China Petroleum & Chemical Corporation Class A · SSE:600028
China Petroleum & Chemical Corporation Class A — H1 2022 Earnings Presentation
31 slides from China Petroleum & Chemical Corporation Class A's earnings presentation, Aug 29, 2022
Slide 1: 2022 Interim Results Announcement
China Petroleum & Chemical Corporation 2022 Interim Results Announcement August 29, 2022 Beijing 中国石油化工股份有限公司 S I N O P E C C O R P.
Slide 2: Cautionary Statement
Cautionary Statement 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 f
Slide 3: Agenda
1H 2022 Performance Highlights 1H 2022 Operational Results Content by Segment 2H 2022 Operational Plan Chairman’s Address
Slide 4: 1H 2022 Performance Highlights
1H 2022 Performance Highlights
Slide 5: Market Environment in 1H 2022
Market Environment in 1H 2022 China effectively coordinated pandemic prevention and control with economic and social development GDP up by 2.5% YoY International crude oil prices rose sharply and fluctuated drastically Domestic demand for petroleum and petrochemicals kept stable Movement of
Slide 6: Earnings Hit Record High
Earnings Hit Record High EBIT RMB million 1H 2020 1H 2021 1H 2022 RMB Million 69,733 70,377 Revenue 1,033,064 1,260,773 1,612,126 EBIT (21,586) 69,733 70,377 Profit Attributable to Shareholders of (21,844) 40,227 44,451 the Company (21,586) EPS (RMB) (0.180) 0.332 0.367 1H 2020 1H 2021 1H 2022 2022/
Slide 7: Financial Position
Financial Position RMB million As of Dec. 31, 2021 As of Jun. 30, 2022 Total Assets 1,889,255 2,059,814 Short-term Interest-bearing Debts 38,125 163,151 Long-term Interest-bearing Debts 91,990 92,424 Total Equity Attributable to 774,182 786,249 Shareholders of the Company Liability-to-Asset Ratio 54
Slide 8: Cash Flow
Cash Flow RMB million 1H 2021 1H 2022 Net Cash Generated from Operating Activities 48,347 4,947 Net Cash Used in Investing Activities (65,990) (51,138) Net Cash Generated from Financing Activities 8,650 75,212 RMB million As of Dec. 31, 2021 As of Jun. 30, 2022 Cash and Cash Equivalents 221,989 233,
Slide 9: Dividend – Emphasis on Shareholder Return
Dividend – Emphasis on Shareholder Return The Board of Directors declared an interim dividend of RMB 0.16 per share Annualized dividend yield for H-share was 10.1%* The Board of Directors approved the share buy-back proposal RMB Billion 40 12.0% 10% 10% 10.0% 7% 8.0% 6% 20 5% 6.0% 4% 4.0% 19.4
Slide 10: Capital Expenditure – Focus on Quality and Profitability
Capital Expenditure – Focus on Quality and Profitability 1H 2022 Capital Expenditure: RMB 65 Bn RMB Billion 65 Upstream: RMB 33 Bn 58 Oil & Gas exploration, capacity building and storage & transportation facilities construction Refining: RMB 9 Bn Construction of refining structural upgrading p
Slide 11: Actively Addressing Climate Change
Actively Addressing Climate Change Promoted the “Energy Efficiency Improvement Plan” Proactively implemented emissions reduction measures of GHG, such as CO2 and methane Completed and commissioned China’s first one-million-tonne CCUS project Major Emission Reduction Indicators 1H 2022 GHG redu
Slide 12: Strengthened HSE Management
Strengthened HSE Management Safeguarded occupational, physical and psychological health of employees Promoted the centralized management of safety risks and gas safety Promoted “Green Enterprise Campaign” Major Environmental Indicators YoY change (%) COD of discharged waste water (2.1) Sulphur
Slide 13: 1H 2022 Operational Results by Segment
1H 2022 Operational Results by Segment
Slide 14: Upstream – Significant Achievements in Increasing Reserves, Boosting Production
Upstream – Significant Achievements in Increasing Reserves, Boosting Production, and Improving Profitability Enhanced exploration and development Natural gas production Shunbei Deep Earth Project in Tarim Basin bcf 614 583 Shale oilfield in Bohai Bay Basin and Subei Basin 5.4% 512 Deep natur
Slide 15: Upstream – Profitability Improved Significantly
Upstream – Profitability Improved Significantly Realised Price of Crude Oil Lifting cost USD/bbl 95.4 USD/bbl 16.7 15.0 16.1 58.2 37.6 1H 2020 1H 2021 1H 2022 1H 2020 1H 2021 1H 2022 Realised Price of Natural Gas EBIT of Upstream RMB/cubic meter RMB Million 28,238 1.74 1.52 1.37 7,752 (5,223) 1H 202
Slide 16: Refining – Strengthened Synergy and Optimization
Refining – Strengthened Synergy and Optimization Dynamically adjusted utilization rate and product Refining Throughput structure 126 mm tonnes 121 Optimized the allocation of crude oil resources and 111 reduced procurement costs Sped up the progress in shifting from refined oil products to che
Slide 17: Refining – Profitability kept at Good Level
Refining – Profitability kept at Good Level Refining Margin EBIT of Refining USD/bbl RMB million 11.80 11.18 39,989 30,180 (0.24) 1H 2020 1H 2021 1H 2022 Cash Operating Cost USD/bbl 4.67 3.96 3.42 (33,433) 1H 2020 1H 2021 1H 2022 1H 2020 1H 2021 1H 2022 中国石油化工股份有限公司 17 S IN O PE C C O R P.
