China Petroleum & Chemical Corporation Announces 2012 Annual Results<600028.SS>

Sun Mar 24, 2013 2:17pm EDT

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Integrated business model enhances flexibility to overcome market challenges
BEIJING,  March 24, 2013  /PRNewswire/ -- China Petroleum & Chemical Corporation
("Sinopec" or "the Company") (CH: 600028; HKEX: 386; NYSE: SNP; LSE: SNP) today
announced its annual results for the year ended  31 December 2012.

Financial Highlights:

* In accordance with the PRC Accounting Standards for Business Enterprises
("ASBE"), in 2012, the Company's operating income was  RMB2,786.0 billion, up
11.2% year-on-year, and operating profit was  RMB87.9 billion. Net profit
attributable to equity shareholders of the Company was  RMB63.5 billion, down
11.4% year-on-year. Basic and diluted earnings per share were  RMB0.731  and 
RMB0.704  respectively.  
* In accordance with the International Financial Reporting Standards (IFRS), in
2012, the Company's turnover, other operating revenues and other income was 
RMB2,786.0 billion, up 11.2% year-on-year, operating profit was  RMB98.6
billion. Profit attributable to equity shareholders of the Company was  RMB63.9
billion, down 12.8% year-on-year. Basic and diluted earnings per share were 
RMB0.736  and  RMB0.708  respectively.  
* The Board of Directors proposed a final cash dividend of  RMB0.2  per share.
Combined with the interim dividend of  RMB0.10  per share, the total annual cash
dividend for 2012 is  RMB0.30  per share (tax inclusive), with dividend payout
ratio reaching 41% (2011:36%). In addition, the Board proposed 2 bonus shares
from retained earnings plus 1 bonus share from capital reserve for every 10
existing shares to all shareholders.

Business Highlights:

* Exploration and production segment:  The company realized growth in both oil
and gas reserve and production, and showed significant results in unconventional
oil and gas resource development through exploration activities conducted by the
E&P segment in five key domestic regions, and achieved more than 100%
replacement ratio of domestic oil and gas throughout the year. The Company
officially launched its first shale gas pilot project with production capacity
in Fuling. The Company's crude oil production increased 2.0% year-on-year to
328.28 million barrels; natural gas production increased 15.7% year-on-year to
598.01 billion cubic feet. The segment's operating profit was  RMB70.1 billion. 

* Refining segment:  The Company processed 221 million tonnes of crude oil, an
increase of 1.8% from 2011, and produced 133 million tonnes of oil products, up
by 3.9% from the previous year. The Company actively adjusted its product mix,
which resulted in higher output of products with high market demand, such as
gasoline and jet fuel. Despite the recorded operating loss for the year of 
RMB11.4 billion, gradual improvement in refining margins helped turnaround the
business in the second half of the year, leading to a loss reduction of  RMB
24.3 billion  year-on-year.  
* Marketing and distribution segment:  Sinopec adjusted operation strategies to
actively respond to the changing market demand, as well as actively promoted
one-stop service and specialty goods to achieve stable business growth. In 2012,
the total sales volume of oil products increased to 173 million tonnes, up 6.7%
year-on-year, with domestic refined oil retail volume increasing significantly.
The segment's operating profit was  RMB42.7 billion  in 2012.  
* Chemicals segment:  In 2012, in response to changing market demand, the
Company adjusted facility utilization rate in a timely manner, to focus on
high-value-added products. Production of ethylene was reduced by 4.5% from
previous year to 9.45 million tonnes in 2012. The total sales of chemical
products were 54.35 million tonnes, up 7.0% year on year. The operating profit
of this segment was  RMB1.2 billion.  
* Total capital expenditure  was  RMB168.96 billion  for 2012.

Assets acquisition:

* The Board passed a resolution to form a 50:50 joint venture company ("JV HK")
between the two wholly-owned subsidiaries of the Company and the Group,
respectively. The JV HK will acquire the equity interests of a number of
overseas oil and gas assets owned by Sinopec Group for a total consideration of
approximately  USD3.0 billion, of which the Company, as a 50% JV HK partner,
will be responsible for approximately  USD1.5 billion.

