Transcript China Petroleum and Chemical Corporation

China Petroleum & Chemical Corporation
3Q 2004 Results Announcement
October 29, 2004
Agenda
• Performance review of 1Q-3Q04
• Operational plan for 4Q 2004
29 October 2004
3
Performance Review of 1Q-3Q04
Market Environment in 1Q-3Q04
• GDP growth rate was 9.5%
• Prices of crude oil fluctuated and climbed up to a
high level
• Strong domestic demand for oil and chemical
products, and prices of chemical products remained
at high level
29 October 2004
5
Results of Operations –
Significant Earnings Growth
(RMB million)
1Q-3Q03
1Q-3Q04
Change (%)
EBIT Contribution by
Segment
(RMB million)
50000
Revenue
318,636
433,646
36.09
EBITDA
48,811
66,978
37.22
30000
EBIT
29,673
44,563
50.18
20000
Profit attributable to
shareholders
17,209
26,653
54.88
10000
0.197
0.307
54.88
0
EPS (RMB/share)
40000
1Q-3Q03
1Q-3Q04
-10000
29 October 2004
E&P
Refining
Marketing
Corporate
Chemicals
6
E & P Segment –
Oil and Gas Production Increased Steadily
1Q-3Q03
Crude Production (MM bbl)
202.70
1Q-3Q04
204.50
E&P Segment EBIT
Change (%)
0.89
(RMB million)
20000
Gas Production (bcf)
138.34
152.18
10.00
17,432
18000
16000
15,496
14000
12000
Lifting cost (USD/ bbl)
6.30
6.35
0.79
10000
8000
Crude Realized Price (USD/ bbl) 27.82
31.27
12.38
6000
4000
Gas Realized Price (USD/kcf)
2.05
2.07
0.98
2000
0
1Q-3Q03
29 October 2004
1Q-3Q04
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Refining Segment –
1Q-3Q03
1Q-3Q04
Improved Refinery Efficiency
Change (%)
Refining Segment EBIT
Crude Oil Processed (MT)
98,678
16.22
85.7
92.38
668 bps
Sour crude processed (MT)
16,944
20,418
20.50
Gasoline Production (MT)
15,812
17,481
10.38
Diesel Production (MT)
30,575
37,763
23.51
12,323
13,022
5.67
3,842
4,643
20.85
Refinery utilization(%)
Chemical feedstock (MT)
Kerosene Production (MT)
84,906
(RMB million)
7000
5,730
6000
5000
4,537
4000
3000
2000
Light product yield(%)
73.50
73.94
44 bps
1000
Refining yield(%)
92.71
92.93
22 bps
0
Refining margin (USD/bbl)
29 October 2004
3.90
3.86
-1.03
1Q-3Q03
1Q-3Q04
8
Marketing Segment —
Continued to Increase Sales Volume
1Q-3Q03
1Q-3Q04
Change (%)
Marketing Segment EBIT
Domestic Sales of Oil
Products (MT)
Retail (MT)
55,171
70,188
27.22
(RMB million)
27,992
38,571
37.79
14000
Distribution (MT)
11,316
15,025
32.78
Wholesale (MT)
15,864
16,591
4.59
12,815
12000
10000
8,926
8000
Total No. of Gas Stations
29,612
31,030
4.79
6000
4000
Owned and Operated
24,286
25,654
5.63
2000
Franchised
5,326
5,376
0.94
0
1Q-3Q03
Annual Throughput per Station 1,652
(tonne/site)
29 October 2004
2,005
1Q-3Q04
21.37
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Chemical Segment —
Earnings Significantly Improved
Unit: ‘000 tonnes
Ethylene
1Q-3Q03
2,613.8
1Q-3Q04
2,670.1
Change (%)
Chemical Segment EBIT
2.15
(RMB million)
Synthetic Resins
Performance compound
Synthetic Rubber
Synthetic Fiber Monomer
& Polymer
Synthetic Fiber
Differential fiber
3,828.8
4,061.9
6.09
12000
1,771.3
2,104.8
18.83
10000
392.5
414.6
5.63
3,302.6
3,620.1
9.61
10,020
8000
6000
4000
935.3
971.5
3.87
2000
379.8
430.1
13.24
1,798
0
1Q-3Q03
Urea
29 October 2004
1,617.1
2,151.6
1Q-3Q04
33.05
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Improved Asset Efficiency, Strengthened
Core Business
•
•
In 3Q04, the company made provisions for some inefficient gas stations,
oil tanks and chemical assets.
According to IFRS, write off and provisions on long-lived assets during
the 3Q04 amounted to RMB 1.63 billion. Among which, Marketing
Segment accounted for RMB1.142 billion, Chemical Segment accounted
for RMB332 million, Refining Segment accounted for RMB156 million.
Depreciation reduction of RMB209 million is expected next year.
29 October 2004
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Capital Expenditure
Capex Distribution during 1Q-3Q2004
1.58%
33.66%
33.95%
13.49%
E&P
Marketing
Refining
Corporate
Total Capex during 1Q-3Q04: RMB 42.33 bn
•
E&P – RMB 14.25 bn, newly added 3.33 MM tpa oil
production capacity and 0.158 bcm per year gas
production capacity
•
Refining – RMB 7.33 bn， refinery projects aimed
to add a comprehensive capacity of 9.5 MM tpa is
under construction
•
Marketing – RMB 14.37 bn, newly added 1,148
company-owned gas stations
•
Chemical – RMB 5.71 bn, Qilu ethylene capacity
expansion up to 720 M tpa has been successfully
completed
•
Corporate and others – RMB 0.67 bn
17.32%
Chemicals
In addition, RMB 5 bn of Capex in Secco
and other JV projects
29 October 2004
12
Operational Plan for 4Q 2004
Market Outlook for 4Q04
•
•
•
29 October 2004
Domestic demand for oil and chemical products will
maintain a strong growth momentum
Prices of crude oil will continue to fluctuate at high
level
Chemical business is expected to remain in the cycle
upturn
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Operational Plan for 4Q 2004
Q4 ’04E
2004E
Crude Production (MM Tonnes)
9.82
38.62
Gas Production (bcm)
1.50
5.81
Refining Throughput (MM Tonnes)
34.24
132.92
Domestic Sale of Refined Products(MM Tonnes)
24.00
94.19
12.60
51.17
972
3642
Of which： Retail(MM Tonnes)
Ethylene Production (kt)
29 October 2004
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For Further Information
http://www.sinopec.com.cn
Investor Relations
Media Relations
Beijing:
Tel: (8610) 64990092
Fax: (8610) 64990093
Email: [email protected]
Tel: (8610) 64990060 Fax: (8610) 64990489
Email: [email protected]
Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669
Email: [email protected]
New York:
29 October 2004
Tel: (212) 759 5085 Fax: (212) 759 6882
Email: [email protected]
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