China Petroleum & Chemical Corporation Class A · SSE:600028
China Petroleum & Chemical Corporation Class A — H1 2023 Earnings Presentation
31 slides from China Petroleum & Chemical Corporation Class A's earnings presentation, Aug 28, 2023
Slide 1: 2023 Interim Results Announcement
China Petroleum & Chemical Corporation 2023 Interim Results Announcement August 28, 2023 Hong Kong 中国石油化工股份有限公司 SINOPEC CORP. 中国石油化工股份有限公司 SINOPEC CORP. 1
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: Content
1H 2023 Performance Highlights Content 1H 2023 Operational Results by Segment 2H 2023 Operational Plan Chairman’s Address 中国石油化工股份有限公司 SINOPEC CORP. 3
Slide 4: 1H 2023 Performance Highlights
1H 2023 Performance Highlights 中国石油化工股份有限公司 SINOPEC CORP. 4
Slide 5: Market Environment in 1H 2023
Market Environment in 1H 2023 China’s economy continued to recover and showed a good momentum GDP up by 5.5% YoY International crude oil prices fluctuated with a downward trend and dropped by 25.8% YoY Domestic demand for natural gas picked up, refined oil products demand rebounded, chemical
Slide 6: Maintained Sound Profitability
Maintained Sound Profitability EBIT RMB million 1H 2021 1H 2022 1H 2023 YoY (%) Unit: RMB million 69,733 70,377 Revenue 1,260,773 1,612,126 1,593,682 (1.1) 56,556 EBIT 69,733 70,377 56,556 (19.6) Profit Attributable to 40,227 44,841 36,122 (19.4) Shareholders of the Company EPS (RMB) 0.332 0.370 0.3
Slide 7: Solid Financial Position
Solid Financial Position RMB million As of Dec. 31, 2022 As of Jun. 30, 2023 Total Assets 1,951,121 2,026,902 Short-term Interest-bearing Debts 66,329 106,125 Long-term Interest-bearing Debts 107,961 173,147 Total Equity Attributable to Shareholders of 787,600 795,720 the Company Liability-to-Asset
Slide 8: Cash Flow
Cash Flow RMB million 1H 2022 1H 2023 Net Cash Generated from Operating Activities 4,947 27,562 Net Cash Used in Investing Activities (51,138) (93,430) Net Cash Generated from Financing Activities 75,212 66,861 RMB million As of Dec. 31, 2022 As of Jun. 30, 2023 Cash and Cash Equivalents 145,052 151
Slide 9: Dividend – Emphasis on Shareholders' Return
Dividend – Emphasis on Shareholders’ Return The Board of Directors declared an interim dividend of RMB 0.145 per share Payout ratio was 49.5% The Board of Directors approved the share buy-back proposal RMB Billion 20 55.0% 49.2% 49.5% 46.6% 50.0% 46.4% 44.5% 45.0% 40.0% 19.4 19.4 19.4 17.4 35.
Slide 10: Capital Expenditure
Capital Expenditure 1H 2023 CAPEX: RMB 74.7 Bn E&P: RMB 33.4 Bn Mainly for construction of crude oil capacity and RMB Billion 74.7 storage and transportation facilities 64.7 Refining: RMB 7.1 Bn Mainly for refining structural adjustment projects in Yangzi and Tianjin Marketing & Distribution
Slide 11: Proactive Responds to Climate Change
Proactive Responds to Climate Change Implemented the Company's carbon peaking action plan Major Emission Reduction Indicators 1H 2023 Greenhouse Gas Emissions Reduction 226 (in ’0000 tonnes of Carbon Dioxide equivalent) CO2 recycled (in ’000 tonnes) 843 Methane recovery (billion cubic meters) 0.43
Slide 12: Adhere to Strengthen HSE Management
Adhere to Strengthen HSE Management Carried out Special Rectification for hazardous chemical safety Improved the management model of public health Sustained efforts in the “Green Enterprise Action Plan” Major Environmental Indicators YoY (%) COD in Discharged Wastewater (13) Sulfur Dioxide Emi
Slide 13: 1H 2023 Operational Results by Segment
1H 2023 Operational Results by Segment 中国石油化工股份有限公司 SINOPEC CORP. 13
Slide 14: Upstream – New Achievements In Increasing Reserves, Stabilizing Oil Production
Upstream – New Achievements In Increasing Reserves, Stabilizing Oil Production, Boosting Gas Output and Cutting Costs Intensified efforts in high quality exploration, Natural Gas Production bcf 661 achieved several oil and gas discoveries 614 583 Efficient progress in oil and gas production capa
Slide 15: Upstream – Sustained Improvement in Profitability
Upstream – Sustained Improvement in Profitability Realized Price of Crude Oil Lifting Cost USD/bbl USD/boe 16.7 15.4 95.4 16.1 73.7 58.2 1H 2021 1H 2022 1H 2023 1H 2021 1H 2022 1H 2023 Realized Price of Natural Gas E&P EBIT RMB Million CNY/cubic meter 28,238 26,920 2.0 1.7 1.5 7,752 1H 2021 1H 2022
Slide 16: Refining – Flexible Adjustment of Business Strategy
Refining – Flexible Adjustment of Business Strategy Vigorously increased facility utilization rate Refining Throughput mm tonnes Optimised the rhythm of converting refined 126 127 oil products to chemical feedstock and 121 refining specialties The output of refined oil products increased by 10