The year 2012 saw decelerated growth globally, a tepid recovery in the U.S.
economy, the outbreak of European sovereign debt crisis and a dramatic slowdown
in the growth of the emerging markets.  China's economy slowed down in the first
half of the year characterised by weak market demand. With the Chinese
government introducing and strengthening macroeconomic control and expediting
structural adjustments, the  China's economy stabilized and then recovered, with
a GDP growth of 7.8% for the year. Based on analysis and projection on the macro
economy and market trends, the Company achieved positive results through
proactive response to market changes, expansion of resources and markets,
management improvement and cost reductions.

Mr. Fu Chengyu, Chairman of Sinopec said, "The world witnessed difficult
macroeconomic conditions in 2012, as well as a complex and volatile environment
in the petroleum and petrochemical markets. By planning ahead, the Company was
able to respond proactively to market dynamics, while also strengthening
corporate governance, increasing shareholder returns and deepening internal
reforms. Its ability to adapt to difficult market conditions leaves the Company
well positioned to build a leading energy and chemicals enterprise and achieve
positive operating results.  

"The acquisition of overseas oil and gas assets from Sinopec Group will further
strengthen our crude oil reserves. This will also enhance our profitability and
international competitiveness, as well as create long-term investment value for
our shareholders. The Company will continue to deepen structural reforms, in
light of strengthening the upstream production capacity and efficiency, and
enhancing the mid and downstream product upgrades. To nurture and develop new
businesses while improving the quality and efficiency of our existing
businesses, Sinopec will endeavor to improve its management capabilities, with a
focus on strategic planning and value-based management. We place great
importance on our green and low-carbon strategy across the entirety of Sinopec's
operations. Sinopec will remain focused on achieving shareholders returns,
engaging in activities to advance corporate social responsibility and promote
sustainable economic development of the Company and of the society."

BUSINESS REVIEW  

Exploration and Production Business



In 2012, the price of international crude oil fluctuated sharply within a wide
range. In the first quarter, the spot price of Platts Brent crude oil rose to 
USD 128/barrel. The second quarter saw a dramatic slump to  USD90/barrel, after
which the price rebounded rapidly and fluctuated in an elevated range. The
annual average spot price of Platts Brent crude oil was  USD111.6/barrel,
representing an increase of 0.3% from 2011.

In 2012, the company realized growth in both oil and gas reserve and production,
and showed significant results in unconventional oil and gas resource
development through exploration activities conducted by the E&P segment in five
key domestic regions, striking a balance between reserve and production. In
exploration, the Company put more efforts to complete 2D seismic measurements
for 23,436 kilometers and 3D seismic measurements for 11,813 square kilometers,
representing a growth of 26% and 4% year-on-year, respectively. It also
completed drilling exploration wells with a total footage of 2,545 kilometers,
an increase of 17% from the previous year.

In crude oil development, the Company expedited development activities in new
blocks and enhanced recovery rates in old blocks. With respect to natural gas
development, the Company sped up construction of production capacity in  Sichuan
 Basin, Ordos Basin and  Dawan Block  of Puguang Gas Field. In terms of
development for unconventional oil and gas resources, the Company met its target
of developing and building horizontal wells with a capacity of 1 billion cubic
meters in Ordos Basin, which is mainly focused on tight gas development.
Moreover, the Company officially launched its first shale gas pilot project with
production capacity in Fuling.

Crude oil production increased 2.0% year-on-year to 328.28 million barrels.
Domestic crude oil production increased 1.1%, while overseas crude oil
production grew 18.1%. Natural gas production increased 15.7% year-on-year to
598.01 billion cubic feet.

In 2012, the operating revenues of this segment were  RMB257.2 billion,
representing an increase of 6.3 % over the same period of 2011. This was mainly
attributable to the increased sales volume of crude oil and natural gas, of 1.07
million tonnes and 2.1 billion cubic meters, respectively. The operating profit
was  RMB70.1 billion, representing a decrease of 2.2 % as compared with 2011.

