China Petroleum & Chemical Corporation 1H 2007 Results Announcement August 27, 2007 Hong Kong.
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Transcript of China Petroleum & Chemical Corporation 1H 2007 Results Announcement August 27, 2007 Hong Kong.
China Petroleum & Chemical Corporation
1H 2007 Results Announcement
August 27, 2007Hong Kong
2007-08-27 2
Disclaimer
This presentation and the presentation materials distributed herein include 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, 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
price fluctuations, actual demand, exchange rate fluctuations, exploration and
development outcomes, estimates of proven reserves, market shares, competition,
environmental risks, changes in legal, financial and regulatory frameworks, international
economic and financial market conditions, political risks, project delay, project approval,
cost estimates and other risks and factors beyond our control. In addition, Sinopec Corp.
makes the forward-looking statements referred to herein as of today and undertakes no
obligation to update these statements.
2007-08-27 3
Agenda
1H 2007 Overview
1H 2007 Operational Results
2H 2007 Operational Plan
1H 2007 Overview
2007-08-27 5
Review of Market Environment
China’s economy maintained steady and rapid growth, GDP increased by 11.5%
Domestic consumption of refined oil products grew by 4.2%
Domestic ethylene-equivalent consumption grew by 8.4%
International crude prices first declined and rose later
Chemical product prices remained high
Domestic refined oil products prices still tightly controlled
2007-08-27 6
Operational Overview
1H 2007 1H 2006 Change%
Crude oil production (mm bbls) 143.88 140.89 2.12
Natural gas production (bcf) 139.55 126.20 10.58
Refinery throughput (mm tonnes) 76.25 71.68 6.38
Domestic sales of refined oil products
(mm tonnes)
57.92 54.32 6.63
Incl. Retail (mm tonnes) 36.01 34.74 3.66
Ethylene production* (1,000 tonnes) 3,273 3,031 7.98
*Includes 100% production from YPC-BASF and Shanghai-Secco.
2007-08-27 7
Profit Growth
RMB million 1H 2007 1H 2006 Change%
Turnover and other revenues 566,830 491,221 15.39
EBITDA 72,599 50,437 43.94
EBIT 53,346 34,389 55.13
Net profit attributable to shareholders of the Company 36,190 21,870 65.48
EPS (RMB) 0.417 0.252 65.48
2007-08-27 8
Financial Position
RMB million 1H 2007 1H 2006
Net cash flow from operating activities 61,636 19,069
Net cash flow used in investing activities (46,316) (56,181)
Net cash flow (used in)/ generated from financing activities
(12,306) 32,532
RMB million As of 30 Jun. 2007 As of 31 Dec. 2006
Short-term debts 47,036 52,824
Long-term debts 70,592 61,617
Equity attributable to shareholders of the Company
289,614 262,845
2007-08-27 9
8.3%
13.1%12.2%
0%
3%
5%
8%
10%
13%
15%
2005 2006 1H 2007
ROCE and Dividend
ROCE
Note: ROCE for 1H 2007 is not annualized
Dividend Per Share
RMB Yuan
0.04 0.04 0.05
0.09
0.11
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
2005 2006 1H 2007
Interim Final
1H 2007 Operational Results
2007-08-27 11
E&P- Operational Summary
1H 2007 1H 2006 Change%
Crude oil production (mm bbls) 143.88 140.89 2.12
Natural gas production (bcf) 139.55 126.2 10.58
Lifting cost (RMB/tonne) 550 487 12.94
Newly added proved reserves of crude oil (mm bbls) 147.88 143.89 2.77
Newly added proved reserves of natural gas (bcf) 158.63 175.5 (9.61)
Jun 30. 2007
Dec 31. 2006
Change%
Proved reserves of crude oil (mm bbls) 3,299 3,295 0.12
Proved reserves of natural gas (bcf) 2,875.8 2856.7 0.67
Proved reserves of oil and gas (mm boe) 3,778.3 3,771.1 0.19
2007-08-27 12
E&P- Segment Performance
Crude Oil and Natural Gas Realized price
EBIT of E&P Segment
Crude OilRMB/tonne
Natural GasRMB/’000 cubic meter
34,533
22,750
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
1H 2006 1H 2007
3,3102,792
800748
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1H 2006 1H 2007
0
100
200
300
400
500
600
700
800
900
Crude Oil Natural Gas
RMB million
2007-08-27 13
Refining- Operational Summary
1H 2007 1H 2006 Change%
Refinery throughput (mm tonnes) 76.25 71.68 6.38
Gasoline production (mm tonnes) 12.16 11.23 8.28
Diesel production (mm tonnes) 28.92 28.32 2.12
Kerosene production (mm tonnes) 4.10 3.18 28.93
Light chemical feedstock production (mm tonnes)
12.09 11.47 5.41
Light yield (%) 74.49 74.81 (32bps)
Refining yield (%) 93.70 93.73 (3bps)
2007-08-27 14
Refining- Segment Performance
