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Chi P t l & Ch i l C tiChina Petroleum & Chemical Corporation
2013 Interim Results Announcement0 3 te esu ts ou ce e t
August 26, 2013Hong Kong
C ti St t tCautionary Statement
Thi i d h i i l di ib d h i i l d f d l kiThis 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 limitedforward-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 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 ofp p g
today and undertakes no obligation to update these statements.
2013-8-26 2
A dAgenda
Performance Highlights
Operational Results by Segment
2H2013 Operational Plan
2013-8-26 3
Performance Highlightsg g
Fi i l Hi hli htFinancial Highlights
Revenue grew 5 0% yoy to RMB 1 415 2 billionRevenue grew 5.0% yoy to RMB 1,415.2 billion
Effective control on unit operating cost inflation
Refining profitability improved significantlyg y g y
Net profit was RMB 30.3 billion, grew by 23.6% yoy
EPS was RMB 0.262
Interim dividend of RMB 0.09 per share
Capex of RMB 52.0 billion in 1H2013, on track with proposed schedule
2013-8-26 5
O ti P fit ChOperating Profit Change
18 714RMB Million
40,083 46,741
18,714 842
(3,400) (732)
(9,514)
1H2012 E&P R fi i M k ti Ch i l Oth 1H20131H2012 E&P Refining Marketing Chemicals Others 1H2013
2013-8-26 6
O ti SOperating SummaryOil and Gas Production Refinery Throughout*
mm boe mm tonnes109.76 115.44
211.42 219.46211.42 219.46
mm boe mm tonnes
1H2012 1H20131H2012 1H20131H2012 1H2013
Total Sales Volume of Oil Products Ethylene Production*
4,810 4,84182.67 88.05
ymm tonnes '000 tonnes
2013-8-26 7
1H2012 1H20131H2012 1H2013
Note: *Including all output of the joint-venture.
Di id dDividend
The Board of Directors announced an interim dividend of RMB 0.09 per shareThe Board of Directors announced an interim dividend of RMB 0.09 per share
Total dividend is expected to be RMB 10.5 billion, increased by 20.9% YoY
RMB/share
Dividend and Dividend Payout Ratio
30%35%40%45%
0 250.30 0.35 0.40
RMB/share
25-35% Range
35-45% Range
10%15%20%25%
%
0.10 0.15 0.20 0.25 25 35% Range
0%5%10%
0.00 0.05
2006 2007 2008 2009 2010 2011 2012 1H13
Interim dividend Year-end Dividend Dividend payout ratio (RHS)
2013-8-26 8
Interim dividend Year end Dividend Dividend payout ratio (RHS)
Fi i l P itiFinancial Position
RMB million 1H2012 1H2013
Net cash generated from operating activities 20,322 32,903
Net cash used in investing activities (79,659) (67,022)
Net cash generated from financing activities 47,242 34,654
RMB million As of 31 Dec. 2012 As of 30 Jun. 2013
Short-term debt 73,063 110,546
Long-term debt 124,518 104,712
Liability to asset ratio (%) 56.43 54.10
Total equity attributable to shareholders of the Company 510,914 543,717
2013-8-26 9
p y
C it l E ditCapital Expenditure
1H2013 Capex: RMB 52.0 billion E&P-RMB 25 0 billion:
181 7RMB billion
0 3 Cape 5 0 b o E&P-RMB 25.0 billion: South Ordos, Shengli, Tanhai, Yuanbaand Daniudi oil and gas exploration and Shandong LNG project
169.0 181.7 Refining-RMB 7.7 billion:
Refined oil products quality upgrading and refinery revamping and expansion
j tprojects
Marketing- RMB 11.6 billion : Construction and acquisition of service t ti il d t il t t t f
52.0 stations, oil depots, oil output transfer networks