 Summary of Operations for the Exploration and Production Segment           
                                                                            
                                 2012    2011    2010    Change from    
                                                         
2011 to 2012  
                                                         
(%)           
 Oil and gas production (mmboe)  427.95  407.91  401.42  4.9            
 Crude oil production (mmbbls)   328.28  321.73  327.85  2.0            
 China                           306.60  303.37  302.18  1.1            
 Overseas                        21.68   18.36   25.67   18.1           
 Natural gas production (bcf)    598.01  517.07  441.39  15.7           


                                                       31 December,  31 December,  31 December,  Change from      
                                                       
2012         
 2011        
 2010        
the end of the  
                                                                                                 
previous year   
                                                                                                 
to the end of   
                                                                                                 
the reporting   
                                                                                                 
period (%)      
 Proved reserves of crude oil and natural gas (mmboe)  3,964         3,966         3,963         (0.05)           
 Proved reserves of crude oil (mmbbls)                 2,843         2,848         2,888         (0.2)            
 Proved reserves of natural gas (bcf)                  6,730         6,709         6,447         0.3              
                                                                                                                      
 Notes:                                                                                                               
 
1. Includes 100% of production and reserves of SSI.                                                                 
 
2. For domestic production of crude oil, 1 tonne = 7.1 barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet; for production of crude oil abroad, 1 tonne = 7.27 barrels. 


Refining Business

In 2012, in response to changing market conditions, the Company moderately
increased its refinery throughput and adjusted its product mix, which resulted
in higher production of well-received products, such as gasoline, jet fuel and
high-value-added products. The Company expedited upgrading of oil products
quality, supplying oil products with Beijing V standard in  Beijing  and
steadily advancing its green and low-carbon developments by improving the
efficiency of energy consumption and operations of its refineries, as well as
carrying out various measures for energy conservation and emission reduction.
Major techno-economic indicators improved significantly. The Company
consolidated its sales of LPG and realized sound profits from sales of asphalt
and paraffin wax in order to achieve a better economic efficiency.  

For the whole year, the Company processed 221 million tonnes of crude oil, an
increase of 1.8% from 2011, and produced 133 million tonnes of oil products, up
by 3.9% from the previous year.

In 2012, the operating revenues of this segment totaled  RMB1,270.9 billion,
representing an increase of 4.9 % over the same period of 2011. This was mainly
attributable to the increased sales volumes and the increased products prices.
Despite the recorded operating loss for the year of  RMB11.4 billion, gradual
improvement in refining margins helped turnaround the business in the second
half of the year, leading to a loss reduction of  RMB 24.3 billion 
year-on-year.

 Summary of Operations for the Refining Segment                                              
                                                                   Unit: million tonnes  
                                           2012    2011    2010    Change from           
                                                                   
2011 to 2012         
                                                                   
(%)                  
 Refinery throughput                       221.31  217.37  211.13  1.8                   
 Gasoline, diesel and kerosene production  132.96  128.00  124.38  3.9                   
 Gasoline                                  40.55   37.10   35.87   9.3                   
 Diesel                                    77.39   77.17   76.09   0.3                   
 Kerosene                                  15.01   13.73   12.42   9.3                   
 Light chemical feedstock                  36.33   37.38   35.00   (2.8)                 
 Light products yield (%)                  76.75   76.08   75.79   0.67 percentage       
                                                                   
points               
 Refinery yield (%)                        95.15   95.09   94.83   0.06 percentage       
                                                                   
points               
 Note: 1. Refinery throughput is converted at 1 tonne = 7.35 barrels; 2.Includes 100% of production of joint ventures. 


Marketing and Distribution Business



In 2012, the Company actively responded to market changes, made adjustments to
its operational tactics, and increased market share for its superior service and
product quality. Coordinated and optimized logistics system combined with
centralized procurement brought a drop in purchasing costs and logistics
expenditures. In addition, imposition of enhanced quality supervision and a
strict external procurement system guaranteed the quality of oil products. The
total sales volume of oil products was 173 million tonnes in 2012, among which,
domestic sales volume of oil products was 159 million tonnes, up by 5.2% from
2011, and retail sales volume of oil products increased rapidly by 7.6% from
2011. Meanwhile, the Company actively promoted one-stop service stations and
specialty goods, and realized rapid growth in the non-fuel business.

In 2012, the operating revenues of this segment were  RMB1,471.9 billion,
increased by 9.2 % over 2011. Within which, the sales revenues of gasoline
totaled  RMB 461.2 billion, which increased by 15.5 % comparing with the same
period of 2011; the sales revenues of diesel and kerosene were  RMB727.0 billion
 and  RMB120.2 billion, and increased by 4.4 % and 17.7 %, respectively, over
2011. The operating profit of this segment was  RMB42.7 billion, representing a
decrease of 4.6 % comparing with 2011.