Slide 18: Marketing – Leveraged on Integration Advantages
Marketing – Leveraged on Integration Advantages Strengthened integration of production and Domestic Sales of Refined Oil Products marketing, and expanded market and improved mm tonnes profitability 84 78 78 Proactively expanded low-sulpfur bunker fuel market and further consolidated market posit
Slide 19: Marketing – Profitability Kept Stable
Marketing – Profitability Kept Stable Marketing Cash Operating Cost EBIT of Marketing RMB/tonne 198.71 RMB million 175.98 175.86 17,681 17,725 1H 2020 1H 2021 1H 2022 Profit of Non-fuel Business 8,986 RMB million 2,610 2,312 2,042 1H 2020 1H 2021 1H 2022 1H 2020 1H 2021 1H 2022 中国石油化工股份有限公司 19 S IN
Slide 20: Chemicals – Strengthened Structure Optimization
Chemicals – Strengthened Structure Optimization Optimized production and maintenance Ethylene Production scheduling, and kept high utilization rates for 6,846 ’000 tonnes profitable production units 6,463 Optimized product slate, and increased the 5.9% proportion of high value-added products 5,7
Slide 21: Chemicals – Operation Maintained Stable
Chemicals – Operation Maintained Stable Chemical All-in Cost EBIT of Chemicals RMB/tonne RMB million 1,363 1,463 1,297 18,273 1H 2020 1H 2021 1H 2022 Chemical Products Price Index (CPPI) 200 150 100 2,631 50 2,322 0 Jan-20 Jan-21 Jan-22 Index Spread CPPI Naphtha Price Index 1H 2020 1H 2021 1H 2022 中
Slide 22: 2H 2022 Operational Plan
2H 2022 Operational Plan
Slide 23: 2H 2022 Market Outlook
2H 2022 Market Outlook Risk of stagflation in the global economy is expected to rise China’s economic growth is anticipated to rebound and remain within a reasonable range Domestic demands for refined oil and chemical products are expected to pick up Demand for natural gas will maintain grow
Slide 24: 2022 Production Plan
2022 Production Plan 1H 2022 2H 2022E 2022E Oil and Gas Production (mmboe) 242 248 490 Domestic Crude Oil 140 141 281 Production (mmbbls) Natural Gas Production (bcf) 614 643 1,257 Refinery Throughput* (mm tonnes) 121 120 241 Total Domestic Sales Volume of 78 87 165 Refined Oil Products (mm tonnes)
Slide 25: Chairman’s Address
Chairman’s Address
Slide 26: Share high quality performance with shareholders
Share high quality performance with shareholders Focus on optimization, transformation, innovation, reform, and risk control Earnings hit record high Annualized dividend yields of 8% and 10% for A shares and H shares, respectively Focus on value management, and launched share buy back plan for the f
Slide 27: Stress on Innovation Driven
Stress on Innovation Driven Further integration into the national innovation system Focus on technology breakthroughs and Stress on applications relating to innovation oil and gas resources, refining, high-end chemicals and new materials, as well as Improve application of new energy R&D achiev
Slide 28: Stress on Sharpening Competitive Edge
Stress on Sharpening Competitive Edge Oil & Gas Focus on stabilizing oil production, increasing gas output, reducing cost, and improving indicators such as R/P ratio and breakeven point Refining & Chemical Focus on building integrated clusters, pacing up the shift to chemicals and specialty prod
Slide 29: Stress on Green Development Capability
Stress on Green Development Capability More efforts will be made on green and low carbon technology R&D and increasing energy efficiency, to steadily achieve the goals of carbon peak and carbon neutrality Expand new energy business, roll out scaled green hydrogen application in refining and chemical
Slide 30: Stress on Improving the Foundation of High Quality Development
Stress on Improving the Foundation of High Quality Development Deepen reform Strictly control various risks Stress on Improving Foundation of High Quality Enhance corporate Development governance, improve Intensify fundamental recognition by the markets capability building and realize corporate valu
Slide 31: Contact Information
Contact Information Investor relations Beijing: Tel: (8610) 59960028 Fax: (8610) 59960386 Email: ir@sinopec.com Houston: Tel: (001) 7135448888 ext 406 Email: alpinewu@sinopec.com www.sinopec.com
China Petroleum & Chemical — H1 2022 Earnings Presentation on 6ix