Chemicals –RMB 5.3 billion:W h th l j t H b i
2012 2013E 1H2013
E&P RefiningMarketing Chemicals
Wuhan ethylene project, Hubei syngas to MEG project and Hainan aromatics project
Corporate & others RMB 2 4 billion
2013-8-26 10
Marketing ChemicalsCorporate & others
Corporate & others –RMB 2.4 billion
C t t lCost control
Strengthen all staff target cost managementStrengthen all staff target cost management
Expanded financing channels to reduce financial expenses
Strengthen centralized procurement and storage management
Effective Control on 11.0% Unit Operating Cost Inflation
5.0% 4.5%3.5%
4.6%
（0.5%）
Lifting cost Refining operating cost Marketing operating cost
2013-8-26 11
Lifting cost Refining operating cost Marketing operating cost
Average growth over the past three years 1H2013
HSE d L C b D l tHSE and Low-Carbon Development
Strengthen awareness of low-carbon developmentStrengthen awareness of low-carbon development
Strictly implemented HSE accountability system, enhanced operating
hazard prevention and maintained safety in productionhazard prevention and maintained safety in production
Established a dedicated department to coordinate planning and
management of energy conservation and emission reductiong gy
Promoted energy performance contracting and the development of energy
management system
Actively promoted energy conservation and emission reduction
Energy intensity decreased by 3 24%Energy intensity decreased by 3.24%
COD in discharged wastewater fell by 4.15%
SO emission reduced by 4 54%
2013-8-26 1212
SO2 emission reduced by 4.54%
Operational Results by Segmentp y g
M k t E i tMarket Environment
China’s economy grew steadily with GDP growth of 7 6%China’s economy grew steadily with GDP growth of 7.6%
Steady growth in domestic demand for refined oil products and chemicalsy g
Domestic consumption of refined oil products increased by 3.95%
Domestic consumption of ethylene equivalent rose by 4.7%
China’s energy prices became more market-driven
Further improvement to refined oil products pricing mechanismFurther improvement to refined oil products pricing mechanism
Adjustment to natural gas price announced
2013-8-26 14
E&P O ti SE&P – Operating Summary
1H2012 1H2013 YoY Change
Oil and gas production (mm boe) 211 42 219.46 3.8%Oil and gas production (mm boe) 211.42 219.46 3.8%
Crude oil production (mm bbls) 163.09 165.44 1.4%
China 151.96 153.66 1.1%
Overseas 11.13 11.78 5.8%
Natural gas production (bcf) 289.93 324.14 11.8%
Lifting cost (USD/bbl) 15.83 16.55 4.5%*Lifting cost (USD/bbl) 15.83 16.55 4.5%
* Up 3.5% excluding foreign exchange effect
2013-8-26 15
E&P S t P fE&P – Segment Performance
RMB million
Operating Profit of E&P Segment106.01 96.15
USD/bblRealized Price of Crude Oil
40,463
30,949
Realized Price of Natural Gas
1H2012 1H2013
5.80 5.94
USD/'000 cubic feet
1H2012 1H2013
1H2012 1H2013
2013-8-26 16
1H2012 1H2013
R fi i O ti SRefining – Operating Summary
(mm tonnes) 1H2012 1H2013 YoY Change(mm tonnes) 1H2012 1H2013 YoY Change
Refinery throughput 109.76 115.44 5.2%
G li di l d k d ti 65 95 69 75 5 8%Gasoline, diesel and kerosene production 65.95 69.75 5.8%
Gasoline production 19.61 22.75 16.0%
Diesel production 39.10 38.64 (1.2%)
Kerosene production 7.25 8.36 15.3%
