1 april 30,2004 china petroleum & chemical corporation q1 2004 results announcement
TRANSCRIPT
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April 30,2004
China Petroleum & Chemical CorporationQ1 2004 Results Announcement
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Agenda
• Performance Review of Q1 2004
• Operation Estimates for Q2 2004
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Performance Review of Q1 2004
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• GDP growth rate of 9.7%
• Prices of crude oil and refined oil products fluctuate at relatively high level
• Significant increase in chemical prices on yoy basis
Market Environment in Q1 2004
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(RMB billion)
Revenue
EBITDA
EBIT
Profit Attributable to Shareholders
EPS (RMB/Share)
23.19
25.05
24.77
24.77
18.54
11.02
6.42
0.074
17.37
104.20 128.36
13.78
8.01
0.092
20.59
Q1 03 Q1 04 Change(%)
Results of Operation- Significant Earnings Growth
7
167.90
43.6
29.1
(RMB billion)Change(%)
Q1 04
18.334
5.297
12.257
10.073
175.91
50.8
28.9
4.77
16.51
-0.69
Sound Financial Position
As ofDec. 31, 2003
As ofMar. 31, 2004
Shareholders’ Equity
Long-term Debt
Short-term Debt
Cash and Cash Equivalent – Ending Balance
Net Cash Flow from Financing Activities
Net Cash Flow for Investing Activities
Net Cash Flow from Operating Activities
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E & P —Production Continue to Grow
1,762.00
619.00
9,287.2
1,260
-4.73
-2.02
2.70
10.71
1,678.63
606.47
9,538.3
1,395
Lifting Cost (USD / bbl) 6.14 3.756.37
EBIT (RMB million) 5,617 -19.084,545
Q1 03 Q1 04 Change(%)
Crude Production (‘000 tonne)
Gas Production (million cubic meter)
Crude Realized Price (RMB / tonne)
Gas Realized Price (RMB / ’000 cubic meter)
Note: 1 tonne = 7.1 barrel , 1 cubic meter = 35.31 cubic feet
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27,631
5,128
9,915
1,409
74.30
92.64
4,211
17.15
11.76
21.46
4.83
-45bps
18bps
7.67
32,369
5,731
12,043
1,477
73.85
92.82
4,534
5,625 15.256,483
Q1 03 Q1 04 Change(%)
Refining -Adjust Product Mix, Increase Throughput
Crude Oil Throughput
Gasoline Production
Diesel Production
Kerosene Production
Light Yield (%)
Refining Yield (%)
Chemical Feedstock Production
Of which: Sour-Crude Throughput
Unit: ‘000 tonne
10
4.23.76
0.00
1.00
2.00
3.00
4.00
5.00
Q1 03 Q1 04
2,169
1,196
0
500
1,000
1,500
2,000
2,500
Q1 03 Q1 04
Refining – Earnings Increased Yoy
Refining Margin
(USD/bbl)
Refining Segment EBIT
(RMB million)
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5,580
3,283
8,952
17,814
28,894
24,065
4,829
1,686
-4.55
34.05
33.79
21.84
5.27
2.56
18.78
4.21
5,326
4,401
11,977
21,705
30,416
24,680
5,736
1,757
Q1 03 Q1 04 Change(%)
Maketing –Increased Volume, Optimized Structure
Owned and Operated
Franchised
Annual Throughput Per Station (tonne/site)
Wholesale (‘000 tonne)
Distribution (‘000 tonne)
Retail (‘000 tonne)
Domestic Sale of Refined Product (‘000 tonne)
Total No. of Gas Stations
12
4,1183,816
0
1,000
2,000
3,000
4,000
5,000
Q1 03 Q1 04
Marketing – Sustainable Earnings Growth
Domestic RON 90# Gasoline Guidance Price
(RMB/Tonne)
(RMB/Tonne)
Domestic 0# Diesel Guidance Price
Marketing Segment EBIT
(RMB MM)
2000
3000
4000
Jan Mar May Jul Sep Nov
2003 2004
2000
3000
4000
Jan Mar May Jul Sep Nov
2003 2004
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Unit: ‘000 tonne
1,030.8 18.39
859.8 8.32
128.9 18.00
390.3 38.74
1,261.6 10.45
299.1 4.71
1,220.4
931.3
152.1
541.5
1,393.4
313.2
Q1 03 Q1 04 Change(%)
Chemical – Increased Volume
Ethylene
Synthetic Resins
Synthetic Rubber
Synthetic Fiber Monomer & Polymer
Synthetic Fiber
Urea
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3,635
751
0
1,000
2,000
3,000
4,000
5,000
Q1 03 Q1 04
Chemical – Increased Profitability
Chemicals Price Spread(1990 through Apr 2004)
Chemical Segment EBIT
(RMB MM)
0
200
400
600
800
1000
1200
Jan-90 Jan-92 Jan-94 Jan-96 Jan-98 Jan-00 Jan-02 Jan-04
LDPE-Naphtha PP-Naphtha
USD/tonne
15
E & P
Refining
Marketing
Chemical
Corporateand Others
Total : RMB11.157 billion
• E & P – RMB4,856MM , breakthroughs in exploration of consealed reserves in eastern china. Newly added crude capacity of 820 thousand tonnes/year
• Refining – RMB 1,452MM , Ningbo-Shanghai-Nanjing crude pipeline will be put into operation soon, some revamped projects were progressing
• Marketing – RMB3,447MM , construction of South-West oil pipeline and upgrading retail networks progressed smoothly
• Chemical – RMB995MM , Qilu ethylene upgrading project and other chemical revamping projects progressed smoothly
• Corporate and Others – RMB407MM , IT projects including ERP progressed smoothly
In addition, Capex for JV projects including Shanghai-Secco project was RMB 1,549MM
Capital Expenditure
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Operational Estimates for Q2 2004
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Market Outlook for Q2
• Chinese economy will continue to maintain relatively high growth rate providing a favorable external environment for the Company’s operations
• International prices of crude oil and refined products are expected to maintain at high level
• Chemicals continue to experience cyclical upturn
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billion cubic meter
‘000 tonne
9.62
1.44
33.00
915
22.30
12.50
4.40
9.54
1.40
32.37
931
21.70
11.98
4.40
Q2 04E Q1 04A
Operational Estimates for 2Q
Crude Production
Gas Production
Refining Throughput
Ethylene Production
Domestic Sale of Refined Products
Retail
Distribution
million tonne
million tonne
million tonne
million tonne
million tonne
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