Sinopec Corp. Q3 2010 Results Announcement 29 October 2010
Disclaimer i As required by the CSRC, financial statements of the third quarter of Sinopec Corp. (the Company ) were prepared under PRC Accounting Rules and Regulations. The Company has adjusted part of the financial data in accordance with the International Financial Reporting Standards hereby for the reference of international investors. Financial data of the third quarter contained in the presentation and presentation materials are unaudited. 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, 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. 2
Market Environment in Q1-Q3 Q3 2010 China s GDP grew by 10.6% in the first nine months of 2010 International crude oil traded within a certain range, and refined oil products prices were adjusted twice in line with the crude price trend Government raised the onshore wellhead benchmark natural gas price and launched resource tax reform for oil & gas in Xinjiang Domestic demand for oil products and chemical products increased steadily Domestic consumption of refined oil products grew by 11% yoy Domestic ethylene-equivalent consumption grew by 8.3% yoy 3
Financial i Performance RMB millions 1-9 10 1-9 09 Change % Turnover and other operating revenues 1,427,622 893,448 59.8 EBITDA 125,772 112,113 12.2 EBIT 81,861 73,307 11.7 Net profit attributable to equity shareholders 56,445 50,638 11.5 EPS (RMB) 0.651 0.584 11.5 Note: Including equity interest in Angola Block 18 project 4
Financial i Position RMB millions As of 30 Sep. 2010 As of 31 Dec. 2009 Short-term debts 36,703 59,350 Long-term debts 136,809 110,918 Total equity attributable to equity shareholders 404,793 378,072 RMB million 1-9 09 Net cash generated from operating activities 94,958 Net cash used in investing activities iti 53,516516 Net cash used in financing activities 39,825 Cash & cash equivalents - ending balance 10,378 5
E&P Operational Summary & Performance 1-9 10 1-9 09 Change % Crude production (million tonnes) note1 note2 34.93 34.27 1.9 Gas production (billion cubic meters) note2 88.70 61.17 45.0 Crude realized Price (RMB/tonne) 3,411 2,239 52.3 Gas realized Price (RMB/ 000 cubic meters) 1,132 960 17.9 Oil & gas lifting cost (RMB/tonne) 624.39 601.34 3.8 EBIT (RMB million) 40,838 16,964 140.7 Note1: Including equity interest in Angola Block 18 project Note2: Domestic crude oil: 1 tonne = 7.1 barrels,1 cubic meter = 35.31 cubic feet. Overseas crude oil:1 tonne = 7.27barrels 6
Refining i Operational Summary (million tonnes) 1-9 10 1-9 09 Change % Refinery throughput 153.76 134.39 14.4 Gasoline production 26.89 25.57 5.2 Diesel production 55.99 50.56 10.7 Kerosene incl. jet fuel production 9.37 7.50 24.9 Light chemical feedstock production 25.86 19.31 33.9 Light yield (%) 75.71 75.30 41 bps Refining yield (%) 94.78 94.28 50 bps 7
Refining i Segment Performance Refining Margin / EBIT of Refining Segment Cash Operating Cost RMB/tonne RMB millions 25000 387 400 21,557 20000 300 238 15000 200 10000 8,491 100 140.6 133.1 5000 0 1-9'09 1-9'10 0 1-9'09 1-9'10 Refining margin Cash operating cost 8
Marketing Operational Summary (million tonnes) 1-9 10 10 1-9 09 Change % Domestic sales of refined oil products 104.35 89.57 16.5 of which Retail 64.14 57.67 11.2 Distribution 24.43 17.51 39.5 Wholesale 15.78 14.39 9.7 Annualized pumped volume of selfoperated stations (tonnes/station) 2,901 2,663 8.9 As of 30 Sep. 2010 As of 31 Dec. 2009 Change % Total no. of service stations 30,050050 29,698 1.2 of which Self-operated 29,467 29,055 1.4 Franchised 583 643 (9.3) 9
Marketing Segment Performance Maximum Retail Price of Gasoline and Diesel vs Crude oil Price RMB/tonne 9000 8000 USD/bbl 110 100 90 EBIT of Marketing Segment RMB millions 25,000 22,377 23,306 20,000 7000 80 70 15,000 6000 60 5000 RON 90# Gasoline 0# Diesel 4000 Dubai Crude (Right Scale) 3000 09 1 09 4 09 7 09 10 10 1 10 4 10 7 10 10 50 40 30 20 10 10,000 5,000 0 1-9'09 1-9'10 10
Chemicals Operational Summary 000 tonnes 1-9 10 1-9 09 Change % Ethylene 6,610 4,741 39.4 Synthetic resin 9,532 7,408 28.7 Monomer & polymer for synthetic fiber 6,524 5,728 13.9 Synthetic fiber 1,030 967 6.5 Synthetic rubber 719 640 12.3 Urea 1,128 1,402 (19.5) Note: 100% production of JVs included. 11
Chemicals Segment Performance Int l Chemicals Price Spread (2005-Sep. 2010) USD/tonne 1200 1000 EBIT of Chemicals Segment RMB millions 15,000 14,305 800 600 10,000 10,393 400 200 5,000 0 2005-1 2005-5 2005-9 2006-1 2006-5 2006-9 2007-1 2007-5 2007-9 2008-1 2008-5 2008-9 2009-1 2009-5 2009-9 2010-1 LDPE-Naphtha PP-Naphtha 2010-5 2010-9 0 1-9'09 1-9'10 12
Capital Expenditure Q1-Q3 Q 2010 Capex: RMB 55.82 bn E&P RMB 25.572 572 billion, added d 3.83 million tonnes/year crude oil capacity and 561 million RMB million cubic meters/year gas capacity. The Sichuanto-Eastern China Gas Project started 112,000 commercial operation. 120,000 100,000 80,000 60,000 40,000 20,000 0 55,822 2010 Plan 1-9 2010 Corporate & Others Marketing E&P Chemicals Refining Refining RMB 8.787 billion, mainly for upgrading refineries to produce higher-spec oil products and process lower-grade crude, and for construction of logistics systems. Marketing RMB 13.326 billion, mainly for expanding marketing network and developing 1,282 service stations. Chemicals RMB 7.145 billion: ethylene projects in Tianjin and Zhenhai were put into operation. Corporate and Others RMB 0.992 billion 13
For Further Information http://www.sinopec.com Investor Relations Beijing: Tel: (8610)59960028 Fax: (8610) 59960386 Email: ir@sinopec.com Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669 Email: ir@sinopechk.com New York: Tel: (212) 759 5085 Fax: (212) 759 6882 Email: fangzq@sinopecusa.com Media Inquiry Tel: (8610) 59960028 Fax: (8610) 59760386 Email: media@sinopec.com 14