China Petroleum & Chemical Corporation
2009 Annual Results Announcement
March 29, 2010Hong Kong
2010-3-29 2
Disclaimer
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, 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 of today and undertakes no
obligation to update these statements.
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Agenda
2009 Overview
2009 Operational Results
2010 Operational Plan
2009 Overview
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Chinese GDP increased by 8.7%
Crude oil price rebounded from the bottom
Reform of pricing, taxation and levies on oil products reversed huge
historic losses suffered by domestic refining industry
Domestic demand for refined oil products increased quarter by
quarter, and apparent consumption grew by 0.9% over 2008
Domestic demand for chemical products recovered gradually, and
apparent consumption of ethylene equivalent grew by 8% over 2008
Review of Market Environment
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2007 2008 2009 yoy%
Crude oil production (mm bbls) 291.7 296.8 301.2 1.5
Natural gas production (bcf) 282.6 293.1 299.0 2.0
Refinery throughput (mm tonnes) 164.00 171.14 182.62 6.7
Domestic sales of refined oil products (mm tonnes)
119.39 122.98 124.02 0.8
Ethylene production* (‘000 tonnes) 6,534 6,289 6,713 6.7
Segment EBIT (RMB million)
E&P 48,766 66,569 19,644 (70.5)
Refining (10,997) (63,635) 23,077 -
Marketing 35,904 38,519 30,300 (21.3)
Chemicals 13,303 (12,950) 13,615 -
Operational Summary
Note: * Includes 100% production of JVs
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RMB million 2007 2008 2009 yoy%
Turnover, other operating revenues and other income 1,205,860 1,495,148 1,345,052 (10.0)
EBITDA129,144 72,657 134,918 85.7
EBIT85,496 26,336 84,431 220.6
Net profit attributable to equity shareholders of the Company 55,914 28,525 61,760 116.5
EPS (RMB)0.645 0.329 0.712 116.5
Financial Performance
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RMB million 31 Dec. 2007 31 Dec. 2008 31 Dec. 2009
Short-term debts 47,074 75,516 58,898
Long-term debts 83,134 90,254 108,828
Total equity attributable to equity shareholders of the Company
307,897 327,889 375,661
Debt/Capital Ratio 28.1% 27.9% 28.0%
RMB million 2007 2008 2009
Net cash generated from operating activities
118,612 66,517 152,075
Net cash used in investing activities (110,786) (110,035) (116,039)
Net cash (used in)/generated from financing activities
(7,164) 42,820 (34,294)
Financial Position
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RMB
Maintained stable dividend payout level
Dividend
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Capital Expenditure
RMB billion
E&P - RMB 51.5bn Expanded key production facilities and increased
reserve utilization Sichuan to East China Gas Project stably promoted Newly-built 5.7mm tonnes per year crude oil production
capacity and 1.2 bcm per year natural gas capacity.
Refining – RMB 15.5bn Upgrading refined oil product quality Revamping crude adaptability Construction of new storage facilities and
pipelines
Marketing – RMB 16.3bn Added 1,299 new service stations in key areas Accelerated the construction of storage
facilities and pipelines
Chemicals – RMB 25.2bm Fujian, Tianjin and Zhenhai ethylene projects
were completed Some chemical products upgrading and
expansion projects were completed
2009 Capex: RMB 110 billion
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Cost Saving
11
2009 Cost Saving: RMB 3.2 billion
RMB billion
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Corporate Governance Improved
Completed the rotation and succession of members to the Board of
Directors and the Board of Supervisors
Revised the Articles of Association and relevant procedures
Further updated the Internal Control Manual
Shaped unique management model of Sinopec Corp.
