Sinopec Corp. Announces 2009 Interim Results      

China Petroleum & Chemical Corporation (Sinopec Corp., HK: 386; NYSE: SNP; LSE: SNP; SH: 600028) announces its interim results for year ended June 30th, 2009.
    In accordance with the PRC Accounting Standards for Business Enterprises, the company's turnover was RMB534.025 billion, down 26.9% from the same period in 2008. Net profit was RMB33.19 billion, representing an increase of 332.6% over the same period of previous year. EPS was RMB0.383, up 332.6% year-on-year.
   In accordance with the International Financial Reporting Standards (IFRS), the company's turnover and other operating revenues amounted to RMB534.025 billion, down 30.2% from a year earlier. Net profit was RMB33.246 billion, up 332.8%.
  The Exploration and Production Segment achieved steady growth in its oil and gas production, however, its operating profit was RMB5.5 billion, down 79.7% year-on-year, while the operating revenues were RMB46.2 billion, an annual decrease of 52.2%, which was mainly due to the decrease of crude price. The company produced 21 million tons of crude oil in H1, a year-on-year increase of 1.2%, and 4.037 billion cubic meters of natural gas, a decrease of 1.1% year-on-year.
  The Refining Segment recorded an operating profit of RMB19.9 billion, compared with an operating loss for H1 2008, as a result of continuous optimization of crude sources and reduction in crude cost, as well as implementation of domestic pricing mechanism and reform on levies and charges on road transportation. Operating revenues of this segment was RMB301.9 billion, a year-on-year decrease of 29.1%, which was mainly attributable to the fall in the price of refined oil products and sales volume of diesel.
   In H1, the company processed 86.90 million tons of crude oil, an increase of 1.8% over a year ago and the production of oil products was 54.04 million tons, up 3.5%.
  The Marketing and Distribution Segment generated an operating profit of RMB12.5 billion, representing a year-on-year decrease of 44.3%. This decline was mainly attributed to weakened domestic demand for oil products and implementation of domestic pricing mechanism which narrowed gross margin of oil products.
  The Chemicals Segment recorded an operating profit of RMB9.8 billion, up 115.3% year-on-year due to the market development initiatives and the drop in input cost. The operating revenues were RMB90.8 billion, down 31.2%, mainly attributable to the price decrease in raw and auxiliary materials. The company produced 2.97 million tons of ethylene in H1, down 10.1%; 4.738 million tons of synthetic resin, down 4.2%; 3.721 million tons of synthetic fiber monomer and polymer, down 1.2%; 629 thousand tons of synthetic fiber, down 7.6%; 409 thousand tons of synthetic rubber, down 11.1% and 892 thousand tons of urea, up 30.2%.
    In light of the market environment and the current economic situation, the company will conduct the rolling development program for the period from 2009 to 2011. Furthermore, it will promote the integration of the refinery and petrochemical complexes in three regions - the Yangtze River Delta, Pearl River Delta, and Bohai Rim - to ensure the steady supply of refined oil and petrochemical products. By 2011, domestic oil equivalent production in Sinopec Corp. is expected to amount to 55 million tons (approximately 43 million tons of crude oil and 17 billion cubic meters of natural gas); crude oil processing volume to 202 million tons; ethylene capacity to 9.3 million tons per year; and the total sales volume of domestic refined oil products to 135 million tons.