2.00
182011-08-29
1H2010 1H2011
M k ti O ti SMarketing – Operating Summary(million tonnes) 1H 2010 1H 2011 Change (%)
Total sales of refined oil products 71.59 80.42 12.3
Domestic sales of refined oil products 68.15 75.10 10.2
Retail 41.70 50.20 20.4
Distribution 15.70 15.89 1.2
Wholesale 10 75 9 01 (16 2)Wholesale 10.75 9.01 (16.2)
Annualized average throughput of self-operated stations (tonnes/station)
2,841 3,341 17.6
As of 31 Dec. 2010
As of 30 Jun. 2011 Change (%)
Total number of domestic service stations 30,116 30,399 0.9
Company-operated stations 29,601 30,050 1.5
Franchised stations 515 349 (32.2)
2011-08-29 19
M k ti S t P fMarketing – Segment Performance
25 000
销售板块经营收益
4 500
销售板块经营收益
RMB million RMB million
Non-fuel business revenue Operating Profit
14 450
19,59820,000
25,000
2 642
3,980
3,000
3,500
4,000
4,500
14,450
10,000
15,000 2,642
1,500
2,000
2,500
,
0
5,000
0
500
1,000
1H2010 1H20111H2010 1H2011
RMB/tonne 1H2010 1H2011
20
Cash operating cost 160 179
2011-08-29
Ch i l O ti SChemicals – Operating Summary
Production volume (thousand tonnes) 1H2010 1H2011 Change (%)
Ethylene 4,202 5,015 19.3
Synthetic resins 6,088 6,834 12.3
Monomers and polymers for synthetic fibers 4,275 4,744 11.0
Synthetic fibers 676 705 4.3
Synthetic rubbers 485 526 8.5
Urea 932 413 (55.7)
Including 100% production of joint venturesg p j
212011-08-29
Ch i l S t P fChemicals – Segment Performance
Operating profit300
RMB million
Chemical Product Price Index
16,344
16,000
20,000
200
250 RMB million
8,339
8 000
12,000
100
150
4,000
8,000
0
50
0 1H2010 1H2011
Index Difference CPPINaphtha Price Index
222011-08-29
2H2011 Operational Planp
P t f 2H2011Prospects for 2H2011
Increased instabilities and uncertainties over the recovery of global economy
China’s economy is expected to maintain its steady growth
International crude oil prices are expected to become more volatile
Domestic demand for refined oil products and chemicals is expected to grow
2011-08-29 24
O ti l Pl f 2H2011Operational Plan for 2H2011
2H2011 E 1H2011 A FY2011 E AnnualChange(%)
Crude oil production (mm bbls) 165 156 321 (2 1)Crude oil production (mm bbls) 165 156 321 (2.1)
China 153 150 303 0.3
Overseas 12.4 6.10 18.5 (27.9)
Natural gas production (bcf) 247 254 501 13.5
Refinery throughput (mm tonnes) 114 108 222 5.1
Total domestic sales of refined oil d t ( t ) 75 75 150 6.8products (mm tonnes)
Ethylene production (thousand tonnes) 4,845 5,015 9,850 8.7
252011-08-29
F F th I f tiFor Further Information
http://www.sinopec.com
Investor RelationsBeijing: Tel: (8610) 59960028 Fax: (8610) 59960386
Email: [email protected]
Media RelationsTel: (8610) 59960028
@ p
Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669Email: [email protected]
Fax: (8610) 59960386
Email: [email protected]
New York: Tel: (212) 759 5085 Fax: (212) 759 6882Email: [email protected]
2011-08-29 26