 Summary of Operations, Marketing and Distribution Segment                                                
                                                                                                          
                                                               2012    2011    2010    Change from    
                                                                                       
2011 to 2012  
                                                                                       
(%)           
 Total sales volume of oil products (million tonnes)           173.15  162.32  149.23  6.7            
 Total domestic sales volume of oil products (million tonnes)  158.99  151.16  140.49  5.2            
 Including: Retail sales (million tonnes)                      107.85  100.24  87.63   7.6            
 Direct sales (million tonnes)                                 33.25   33.22   32.40   0.1            
 Wholesale (million tonnes)                                    17.89   17.70   20.47   1.1            
 Annual average throughput per station (tonne/station)         3,498   3,330   2,960   5.0            


                                                         31 December  31 December  31 December  Change from      
                                                         
 2012       
2011        
 2010       
the end of the  
                                                                                                
previous year   
                                                                                                
to the end of   
                                                                                                
the reporting   
                                                                                                
period (%)      
 Total number of service stations under Sinopec brand    30,836       30,121       30,116       2.4              
 Including: Number of company-operated service stations  30,823       30,106       29,601       2.4              


Chemicals Business  



In 2012, in response to changing demand in markets, the Company made timely
adjustments to facility utilization and production scheme, and reduced ethylene
production by 4.5% from the previous year. During the year, the Company combined
its production with market analysis and advancement in technology, optimized its
product mix, actively developed new products and special materials, as well as
increased the output of high-value-added products. Through optimizing the
feedstock mix, reducing the cost of raw materials, keeping operations with a
low-inventory level, and carrying out differentiated marketing, the Company
played a leading role in the market, and realized a total sales volume of
chemical products of 54.35 million tonnes, up by 7% over 2011.

In 2012, the operating revenues of the chemicals segment were  RMB 412.0
billion, representing a decrease of 2.0% as compared with that of 2011.This was
primarily due to the continuing low demand for chemical products as a result of
macroeconomic downturn, which had led to a major drop in chemical product
prices. Operating profit for the chemicals segment was  RMB1.2 billion, a
reduction of  RMB25.5 billion, 95.6% year-on-year.

 Summary of Operations, Chemicals Segment                                          
 Unit: thousand tonnes                                                             
                                      2012    2011    2010    Change           
                                                              
from 2011 to    
                                                              
2012            
                                                              
(%)             
 Ethylene                             9,452   9,894   9,059   (4.5)            
 Synthetic resin                      13,343  13,652  12,949  (2.3)            
 Synthetic rubber                     936     990     967     (5.5)            
 Synthetic fiber monomer and polymer  8,950   9,380   8,864   (4.6)            
 Synthetic fiber                      1,339   1,388   1,393   (3.5)            
 Note: Includes 100% of production of joint ventures.                              


Research and Development



In 2012, Sinopec filed 3,893 domestic and overseas patent applications, with
1,451 granted. The Company received The National Scientific Technology Progress
Special Award for its safe and efficient exploration technology and
industrialized utilization of major ultra-deep sour gas fields, and the Gold
Award of China Patent was granted to the Company for its ethylbenzene production
method from benzene and ethylene by alkylation and for its hydrofining method
for caprolactam.



HSE, Energy Conservation and Emission Reduction



In 2012, the Company complied fully with HSE accountability standards, improved
its rectification of potential hazards, enhanced its capabilities to respond to
emergency, and achieved safe and clean production. The Company paid more efforts
to implement a green, low-carbon development strategy, actively exploited
renewable energy such as bio-mass, further developed its electric vehicle
charging business, optimized the structure of its oil and gas resources,
strengthened measures for environmental protection and treatment, implemented
accountability measures for pollutants and CO2 emission reduction, improved and
adjusted its industrial structure, actively promoted the new green, low-carbon
technology, expedited key energy saving and emission reduction projects, fully
implemented its energy management contract, sped up construction of its energy
management information system and continued to perfect and implement a
human-centered system for employees' welfare and health examinations. Compared
with 2011, the Company's energy intensity dropped by 2.2%, industrial water
demand increased by 0.37%, COD in waste water discharge dropped by 3.67% and
sulfur dioxide discharge fell by 3.75%, while the industrial water recycling
rate held steady at about 95% and the treatment rate on dangerous chemicals and
gaseous, liquid and solid wastes reached 100%. For more detailed information,
please refer to the Company's report on sustainable development.

