Report on the Economic Evaluation of the Crude Oil Processing
and Oil Product Manufacturing Sector in China in 2006

By CPCIA   

  1  Overall evaluation of the crude oil processing and oil
product manufacturing sector in China in 2006

    (1) Main economic indexes

In the crude oil processing and oil product manufacturing sector
there were 1 012 enterprises with a considerable scale (all
state-owned enterprises and also non state-owned enterprises
with a sales revenue of over RMB5.0 million in 2005) and the total
employment was 381 900 persons. The sales revenue accomplished
in 2006 was RMB1319.224 billion, an increase of 27.13% over
RMB1037.699 in 2005; The asset value was RMB533.776 billion, an
increase of 16.67% over RMB457.496 billion in 2005.
    Main economic indexes had different trends in previous years.
The asset value increased at first and had a drop later. It went
all way down to the bottom in 2002 and 2003 and started to recover
in 2004. The sales revenue and the industrial total production
value increased stably and entered a period of rapid growth in
2003. The profit had small growth from 2002 to 2003. The growth
of the profit was the most rapid in 2004 and the total profit
reached RMB20.745 billion in the year, an increase of 156.02%
over 2003. The sustained crude oil price in the international
market starting from 2005 led to a loss in the crude oil
processing and oil product manufacturing sector in China. The
loss was RMB18.903 billion in 2005 and RMB39.097 billion in 2006.

    (2) Regional distribution

The regional distribution of the crude oil processing and oil
product manufacturing sector was not even. Major refineries are
located in the central region and the eastern region. Liaoning
province held the first place and its sales revenue was
RMB204.639 billion; Shandong province held the second place and
the sales revenue was RMB163.025 billion; Guangdong province
held the third place and the sales revenue was RMB122.235
billion.

    (3) Performance evaluation

The rate of profit/sales in the sector was 1.09% in 2002, 1.42%
in 2003 and 2.71% in 2004 and a stable growth was achieved. The
rate of profit/net asset was 1.51%, 2.55% and 5.71% respectively
in these 3 years. The trend of the per-capita profit created was
basically identical to the trend of the above-mentioned 2
indexes. The profit had a negative growth from 2005 to 2006. It
was mainly because the high crude oil price in the international
market and the belated oil product price readjustment in China
due to the government control resulted in a negative growth in
the rate of profit/sales and the rate of profit/net asset.


  2  Economic evaluation of top 100 enterprises in the sector

    (1) Scale analysis

In top 100 enterprises in the sector, the sales revenue of large
enterprises accounted for 80% and held a dominant position; The
sales revenue of medium enterprises accounted for 17%; sales
revenue of small enterprises accounted for 3% only.

    (2) Regional distribution

The region with the most top 100 enterprises in 2006 was Liaoning
province and the sales revenue was RMB187.017 billion; Shandong
province held the second place and the sales revenue was
RMB144.071 billion; Guangdong province held the third place and
the sales revenue was RMB110.157 billion. The sales revenue of
the crude oil processing sector in these provinces also held a
leading position in China.

    (3) Economic type analysis

In top 100 enterprises in the sector, state-owned and
state-controlled enterprises held the first place and their
sales revenue accounted for 88.65%; Foreign-funded enterprises
held the second place and their sales revenue accounted for 5.94%;
Collective enterprises held the third place and their sales
revenue accounted for 3.96%. The sales revenue of private
enterprises held a very small proportion of 1.45% only.

    (4) Performance evaluation

In top 100 enterprises in the sector, the rate of profit/sales
was -3.60%, the rate of profit/asset was -9.18% and the
per-capita profit created was -RMB155 100. There was not much
difference compared with the -2.97% rate of profit/sales, the
-9.18% rate of profit/asset and the -RMB102 400 per-capita
profit created in the entire crude oil processing and oil product
manufacturing sector.