2011 annual resultsannual results announcement · 2017-02-21 · 2011 annual resultsannual results...
TRANSCRIPT
China Petroleum & Chemical Corporation
2011 Annual Results Announcement2011 Annual Results Announcement
March 26, 2012Hong Kong
Di l iDisclaimerThis 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 reserves and other estimates and business plans) are forwardnot limited to projections, targets, reserves and other 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, g g , g y ,
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.
2012-3-26 1
A dAgenda
Performance Highlights
Operational Results by Segment Operational Results by Segment
2012 Operational Planp
2012-3-26 2
Performance HighlightsPerformance Highlights
M k t E i tMarket Environment
China maintained steady economic development with GDP growth rate of 9 2% China maintained steady economic development with GDP growth rate of 9.2% Domestic demand for refined oil and chemical products kept growing
Domestic apparent consumption of refined oil products grew by 4.5% Domestic apparent consumption of ethylene equivalent grew by 4.9%
International oil price surged in Q1 and remained high and volatile Tight control over refined oil price due to huge inflation pressure in China Nation-wide resource tax reform on gas and oil adopted Threshold for special income levy adjusted Threshold for special income levy adjusted Pilot program for the reform of natural gas pricing mechanism announced
Max domestic retail price of oilGrowth rate of oil and chemical product
110120130140
10 00011,00012,000
15%
20%
25% RMB/tonne USD/bbl
Max. domestic retail price of oil product vs Dubai crude price
Growth rate of oil and chemical product consumption in China
5060708090100110
6,0007,0008,0009,000
10,000
RON 90# Gasoline0# dieselDubai Crude (RH)
-5%
0%
5%
10%
00 01 02 03 04 05 06 07 08 09 10 11
2012-3-26
4050
5,00010-1 10-4 10-7 10-10 11-1 11-4 11-7 11-10 12-1
Dubai Crude (RH)
4
00 01 02 03 04 05 06 07 08 09 10 11
GDP Refined oil Product Ethylene equivalent
Fi i l Hi hli htFinancial Highlights
Record revenue with a 31% increase yoy
Record net profit with a 2% increase yoy
T t l f RMB 130 2 b Total capex of RMB 130.2 bn
Strong operating cash flow of RMB 150.6 bn
Full-year dividend of RMB 0.30 per share with a payout ratio of 35.5%y p p y
RevenueRMB billion
Dividend per shareRMB
1,913.2
2,505.7 RMB billion
0.21
0.30
RMB
2012-3-26 5
2010 2011 2010 2011
Operating SummaryF R d M k t——Focus on Resources and Market
Oil and Gas Production Refinery Throughput*
377.45 401.42 407.91186.58
211.13 217.37
Oil and Gas Production Refinery Throughput*mmboe mm tonnes
2009 2010 2011 2009 2010 2011
Total Sales volume of Oil Products Ethylene Production*
130.32149.23
162.32
6,713
9,059 9,894
Total Sales volume of Oil Products Ethylene Production
mm tonnes ’000 tonnes
6,713
2012-3-26 * 100% production of joint ventures included
2009 2010 2011 2009 2010 2011
6
ProfitabilityProfitability
Significant growth in revenue and other operating income Significant growth in revenue and other operating income
Net profit increased 2% to RMB 73.2 billion despite of price control on oil product
Revenue and Other Operating Income Earnings per Share
Record revenue and profit achieved
2,505.7
Revenue and Other Operating Income
RMB billion
0 7280.828 0.845
RMB
Earnings per Share
1,345.1
1,913.20.728
2009 2010 2011 2009 2010 2011
2012-3-26
2009 2010 2011 2009 2010 2011
7
Di id dDividend
Full year dividend of RMB 0 30 per share up by 42 9% yoy Full-year dividend of RMB 0.30 per share, up by 42.9% yoy
Dividend payout ratio of 35.5%, up by 10.1 percentage points yoy
Dividend yield exceeded 4.5% Dividend yield exceeded 4.5%
DPS d Di id d P t R ti Di id d Yi ld*
35.5%RMB/Share
4.53%
DPS and Dividend Payout Ratio Dividend Yield*
0.13
0.20
24.7% 25.4% 2.96%3.33%
0.07 0.08 0.10
0.110.13
2009 2010 2011 2009 2010 2011
2012-3-26 8
Interim Year-endPayout ratio
2009 2010 2011
* Based on the closing price of H-share at year-end
S d U f C hSources and Uses of Cash
RMB MM 2009 2010 2011Net cash generated from operating activities 165,513 170,333 150,622
N t h d i i ti ti iti (117 355) (105 788) (140 449)Net cash used in investing activities (117,355) (105,788) (140,449)