Capital Expenditure



Capital expenditures of the Company was  RMB168.968 billion  in 2012, of which 
RMB79.071 billion  was spent on the exploration and development segment, mainly
for Shengli shallow water oilfield, Northwest Tahe oil fields, Ordos oil and gas
field,  Northeast Sichuan  natural gas exploration and production project and
Shandong LNG project, resulting in 6,183 thousand tonnes of newly built annual
production capacity for crude oil and 4,663 million cubic meters of newly added
annual production capacity for natural gas.  RMB32.161 billion  was used in the
refining segment, mainly for revamping and expansion of refining projects, as
well as producing clean energy products. The Company built and put into
production a number of projects for oil products quality upgrading, including
Sinopec Shanghai Petrochemical and Jinling Petrochemical Corp.; and successfully
renovated a number of refinery projects in Anqing and Maoming. Capital
expenditure for the marketing and distribution segment was  RMB31.723 billion,
mainly for construction and acquisition of high quality service stations along
highway, in the centre of cities and newly planned urban areas. The Company
accelerated construction of oil product pipelines and warehouses, improved its
oil product sales network and promoted its non-fuel business and value-added
services such as IC card.  RMB23.616 billion  was used in the chemical segment
for mechanical completion of the  Wuhan  ethylene project; to prepare for the
production of the Yizheng 1,4-butylene glycol, Anqing acrylonitrile and Luoyang
polypropylene projects; and to continue with the construction of the  Hainan 
aromatics, Yanshan butyl rubber and  Guangzhou  propylene projects. The
corporate and others spent  RMB2,397 million  on purchasing R&D equipment and
construction of information-technology projects.



ASSETS ACQUISITION

To further strengthen the resource reserves, oil and gas production and
operating efficiency of Sinopec's upstream business, and enhance the long-term,
balanced and sustainable development of its up, mid and down-stream businesses,
the Board passed a resolution to form a 50:50 joint venture company ("JV HK")
between the two wholly-owned subsidiaries of the Company and the Group,
respectively. The JV HK will use its own funds and loans to acquire the equity
interests of a number of overseas oil and gas assets owned by Sinopec Group for
a total consideration of approximately  USD3.0 billion, of which the Company
will be responsible for approximately  USD1.5 billion  as a 50% JV HK partner.
The Company will exercise effective control over the JV HK in accordance with
the contractual arrangements.

The reserve assessment report issued by the independent assessment agencies
showed that the collective proved reserves (1P reserves) of the acquired assets
accounted for a majority of the reserves, with 310 million barrels of proved and
probable reserves (2P reserves).

Upon the completion of the transactions, the scale of Sinopec's oil and gas
reserves and crude production will increase. Crude proved reserves and
production are expected to increase 9.0% and 11.2%, respectively, to 3.1 billion
barrels and 365 million barrels. These transactions will enhance the potential
of Sinopec's earnings and profitability.

BUSINESS PROSPECTS



Looking into 2013, the world economy is expected to recover slowly, with a trend
of tepid growth persisting under the complex and precarious environment. While
the Chinese economy is showing signs of stability and improvements, its domestic
petroleum and petrochemical product markets are still under pressure from both
domestic and overseas macroeconomic conditions. Crude oil price is expected to
fluctuate within an elevated range during 2013.  China's policies to implement
and expedite adjustments in its industrial structure and to promote
industrialization, urbanization, informatization, modernization in agriculture
and growth in domestic consumer demand, as well as optimize the pricing
mechanism for oil products and natural gas will combine to create favorable
conditions for the Company's reform and development.

In 2013, through safe and stable operations and its market-oriented strategy,
the Company will emphasize the quality and efficiency of its development
activities. Driven by improvements in management and technical innovations, the
Company will strive to fully exploit its markets, optimize production and
operations, take full advantage of its existing assets, and actively reduce its
costs and expenses.

In exploration, aiming at findings of oil and gas resources, the Company will
make more efforts in exploring new blocks and fields, focus on major oil and gas
blocks with potentials of additional reserve, and accelerate exploration
activities for breakthroughs. In development, with southern  Hubei  and western
Junggar as major targets, the Company is going to increase production in  West
China. Meanwhile, Efforts in East China and  Northeast China  will be expedited
to create new areas with potential growth. The Company will conduct enhanced
recovery in mature blocks; apply new technologies to increase recovery rates;
strive for rapid growth in production and reserve of crude oil; build up
production capacity in a number of blocks, such as Yuanba Gas Field; streamline
logistic facilities, including pipelines, LNG terminals and gas storage
reservoirs; extend the value chain of natural gas; increase market share; build
up production capacities for the pilot project of Fuling shale gas; conduct
in-depth fundamental research in shale oil and pursue major breakthroughs. In
2013, the Company plans to produce 46.43 million tonnes of crude oil and 18.1
billion cubic meters of natural gas.