Light chemical feedstock production 18.53 18.82 1.6%
Light yield (%) 77.20 76.20 (100)bps
Note: 1. Refinery throughput is calculated based on 1 ton＝7.35 bbls;2. 100% production of joint ventures included
Refining yield (%) 95.41 94.61 (80)bps
2013-8-26 1717
p j
R fi i S t P fRefining – Segment Performance
Operating Profit of RefiningRefining Margin
213RMB million
Operating Profit of Refining Segment4.57
USD/bblg g
0.55
1H2012 1H2013
USD/bbl
Cash Operating Cost*
(18,501)
3.14 3.32
1H2012 1H2013
1H2012 1H2013
2013-8-26 1818
* Up 4.6% excluding foreign exchange effect
M k ti O ti SMarketing – Operating Summary
(mm tonnes) 1H2012 1H2013 YoY Change(mm tonnes) 1H2012 1H2013 YoY Change
Total sales of refined oil products 82.67 88.05 6.5%
Domestic sales of refined oil products 77.03 80.75 4.8%
Retail 53.15 55.52 4.5%
Distribution 15.68 16.07 2.5%
Wholesales 8.2 9.16 11.7%
Annualized average throughput of self-operated stations (tonnes/station)
3,487 3,620 3.8%
As of 31 Dec. 2012
As of 30 Jun. 2013 Change
Total number of domestic service stations 30,836 30,682 (0.5%), , (0 5%)
Company-operated stations 30,823 30,669 (0.5%)
2013-8-26 19
M k ti S t P fMarketing – Segment Performance
销售板块经营收益Revenue from Non-fuel BusinessRMB million
销售板块经营收益Operating Profit of Marketing Segment
RMB million
5,460
6,580
20,252
16,852
1H2012 1H2013 1H2012 1H20131H2012 1H2013 1H2012 1H2013
2013-8-26 2020
Ch i l O ti SChemicals – Operating Summary
'000 tonnes 1H2012 1H2013 YoY Change
Ethylene 4,810 4,841 0.6%
Synthetic resins 6,701 6,730 0.4%
Monomers & polymers for synthetic fibers 4,580 4,539 (0.9%)
699 3 7%
Note: 100% production of joint ventures included
Synthetic fibers 674 699 3.7%
Synthetic rubbers 475 457 (3.8%)
Note: 100% production of joint ventures included
2013-8-26 2121
Ch i l S t P fChemicals – Segment Performance
RMB million
Operating Profit of Chemical Segment
250
Chemical Products Price Index (CPPI)
170
190
210
230
(409)
110
130
150
170
50
70
90
110
(1,251)1H2012 1H2013Ja
n-10
Mar
-10
May
-10
Jul-1
0Se
p-10
Nov
-10
Jan-
11M
ar-1
1M
ay-1
1Ju
l-11
Sep-
11N
ov-1
1Ja
n-12
Mar
-12
May
-12
Jul-1
2Se
p-12
Nov
-12
Jan-
13M
ar-1
3M
ay-1
3Ju
l-13
Index Dirfference CPPI Naphtha Price
2013-8-26 2222
2H2013 Operational Planp
M k t O tl k f 2H13Market Outlook for 2H13
China’s economy is expected to maintain steady growth
Balanced supply and demand fundamentals in global oil market
Domestic demand for refined oil products and chemicals to maintain steady growth
2013-8-26 24
2H2013 O ti l Pl2H2013 Operational Plan
2012A 2H2013E 2013E ExpectedYoY Growth
Crude oil production (mm bbls) 328.28 166 331 0.8%
Natural gas production (bcf) 598.01 325 649 8.5%
Refinery throughput (mm tonnes) 221.31 120 235 6.2%
Domestic sales of refined oil prod ctsDomestic sales of refined oil products(mm tonnes) 158.99 84 165 3.8%
Ethylene production (‘000 tonnes) 9,452 5,050 9,890 4.6%
2013-8-26 25
F F th I f tiFor Further Information
http://www.sinopec.com
Investor RelationsBeijing: Tel: (8610) 59960028 Fax: (8610) 59960386j g ( ) ( )
Email: [email protected] Kong: Tel: (852) 28242638 Fax: (852) 28243669
Email: [email protected] York: Tel: (212) 759 5085 Fax: (212) 759 6882
2013-8-26 26
( ) ( )Email: [email protected]