Net cash used in financing activities (46,411) (56,294) (2,516)
Cash and cash equivalent at year-end 8 782 17 008 24 647Cash and cash equivalent at year end 8,782 17,008 24,647
Sources and Uses of CashRMB billion
150.6
22.9
140.4
17.0 19.5 6.0
24.6 Cash as of
2010 year endCash from operating
Issuance of convertible
Cash from investing
Cash paid for dividends
Other financing activities
Cash as of 2011 year end
2012-3-26 9
2010 year-end operating activities
convertible bond
investing activities
dividends activities 2011 year-end
Fi i l P itiFinancial Position
EBITDA-to-Interest CoverageReturn on Capital Employed
19.521.3
18.811.67%12.95%
11.49%
2009 2010 20112009 2010 2011
2012-3-26 10
C it l E ditCapital Expenditure 2011 Capex: RMB 130.2 billion
More emphasis on investment in E&P and Marketing
E&P – RMB 58.8 billionShengli shallow water oil field Northwest
RMB billion Shengli shallow water oil field, Northwest
Tahe oil field and Northeast Sichuan natural gas exploration and Shandong LNG projects
Refining – RMB 25.8 billionCompletion of Beihai Refinery upgrading of
112.7 113.7 124.1
130.2
Completion of Beihai Refinery, upgrading of Shanghai and Jinling refinery, and Rizhao-Yizheng crude oil pipeline projects
Marketing – RMB 28.5 billionC t ti f i t ti il d t Construction of service stations, oil depots, oil output transfer networks along highways, in major cities and newly-planned regions
Chemicals – RMB 15.0 billionW h th l j t Zh MTO Wuhan ethylene project, Zhongyuan MTO project
Corporate & others – RMB 2.1 billion
2009 2010 2011Plan 2011
Corporate & Others ChemicalsMarketing RefiningE&P
2012-3-26 11
Safety Production, Energy Conservation and E i i R d tiEmission Reduction
Implement “green and low carbon strategy” and HSE management system
Strengthen energy saving and emission reduction and transform growth
pattern. Realize the following targets while expanding business scale:
Energy intensity declined 0.7%
Water consumption for industrial use decreased 2.0%
COD in externally discharges waste water reduced by 16.9%
SO2 emission declined 9.8%
Over 95% of industrial water recycled
2012-3-26 12
Operational Results by SegmentOperational Results by Segment
E&P O ti SE&P – Operating Summary
Yoy2009 2010 2011 YoyChange
Oil and gas production (mm boe) 377.45 401.42 407.91 1.6%
Crude oil production (mm bbls) 327 62 327 85 321 73 (1 9%)Crude oil production (mm bbls) 327.62 327.85 321.73 (1.9%)
Incl. China 301.15 302.18 303.37 0.4%
Overseas 26.47 25.67 18.36 (28.5%)
Natural gas production (bcf) 299.01 441.39 517.07 17.1%
Lifting cost (USD/bbl) 12.80 13.99 16.08 14.9%** U 9 5% l di h t ff t
As of Dec. 31, 2009
As of Dec. 31, 2010
As of Dec. 31, 2011
yoyChange
* Up 9.5% excluding exchange rate effects
Proven reserves of oil and gas (mm boe) 4,043 3,963 3,966 0.1%
Proven reserves of crude oil (mm bbls) 2,920 2,888 2,848 (1.4%)
Proven reserves of natural gas (bcf) 6,739 6,447 6,709 4.1%
2012-3-26 14
Proven reserves of natural gas (bcf) 6,739 6,447 6,709 4.1%
1. 100% production and reserves of SSI included2. 1 ton=7.1 barrels for crude oil production in China, 1 m3=35.31 c.f. for natural gas production in China, 1 ton=7.27 barrels for
overseas crude oil production
E&P S t P fE&P – Segment Performance
RMB million
Operating Profit of E&P Segment
70.87 98.70
USD/bbl
Realized Price of Crude Oil
71,63150.82
47,1492009 2010 2011
Realized Price of Natural Gas23,894
3.98 4.91
5.63 USD/'000 cubic feet
2009 2010 2011
2009 2010 2011
2012-3-26 15
R fi i O ti SRefining – Operating Summary
yoy2009 2010 2011 yoyChange
Refinery throughput (’000 bbls/day) 3,757 4,252 4,377 2.9%
Gasoline, diesel and kerosene production (mm tonnes)
113.69 124.38 128.00 2.9%
Incl. Gasoline production (mm tonnes) 34.43 35.87 37.10 3.4%
Diesel production (mm tonnes) 68.86 76.09 77.17 1.4%
Kerosene production (mm tonnes) 10.39 12.42 13.73 10.5%p ( )
Light chemical feedstock production (mm tonnes) 26.87 35.00 37.38 6.8%
Li ht i ld (%) 75 54 75 79 76 08 29 bLight yield (%) 75.54 75.79 76.08 29 bps
Refining yield (%) 94.53 94.83 95.09 26 bps
Note: 1. refinery throughput is calculated based on 1 ton = 7.35 bbls;
2012-3-26 16
Note: 1. refinery throughput is calculated based on 1 ton 7.35 bbls;2. 100% production of joint ventures included