In refining segment, the Company will closely track and analyze oil price trend,
optimize the procurement and allocation of crude oil and reduce the purchasing
cost of crude oil. The Company will also utilize newly added refinery capacity
and increase refinery throughput; actively upgrade the quality of oil products
and supply cleaner oil products to the market; coordinate production with sales,
making timely adjustments to product mix and refinery utilization to increase
the production of well received products and high-value-added products; take the
advantage of its consolidated sales function and optimize the marketing at for
LPG, asphalt and paraffin wax. In 2013, the targets for refinery throughput and
oil products output are slated at 238 million tonnes and 145 million tonnes
respectively.

The Company will seek to optimize its market monitoring system and enhance
market analysis and forecasts to achieve maximum results in its marketing
segment. Besides increasing its total sales volume, the Company will focus on
the retail market and introduce special services to expand retail operations;
promote standardized services to enhance customer loyalty; implement strict
quality controls over outsourced oil products; and actively promote its non-oil
product business, expand the brand name of Easyjoy online service, and increase
sales volume and improve profitability. The target for total domestic sales of
oil products is 165 million tonnes for 2013.  

In chemicals segment, the Company will further optimize the structure of raw
materials, with a larger proportion of light chemical feedstock to reduce costs;
produce more well received, profitable and competitive products with the tactics
of "sales - oriented productions target, production - oriented supply volume and
market promotion based on production"; integrate production, sales and research;
make adjustments to product mix and promote the R&D, production and sales of new
products; emphasize market analysis, optimize marketing strategy and enhance
customer service; and improve management of the supply chain and carry out a low
inventory level tactics with the aim of achieving 100% sales to production
ratio. The company plans to produce 9.83 million tonnes of ethylene in 2013.

APPENDIX



FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH  CHINA  ACCOUNTING
STANDARDS FOR BUSINESS ENTERPRISES ("ASBE")

                                                                  For the years ended 31 December                        
                                                                  2012          2011          Change    2010          
 Items                                                            RMB millions  RMB millions  %         RMB millions  
 Operating income                                                 2,786,045     2,505,683     11.2      1,913,182     
 Operating profit                                                 87,926        100,966       (12.9)    101,352       
 Profit before taxation                                           90,107        102,638       (12.2)    102,178       
 Net profit attributable to equity shareholders of the Company    63,496        71,697        (11.4)    70,713        
 Net profit attributable to equity shareholders of the Company    61,922        70,453        (12.1)    68,345        
 
before extraordinary gain and loss                                                                                  
 Net cash flow from operating activities                          143,462       151,181       (5.1)     171,262       
                                                                                                                        
                                                                  At 31 December                                         
                                                                  2012          2011          Change    2010          
 Items                                                            RMB millions  RMB millions  %         RMB millions  
 Total assets                                                     1,247,271     1,130,053     10.4      985,389       
 Total liabilities                                                696,670       620,528       12.3      532,707       
 Total equity attributable to equity shareholders of the Company  513,374       474,399       8.2       421,127       
 Total shares (10,000 shares)                                     8,682,029     8,670,256     0.1       8,670,253     


FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS PREPARED IN
ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS")

                                                               Unit: RMB millions                                         
                                                               For the years ended 31 December                            
 Items                                                         2012       2011       2010       2009       2008       
                                                                                                                      
 Turnover, other operating revenues and other income           2,786,045  2,505,683  1,913,182  1,345,052  1,495,148  
 Operating profit                                              98,662     105,530    104,974    90,669     38,551     
 Profit before taxation                                        90,642     104,565    103,663    86,574     33,412     
 Profit attributable to equity shareholders of the Company     63,879     73,225     71,782     63,129     31,180     
 Basic earnings per share (RMB)                                0.736      0.845      0.828      0.728      0.360      
 Diluted earnings per share (RMB)                              0.708      0.812      0.820      0.723      0.319      
 Return on capital employed (%)                                9.09       11.49      12.95      11.67      5.92       
 Return on net assets (%)                                      12.50      15.50      17.11      16.63      9.44       
 Net cash generated from operating activities per share (RMB)  1.640      1.737      1.965      1.909      0.997      