Crafted the Outline of Corporate Culture Development
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Scientific and technological innovation as accelerator of development Upstream : key technologies for large scale gas fields in Northeast Sichuan
Refining : the ultra-low pressure reforming technology won 1st class prize of national award
FCC gasoline S-Zorb adsorptive desulfurization technology and gasoline selective hydro-
desulfurization technology guaranteed product upgrading to GB III standard gasoline
Large scale of gas-phase polyethylene proprietary process package further improved the capability
of Chemicals Segment
Some new production technologies improved chemical product mix
Strengthen technology research on new energy and low carbon economy
Technological Innovation
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Health, Safety and Environment
Fully implemented the HSE management
system, supporting development of low
carbon emission economy
Rolled out full scale clean production
processes
Comprehensive energy intensity down to 0.72 tonne
of coal equivalent
COD in waste water declined by 3.6%
Sulfur dioxide discharge fell by 14%
Launched a campaign of I Safe to promote
safe production
14
Kg standard oil/tonne
Kg standard oil/tonne
2009 Operational Results
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2007 2008 2009 yoy%
Crude oil production (mm bbls) 291.7 296.8 301.2 1.5
Natural gas production (bcf) 282.6 293.1 299.0 2.0
Newly added proved reserves of crude oil (m
m bbls)20.7 114.0 280.2 145.7
Newly added proved reserves of natural gas
(bcf)3,756.7 921.6 78.4 (91.5)
Lifting cost (RMB/tonne) 601 630 643 2.0
31 Dec. 2007
31 Dec. 2008
31 Dec. 2009
yoy%
Proved reserves of crude oil (mm bbls) 3,024 2,841 2,820 (0.7)
Proved reserves of natural gas (bcf) 6,331 6,959 6,739 (3.2)
Proved reserves of oil and gas (mm boe) 4,079 4,001 3,943 (1.4)
E&P - Operational Summary
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E&P - Segment Performance
Realized prices of Crude Oil and Natural Gas
RMB million
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2007 2008 2009 yoy%
Refinery throughput (kbpd) 3,302.4 3,446.2 3,677.4 6.7
Gasoline production (mm tonnes) 26.55 29.65 34.43 16.1
Diesel production (mm tonnes) 63.41 69.74 68.86 (1.3)
Kerosene production (mm tonnes) 8.32 7.99 10.39 30.0
Light chemical feedstock production (mm tonnes)
24.00 23.12 26.87 16.2
Light yield (%) 74.48 74.75 75.54 79bps
Refining yield (%) 93.95 94.05 94.53 48bps
Refining - Operational Summary
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RMB million
Refining Margin/ Cash Operating Cost
Refining - Segment Performance
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2007 2008 2009yoy%
Domestic sales of refined oil products
(mm tonnes)119.39 122.98 124.02 0.8
Incl. Retail (mm tonnes) 76.62 84.10 78.90 (6.2)
Distribution (mm tonnes) 20.17 19.63 25.61 30.5
Wholesales (mm tonnes) 22.60 19.25 19.52 1.4
Total number of service stations 29,062 29,279 29,698 1.4
Incl. Company-operated 28,405 28,647 29,055 1.4
Franchised 657 632 643 1.7
Throughput of Company-operated
stations (tonnes/station)2,697 2,935 2,715 (7.5)
Marketing - Operational Summary
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RMB/tonne
RMB/tonne 2007 2008 2009
Marketing cash operating cost
139 153 164
RMB million
Maximum retail price ofRON 90# gasoline and 0# diesel
Marketing - Segment Performance
USD/bbl
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Non-Fuel Business Accelerated
22
Million RMB
Turnover of Non-Fuel BusinessUnit
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Unit: 1,000 tonnes 2007 2008 2009 yoy%
Ethylene 6,534 6,289 6,713 6.7
Synthetic resins 9,660 9,643 10,287 6.7
Monomers & polymers for synthetic fibers 8,018 7,264 7,798 7.4
Synthetic fibers 1,417 1,260 1,301 3.3
Synthetic rubbers 800 834 884 6.0
Urea 1,565 1,649 1,752 6.2
Chemicals - Operational Summary
Note: The above data includes 100% production of JVs.
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RMB million
Chemicals - Segment Performance
RMB/tonne
2010 Operational Plan
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Opportunities
China’s economy continued to grow healthily
Domestic demand for oil products and petrochemicals is
expected to increase steadily
The competitiveness of the Company has been enhanced
Challenges
Uncertainties of crude price
Newly-added capacity for refining and Chemicals
Strong competition in domestic oil product market
Prospect for 2010
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2009Actual
2010Estimates
change%
Crude oil production (mm bbls) 301.2 302.1 0.3
Natural gas production (bcf) 299.0 423.7 41.7
Refinery throughput (mm tonnes)* 182.6 203.0 11.2
Total domestic sales of refined oil products (mm tonnes)
124.0 129.0 4.0
Ethylene production (‘000 tonnes) * 6,713 8,690 29.5
2010 Operation Estimates
Note: *Including 100% production of JVs
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E&P Organize safe operation for Sichuan
to East China Gas Project Development of oilfields in Tahe,
Shengli, and gas fields in Puguang and Ordos
Refining Oil product spec upgrading projects Improve crude transportation and
storage facilities
Marketing Construction and acquisitions of serv
ice stations in key areas Improvement on marketing networks
Chemicals Progress in Zhenhai ethylene projects Accelerate construction of logistic
facilities for chemical products
RMB billion
2010 Capex Plan: RMB 112 billion
Capital Expenditure Plan
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