R fi i S t P fRefining – Segment Performance
RMB million
Operating Profit of Refining Segment6.62 5.84
USD/bblRefining Margin
27,504
15,851 0.73
2009 2010 2011
2009 2010 2011
USD/bblOperating Cost
2.71 2.813.15
USD/bbl
(35,780)
2009 2010 2011
2012-3-26 17
* Up 6.9% excluding exchange rate effects
M k ti O ti SMarketing – Operating Summary
yoy(mm tonnes) 2009 2010 2011 yoyChange
Total sales of refined oil products 130.32 149.23 162.32 8.8%
Domestic sales of refined oil products 124.02 140.49 151.16 7.6%
Incl. Retail 78.90 87.63 100.24 14.4%
Distribution 25.61 32.40 33.22 2.5%
Wholesales 19.52 20.47 17.70 (13.5%)
Annualized average throughput of self-Annualized average throughput of self-operated stations (tonnes/station)
2,715 2,960 3,330 12.5%
As of Dec. As of Dec. As of Dec. yoy31, 2009 31, 2010 31, 2011 Change
Total number of domestic service stations 29,698 30,116 30,121 0.02%
Incl. Company-operated stations 29,055 29,601 30,106 1.7%
2012-3-26 18
Incl. Company operated stations 29,055 29,601 30,106 1.7%
M k ti S t P fMarketing – Segment Performance
Operating Profit of Marketing Segment
销售板块经营收益Revenue from Non-fuel Business
44,696RMB million
8,260RMB million
30,300 30,760
3 010
5,720
3,010
2009 2010 20112009 2010 2011
2012-3-26 19
Ch i l O ti SChemicals – Operating Summary
yoy’000 tonnes 2009 2010 2011 yoyChange
Ethylene 6,713 9,059 9,894 9.2%
Synthetic resins 10,287 12,949 13,652 5.4%
Monomers & polymers for synthetic fibers 7,798 8,864 9,380 5.8%
Synthetic fibers 1,302 1,393 1,388 (0.4%)
Synthetic rubbers 884 967 990 2.4%
100% production of joint ventures included
2012-3-26 20
Ch i l S t P fChemicals – Segment Performance
Ch i l P d t P i I d (CPPI)
300 RMB million
Chemical Products Price Index (CPPI) Operating Profit of Chemical Segment
200
250 26,732
150 13,77915,011
50
100
0
指数差 CPPI 石脑油价格指数Index Difference Naphtha Price Index
2009 2010 2011
2012-3-26
指数差 CPPI 石脑油价格指数Index Difference Naphtha Price Index
21
Source: Sinopec
2012 Operational Planp
M k t O tl k f 2012Market Outlook for 2012
Recovery of the world economy is expected to be arduous Uncertainty in European and US economy recovery Slowdown in economic growth of emerging markets esp. China
High uncertainty in the world economy and political landscape, especially during a year of electionsespecially during a year of elections
Affected by geopolitical and other factors, the international oil price is expected to remain at a high level
Demand for oil and chemical products is expected to grow at a slower pace
2012-3-26
2012 C Pl2012 Capex Plan
2012 C Pl 172 9 billi E&P 2012 Capex Plan 172.9 billion E&P Exploration and production capacity
building focusing in oil fields of Shengli, Tahe, south of Erdos and gas fields of Yuanba and Erdos
RMB billion
78.2
26 5
25.9 5.4 Yuanba and Erdos
Refining Retrofit of the oil refining facilities of
Sinopec Shanghai and Jinling
36.8
26.5 Huangdao-Dongjiakou-Lanshan crude oil pipelines and other ancillary facilities
Marketing Construction and acquisition of high 36.8
E&P Refining
Construction and acquisition of high quality service stations
Construction of oil product pipelines and storage facilities
Chemicals Marketing ChemicalsCorporate & Others
Chemicals Wuhan ethylene and Hainan aromatics
projects
2012-3-26 24
2012 P d ti E ti t2012 Production Estimates
Natural Gas ProdcuctionOil and Gas Production Crude Oil Production
321.73 326.5
517 07582.6
Natural Gas Prodcuctionmm bbls bcf
407.9 423.6
Oil and Gas Productionmm boe
Crude Oil Production
517.07
2011 2012E 2011 2012E
Refinery Throughput* Total Domestic Sales of Ethylene Production*
2011 2012E
151.16 1579,894 9,900
217.37 225
Refinery Throughput Total Domestic Sales of Refined Oil Products
Ethylene Production
mm tonnes mm tonnes ’000 tonnes
2012-3-26 25* 100% production of joint ventures included
2011 2012E 2011 2012E2011 2012E
F F th I f tiFor Further Information
http://www.sinopec.com
Investor RelationsBeijing: Tel: (8610) 59960028 Fax: (8610)
Media RelationsTel: (8610) 59960028j g ( ) ( )
59960386Email: [email protected]
Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669Email: [email protected]
( )Fax: (8610) 59960386Email: [email protected]
2012-3-26
@ pNew York: Tel: (212) 759 5085 Fax: (212) 759 6882
Email: [email protected]