Slide 17: Refining – Profitability
Refining – Profitability Refining Margin EBIT of Refining USD/bbl RMB million 11.80 11.18 6.96 39,989 30,180 1H 2021 1H 2022 1H 2023 Cash Operating Cost USD/bbl 4.67 11,191 3.96 4.02 1H 2021 1H 2022 1H 2023 1H 2021 1H 2022 1H 2023 中国石油化工股份有限公司 S I N OS PE C OC P I N OERC P . C O R P. 17 17
Slide 18: Marketing – Gave Full Play to Integration and Network Advantages
Marketing – Gave Full Play to Integration and Network Advantages Domestic Sales Volume of Refined Oil Expanded the market and sales, and improved the quality mm tonnes Products and scale of operations 92 Promoted the development of EV charging and battery swapping services and explore hydrogen e
Slide 19: Marketing – Steady Growth in Profitability
Marketing – Steady Growth in Profitability Marketing Cash Operating Cost EBIT of Marketing RMB/tonne 198.71 182.87 RMB million 175.86 18,402 17,681 17,725 1H 2021 1H 2022 1H 2023 Profit of Non-fuel Businesses RMB million 2,728 2,610 2,312 1H 2021 1H 2022 1H 2023 1H 2021 1H 2022 1H 2023 中国石油化工股份有限公司
Slide 20: Chemicals – Strengthened Structural Adjustment
Chemicals – Strengthened Structural Adjustment Ethylene Production Implemented profit-oriented optimization of raw materials, product slate and facilities utilization ’000 tonnes 6,846 6,875 Strengthened the integration of production, marketing, research and application, and increased high value
Slide 21: Chemicals – Profitability
Chemicals – Profitability Chemical Product Price Index EBIT of Chemicals 180 (CPPI) RMB million 160 18,273 140 120 100 2,322 80 60 40 (6,766) Jan-21 Jan-22 Jan-23 1H 2021 1H 2022 1H 2023 index difference CPPI naphtha index 中国石油化工股份有限公司 S I N OS PE C OC P I N OERC P . C O R P. 21 21
Slide 22: 2H 2023 Operational Plan
2H 2023 Operational Plan 中国石油化工股份有限公司 SINOPEC CORP. 22
Slide 23: Market Outlook for 2H 2023
Market Outlook for 2H 2023 China's economy will continue to improve Demand for natural gas will keep growth Demand for refined oil products will remain strong Demand for petrochemical products will recover gradually International oil price is expected to fluctuate at a moderately high leve
Slide 24: 2023 Production Plan
2023 Production Plan 1H 2023 2H 2023E 2023E Oil and Gas Production (mmboe) 250 246 496 Crude Oil Production (mmbbls) 140 141 281 Natural Gas Production (bcf) 661 631 1,292 Refinery Throughput* (mm tonnes) 127 127 254 Total Domestic Sales Volume of 92 94 186 Refined Oil Products (mm tonnes) Ethylene
Slide 25: Chairman's Address
Chairman’s Address 中国石油化工股份有限公司 SINOPEC CORP. 25
Slide 26: 1H 2023 Highlights – Achieved Resilient Performance
1H 2023 Highlights – Achieved Resilient Performance Brought integration advanteges into full play and achieved resilient performance Strengthened cost control and achieved cost reduction in major operational segments Accelerated transition and upgrading, promoted technology innovation Focuse
Slide 27: 1H 2023 Highlights – Emphasis on Shareholders' Return
1H 2023 Highlights – Emphasis on Shareholders’ Return Maintained the continuity and stability of dividend payout, and implemented value management on a regular basis Sinopec Share Prices 160% Base of 100% Sinopec A share 中国石化A股 Sinopec H share 中国石化H股 140% 上证指数 Shanghai Composite Index 恒生指数 Hang Seng
Slide 28: Looking Ahead – Build the First-class Industrial Chain
Looking Ahead – Build the First-class Industrial Chain Enhance exploration and development efforts and boost Upstream natural gas output Consolidate and enhance competitiveness, scientifically Refining optimise the direction and pace of transition Promote structural adjustment and quality impr
Slide 29: Looking Ahead – Build the First-class Innovation Capabilities
Looking Ahead – Build the First-class Innovation Capabilities Innovation-Driven Strategy Improve the Build Four Systems innovation model 01 Oil and gas E&P Petrochemical 02 Promote whole value chain technologies innovation from basic research to Green technologies industrialization Technol
Slide 30: Looking Ahead – Focus on ESG Management
Looking Ahead – Focus on ESG Management Environment Steadily implement the carbon peak action plan Expand CCUS scale and reduce operating costs Social Responsibilities ESG Actively fulfill social responsibilities, Management enhance brand value and promote sustainable development Corporate Gov
Slide 31: Contact Information
Contact Information Investor relations Beijing: Tel: (8610) 59960028 Fax: (8610) 59960386 Email: ir@sinopec.com Hong Kong: Fax: (852) 28243669 Email: ir.hk@sinopec.com www.sinopec.com 中国石油化工股份有限公司 SINOPEC CORP. 31
China Petroleum & Chemical Corporation (Sinopec Corp.) — H1 2023 Earnings Presentation on 6ix