1 28 april 2006 china petroleum & chemical corporation q1 2006 results announcement
TRANSCRIPT
1
28 April 2006
China Petroleum & Chemical CorporationQ1 2006 Results Announcement
3
Market Environment in Q1 2006
• Chinese economy maintained rapid growth
• Domestic demand of oil and chemical products sustained growth momentum
• Crude oil prices kept hiking
• Prices of chemical products remained at high levels
• According to the comprehensive scheme to further improve petroleum pricing mechanism, the government began to impose special income levy on E&P companies and moderately raised domestic oil product prices from 26 March.
4
Results of Operation
(RMB million)
Turnover and other operating revenues 227,195 174,127 30.48
EBITDA 22,853 24,970 -8.48
EBIT 14,862 16,880 -11.95
Profit after taxation 9,339 11,042 -15.42
Minority Interests 51 1,405 -96.37
Profit attributable to equity shareholders of the Company 9,288 9,637 -3.62
EPS (RMB/share) 0.107 0.111 -3.62
1Q06 1Q05 Change %
5
Financial Status
(RMB million)
Short-term debts 48,895 40,411
Long-term debts 68,374 67,059
Equity attributable to equity shareholders of the Company 232,844 223,556
Net cash flow from operating activities 1,612 12,793
Net cash flow used in investing activities 14,943 13,112
Net cash flow from financing activities 11,843 2,101
Cash and cash equivalent – ending balance 12,250 18,165
At 31 March 2006 At 31 December 2005
1Q06 1Q05
6
E & P Segment
Note: 1 tonne = 7.1 barrel, 1 cubic meter = 35.31 cubic feet Exchange rate: 1 USD=8.04 RMB for 1Q 2006 and 1 USD=8.28 RMB8.28 for 1Q 2005
15.466.477.47Lifting cost (USD/bbl)
50.6836.1954.53Crude realised price (USD/bbl)
16.962.242.62Gas realised price (USD/kcf)
2.8167.6769.57Crude production (mmbbls)
23.4251.8764.02Gas production (bcf)
16,623 159.986,394EBIT (RMB million)
1Q06 1Q05 Change%
7
(million tonnes)
Crude oil throughput34.33
Gasoline production5.82 -4.98
Diesel production 13.82 13.11 5.42
Kerosene production 1.54 1.68 -8.33
Light chemical feedstock production 5.77 4.99 15.63
Light yield (%) 74.81 73.48 133bps
Refining yield (%) 93.64 92.63 101bps
1Q06 1Q05 Change %
Refining Segment
35.17 2.45
5.53
8
3.49
-1.03
2.071.97
-1.5
-0.5
0.5
1.5
2.5
3.5
4.5
1Q05 1Q06
1.5
2.0
2.5
Refining Cash operating cost
Refining Margin/Cash Operating Cost
(USD/bbl)
Refining Segment EBIT
(RMB million)(USD/bbl)
1,671
-7,875
-10,000
-8,000
-6,000
-4,000
-2,000
0
2,000
4,000
1Q05 1Q06
Note: Exchange rate: 1 USD=8.04 RMB for 1Q 2006 and 1 USD=8.28 RMB8.28 for 1Q 2005
Refining Segment Earnings
9
Marketing Segment
Domestic sales of refined oilproduct (million tonnes) 26.03 24.13 7.87
Incl. Retail (million tonnes) 16.67 13.46 23.85
Direct sales (million tonnes) 4.91 5.35 -8.22
Total No. of gas stations (site) 29,744 30,164 -1.39
Incl. Owned and operated (site) 27,464 26,682 2.93 Franchised (site) 2,280 3,482 -34.52
Annualised throughput per station (tonnes) 2,428 2,018 20.32
1Q06 1Q05 Change %
10
2000
3000
4000
5000
6000
Jan Mar May Jul Sep Nov
2004 2005 2006
2000
3000
4000
5000
Jan Mar May Jul Sep Nov
2004 2005 2006
Domestic RON 90# Gasoline Retail Guidance Price
(RMB/Tonne)
(RMB/Tonne)
Domestic 0# Diesel Retail Guidance Price
Marketing Segment EBIT
3,5423,329
0
1,000
2,000
3,000
4,000
1Q05 1Q06
(RMB million)
Marketing Segment Earnings
11
Chemicals Segment
(‘000 tonnes)
Ethylene production 1,514 1,122 34.94
Synthetic resins production 2,075 1,683 23.29
Synthetic rubber production 161 158 1.90
Synthetic fiber monomer & polymer production 1,782 1,596 11.65
Synthetic fiber production 390 400 -2.50
Urea production 441 388 13.66
1Q06 1Q05 Change %
Note: The ethylene and synthetic resin production in 1Q 06 include 100% of those of YPC- Basf and Shanghai Secco
12
Chemicals Segment Earnings
5,911
3,135
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1Q05 1Q06
Chemicals price spread(1990 through Apr. 2006)
Chemicals Segment EBIT
(RMB million)(USD/tonne)
0
200
400
600
800
1000
1200
Jan-1990
Jan-1992
Jan-1994
Jan-1996
Jan-1998
Jan-2000
Jan-2002
Jan-2004
Jan-2006
LDPE-Naphtha PP-Naphtha
13
Capex in 1Q 06 totaled RMB 14.39 billion
• E & P – RMB 5.372 billion. Newly added crude production capacity of 1.27 million tonnes/year and gas production capacity of 469 million cubic meters/year
• Refining – RMB 2.821 billion. The revamping of Guangzhou and Yanshan refining units and some other secondary processing units went on smoothly
• Marketing – RMB 4.136 billion, mainly used for establishing logistics system, constructing and purchasing gas stations. 97 new gas stations were added during the reporting period
• Chemicals – RMB 1.725 billion. Revamping of Maoming ethylene and Shanghai ethylene glycol, Yangzi aromatics and PTA, and coal gasification projects for three chemical fertilizers plants, progressed smoothly
Capital Expenditure
(RMB billion)
0
10
20
30
40
50
60
70
80
2006 Plan 2006 1Q
E&P Refining Marketing
Chemicals Others
14
http://www.sinopec.com.cn
For Further Information
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]