China Petroleum & Chemical Corporation
Q1 2005 Results Announcement
April 29, 2005
1
Market Environment in Q1
• Chinese economy maintained fast growth
• Domestic demand of oil and chemical products
sustained growth momentum
• Crude oil prices were volatile
• Prices of chemical products remained at high levels
3
Results of OperationSignificant Earnings Growth
1Q05
1Q04
Change %
(RMB million)
Revenue
174,127
129,608
34.35
EBITDA
24,970
21,526
16.00
EBIT
16,880
14,388
17.32
Profit after taxation
11,042
9,448
16.87
Minority Interests
1,405
1,142
23.03
9,637
8,306
16.02
0.111
0.096
16.02
Profit attributable to shareholders
of the parent
EPS (RMB/share)
4
Sound Financial Position
(RMB million)
At 31 March 2005
At 31 December 2004
Short-term Debt
37,154
32,307
Long-term Debt
69,906
60,822
202,677
193,040
Shareholders’ funds attributable to
shareholders of the parent
1Q05
Net Cash Flow from Operating Activities
12,793
Net Cash Flow used in Investing Activities
13,112
Net Cash Flow from Financing Activities
Cash and Cash Equivalent – Ending Balance
2,101
18,165
5
E&P
1Q05
Crude Production (‘000 tonnes)
Gas Production (billion cubic meters)
Crude Realized Price (RMB / tonne)
Gas Realized Price (RMB / ’000 cubic meters)
Lifting Cost (USD / bbl)
EBIT (RMB million)
1Q04
Change %
9,530.5
9,538.3
-0.08
1.469
1.395
5.30
2,127.29
1,678.63
26.73
655.36
606.47
8.06
6.47
6.37
1.57
6,394
4,545
40.68
Note: 1 tonne = 7.1 barrel ，1 cubic meter = 35.31 cubic feet
6
Refining - Adjusted Product Mix,
Increased Throughput
1Q05
1Q04
Change %
(million tonnes)
Crude Oil Throughput
34.33
32.37
6.05
5.82
5.73
1.57
13.11
12.04
8.89
Light Chemical Feedstock Production
4.99
4.53
10.15
Kerosene Production
1.68
1.48
13.51
Light Yield (%)
73.48
73.85
-37 bps
Refining Yield (%)
92.63
92.82
-19 bps
Gasoline Production
Diesel Production
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Refining Earnings
Refining Margin/
Cash Operating Cost
(USD/bbl)
Refining Segment EBIT
(RMB million)
(USD/bbl)
5
2.5
4.2
3,000
2,500
2,187
4
3.49
2,000
1,671
3
2.0
1,500
1.97
1,000
1.89
2
500
1
1.5
1Q04
Refining Margin
1Q05
0
1Q04
1Q05
Cash Operating Cost
8
Marketing –
Increased Volume, Optimized Structure
1Q05
1Q04
Change %
Domestic sales of refined oil
product (million tonnes)
24.13
21.70
11.20
Incl. Retail (million tonnes)
13.46
11.98
12.35
5.35
4.40
21.59
Total No. of gas stations (site)
30,164
30,416
-0.83
Incl. Owned and operated (site)
26,682
24,680
8.11
3,482
5,736
-39.30
2,018
1,757
14.85
Distribution (million tonnes)
Franchised (site)
Annual throughput per station (tonne/site)
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Marketing Earnings
Domestic RON 90# Gasoline
Guidance Price
(RMB/Tonne)
Marketing Segment EBIT
(RMB million)
5000
4000
5,000
3000
4,118
2000
Jan
Mar
May
2003
Jul
2004
Sep
Nov
2005
3,542
3,000
Domestic 0# Diesel
Guidance Price
(RMB/Tonne)
5000
4,000
2,000
4000
1,000
3000
2000
Jan
0
Mar
May
2003
Jul
2004
Sep
Nov
1Q04
1Q05
2005
10
Chemicals – Increased Volume
(‘000 tonnes)
1Q05
1Q04
Change %
Ethylene
1,121.8
1,041.5
7.71
Synthetic Resins
1,683.1
1,544.9
8.95
845.6
725.8
16.51
158.1
152.1
3.94
1,595.6
1,515.2
5.31
400.0
407.1
-1.74
195.1
133.7
45.92
388.3
541.5
-28.29
Incl. Performance Compound
Synthetic Rubber
Synthetic Fiber Monomer & Polymer
Synthetic Fiber
Incl. Differential Fiber
Urea
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Chemicals Earnings
Chemicals Segment EBIT
Chemicals Price Spread
(1990 through Mar 2005)
(RMB MM)
7,000
USD/tonne
1200
6,000
1000
5,000
5,911
4,175
800
4,000
600
3,000
400
2,000
200
LDPE-Naphtha
PP-Naphtha
1,000
0
Jan1990
Jan1992
Jan1994
Jan1996
Jan1998
Jan2000
Jan2002
Jan2004
0
1Q04
1Q05
12
Capital Expenditure
• E & P – Newly added crude production capacity
of 600 thousand tonnes/year and newly added
gas production capacity of 90 million cubic
meters/year
RMB million
E&P 4,451
Refining
1,256
Chemical
804
• Refining – the 2nd phase of Ningbo-ShanghaiNanjing crude pipeline is close to completion;
crude pipeline along the Yangzi River is under
construction; some revamping projects were on
schedule
• Chemicals –major chemical revamping projects,
incl. Maoming ethylene progressed smoothly
Corporate
& Others
129
Marketing
4,719
• Marketing – oil product pipeline in southwestern
China is close to completion and upgrading of
retail network progressed smoothly
• Corporate and Others –IT projects including ERP
Total：RMB11.359 billion
progressed smoothly
In addition, Capex for JV projects, incl. ShanghaiSecco and BASF-YPC was RMB 1.292 billion.
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For Further Information
http://www.sinopec.com.cn
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Tel: (8610) 64990092
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Email: ir@sinopechk.com
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Email: fangzq@sinopecusa.com
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