EBIT of Refining SegmentRefining Margin /
Cash Operating Cost
Refining Margin(RMB/tonne)
Cash Operating Cost(RMB/tonne)
260
(93)
140118
-150
-100
-50
0
50
100
150
200
250
300
1H 2006 1H 2007
-150
-100
-50
0
50
100
150
Refining Margin Cash Operating Cost
5,492
(16,626)-20,000
-15,000
-10,000
-5,000
0
5,000
10,000
1H 2006 1H 2007
RMB million
2007-08-27 15
Marketing- Operational Summary
1H 2007 1H 2006 Change%
Domestic sales of refined oil product (mm tonnes) 57.92 54.32 6.63
Incl. Retail (mm tonnes) 36.01 34.74 3.66
Distribution (mm tonnes) 10.15 9.69 4.75
Total number of service stations 28,898 29,198 (1.03)
Incl. Company-operated 28,153 27,628 1.90
Franchised 745 1,570 (52.55)
Annualized throughput of company-operated stations
(tonnes/station)2,558 2,515 1.71
2007-08-27 16
Marketing- Segment Performance
EBIT of Marketing SegmentRON #90 Gasoline Guidance PriceRMB/Tonne
#0 Diesel Guidance PriceRMB/Tonne
RMB/tonne 1H 2006 1H 2007
Marketing cash operating cost
149.75 171.80
RMB million
10,761
16,795
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
1H 2006 1H 2007
2,000
3,000
4,000
5,000
6,000
Jan Mar May Jul Sep Nov
2005 2006 2007
2,000
3,000
4,000
5,000
6,000
Jan Mar May Jul Sep Nov
2005 2006 2007
2007-08-27 17
Chemicals- Operational Summary
Unit: 1,000 tonnes 1H 2007 1H 2006 Change%
Ethylene* 3,273 3,031 7.98
Synthetic resin* 4,767 4,184 13.93
Monomers & polymers for synthetic fibers 3,938 3,577 10.09
Synthetic fiber 718 770 (6.75)
Synthetic rubber 360 318 13.21
Urea 813 906 (10.26)
*Includes 100% production from YPC-BASF and Shanghai-Secco.
2007-08-27 18
Chemicals- Segment Performance
EBIT of Chemicals SegmentChemicals Price Spread (2002 – Jul. 2007)
USD/tonne
RMB million
6,176
8,542
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
1H 2006 1H 2007
RMB/tonne IH 2006 1H 2007
Ethylene cash operating cost
1,262 1,320
0
100
200
300
400
500
600
700
800
900
1,000
Jan-2002 Jan-2003 Jan-2004 Jan-2005 Jan-2006 Jan-2007
LDPE-Naphtha PP-Naphtha
2007-08-27 19
Energy consumption per unit of production decreased by 3.95%
Energy consumption per unit of production for E&P segment decreased by 4.72%
Energy consumption per unit of production for Refining segment increased by 0.28%
Energy consumption of ethylene units decreased by 1.02%
Fresh water consumption and water discharge reduced substantially
Fresh water consumption reduced by 5%
Wastewater discharge reduced by 7%
COD in wastewater reduced by 15%
Environmental Record
2007-08-27 20
Effective Cost Control
RMB million
2,600
1,484
0
500
1,000
1,500
2,000
2,500
3,000
2007 plan 1H 2007 Actual
E&P Refining Marketing Chemicals
1H 2007 Cost Saving
2007-08-27 21
Capital Expenditure
33,746
110,060
0
20,000
40,000
60,000
80,000
100,000
120,000
2007 plan 1H 2007 Actual
E & P RefiningMarketing ChemicalsCorporate & Others
E&P: RMB 18.28 billion. Newly added production capacity of crude oil was 2.27 million tonnes per year and that of natural gas was 719 million cubic meters per year,
Refining: RMB 6.18 billion. Upgrade of Yanshan project was completed; Qingdao project progressed smoothly; Tianjin-Yanshan crude oil pipeline was completed.
Marketing and Distribution: RMB 4.92 billion. Construction of pipeline for refined oil products in Beijing was completed; newly added 307 stations.
Chemicals: RMB 3.30 billion. Tianjin ethylene, Zhenhai ethylene and Fujian Ethylene projects progressed smoothly
1H 2007 Capex
RMB million
2H 2007 Operational Plan
2007-08-27 23
Market Environment for 2H2007
China’s economy is expected to maintain rapid growth
Demand for oil products and petrochemicals will increase steadily
International crude oil prices will remain high
Refining business will still be under pressure
Petrochemical product prices will remain at a relative high level
2007-08-27 24
2H 2007 Operation Estimates
2H Estimate FY 2007E
Crude oil production (mm tonnes) 20.74 41.00
Natural gas production (bcm) 4.05 8.00
Refinery throughput (mm tonnes) 78.25 154.50
Total domestic sales of refined oil products (mm tonnes) 59.08 117.00
Ethylene production (mm tonnes) 3.27 6.54
2007-08-27 25
For Further Information
http://www.sinopec.com
Investor Relations
Beijing: Tel: (8610) 64990060 Fax: (8610) 64990489Email: [email protected]
Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669Email: [email protected]
New York: Tel: (212) 759 5085 Fax: (212) 759 6882Email: [email protected]
Media Relations
Tel: (8610) 64990092Fax: (8610) 64990093Email: [email protected]