                                                                  Unit: RMB millions                               
                                                                  As at 31 December                                
 Items                                                            2012     2011     2010     2009     2008     
 Non-current assets                                               901,678  801,773  735,593  697,474  635,533  
 Net current liabilities                                          148,358  101,485  76,177   114,442  126,570  
 Non-current liabilities                                          205,284  192,944  208,380  177,526  156,263  
 Non-controlling interests                                        37,122   35,016   31,432   25,991   22,324   
 Total equity attributable to equity shareholders of the Company  510,914  472,328  419,604  379,515  330,376  
 Net assets per share (RMB)                                       5.885    5.448    4.840    4.377    3.810    
 Adjusted net assets per share (RMB)                              5.764    5.339    4.747    4.299    3.719    


The following table sets forth the operating revenues, operating expenses and
operating profit/(loss) by each segment before elimination of the inter-segment
transactions for the periods indicated, and the change rate of 2012 compared to
2011.

                                       Year ended 31 December               
                                       2012          2011          Change  
                                       RMB millions                 (%)     
 Exploration and Production Segment                                        
 Operating revenues                    257,185       241,838       6.3     
 Operating expenses                    187,131       170,207       9.9     
 Operating profit                      70,054        71,631        (2.2)   
 Refining Segment                                                          
 Operating revenues                    1,270,912     1,212,072     4.9     
 Operating expenses                    1,282,356     1,247,852     2.8     
 Operating loss                        (11,444)      (35,780)      (68.0)  
 Marketing and Distribution Segment                                        
 Operating revenues                    1,471,882     1,347,626     9.2     
 Operating expenses                    1,429,230     1,302,930     9.7     
 Operating profit                      42,652        44,696        (4.6)   
 Chemicals Segment                                                         
 Operating revenues                    411,964       420,490       (2.0)   
 Operating expenses                    410,786       393,758       4.3     
 Operating profit                      1,178         26,732        (95.6)  
 Corporate and others                                                      
 Operating revenues                    1,312,970     1,134,182     15.8    
 Operating expenses                    1,315,413     1,136,822     15.7    
 Operating loss                        (2,443)       (2,640)       (7.5)   
 Elimination of inter-segment profits  (1,335)       891           -       


About Sinopec

Sinopec is one of the largest integrated energy and chemical companies with
upstream, midstream and downstream operations in  China. Its principal
operations include: the exploration and production, pipeline transportation and
sales of petroleum and natural gas; the sales, storage and transportation of
petroleum products, petrochemical products, synthetic fiber, fertilizer and
other chemical products; import & export, as well as import and export agency
business of oil, natural gas, petroleum products, petrochemical and chemical
products, and other commodities and technologies; and research, development and
application of technologies and information.  

Adhering to its corporate mission of "Enterprise development, Contribution to
the Country, Shareholder value creation, Social responsibility and Employee
wellbeing", Sinopec implements strategies of resources, markets, integration,
internationalization, differentiation and green low-carbon development with a
view to realize its vision of building a world first class energy and chemical
company.

Disclaimer

This press release includes "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, reserve volume, other
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 the price fluctuation, possible
changes in actual demand, foreign exchange rate, results of oil exploration,
estimates of oil and gas reserves, market shares, competition, environmental
risks, possible changes to laws, finance and regulations, conditions of the
global economy and financial markets, political risks, possible delay of
projects, government approval of projects, cost estimates and other factors
beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the
forward-looking statements referred to herein as of today and undertakes no
obligation to update these statements.

                                                               
 Investor Inquiries:       Media Inquiries:                    
 Beijing                                                       
 Tel:  (8610) 5996 0028    Tel:  (8610) 5996 0028              
 Fax: (8610) 5996 0386     Fax: (8610) 5996 0386               
 Email:  ir@sinopec.com    Email:  media@sinopec.com           
                                                               
 Hong Kong                                                     
 Tel:  (852) 2824 2638     Tel:  (852) 3512 5000               
 Fax: (852) 2824 3669      Fax:  (852) 2259 9008               
 Email:  ir@sinopechk.com  Email:  sinopec@brunswickgroup.com  


SOURCE  China Petroleum & Chemical Corporation

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