Performance of China Petrochemical Corporation in 2009    

China Petrochemical Corporation (Sinopec Group) is China's largest state-owned oil refiner. Its major domestic business is run by its listed company Sinopec Corp, in which Sinopec Group holds 75.84% of shares. In 2009, faced with serious challenges caused by the international financial crisis, Sinopec Group achieved a sales revenue of RMB1.392 trillion, a pre-tax profit of RMB273.9 billion and a net profit of RMB81.7 billion, 80% of which came from its listed arm Sinopec Corp.
   In 2009, Sinopec Group identified 285 million tons of newly discovered geological petroleum reserves and 185.193 billion cubic meters of geological natural gas reserves, produced 42.4155 million tons of crude oil and 8.468 billion cubic meters of natural gas, and expanded its new crude oil capacity to 5.7 million tons per year and added natural gas capacity of 1.2 billion cubic meters annually. In 2009, its eastern oilfields kept up steady production, with a crude oil output of 34.864 million tons, increasing by 10 000 tons from 2008; and its western oilfields produced 7.5514 million tons, increasing by 600 000 tons. Its two major new natural gas projects, Puguang and Songnan gas fields, contributed a lot to the increase of its natural gas output.
   In 2009, Sinopec Group further increased its refining capacity. New and renovated refining units at Fujian Petrochemical Co Ltd, Tianjin Petrochemical Company, Qingdao Petrochemical Company and Zhanjiang Dongxing Petrochemical Company Limited, subsidiaries of Sinopec Group, were all put into operation, making Sinopec Group's refining capacity third in the world. In 2009, Sinopec Group processed 184 million tons of crude oil, up 6.56% year on year, and produced 115 million tons of gasoline, kerosene and diesel oil together, up 5.81%; and 26.96 million tons of chemical light oil, up 15.77%. In 2009, among Sinopec Group's gasoline output, high-grade gasoline accounted for 89.3%, increasing by 0.7% percentage points compared to 2008. In 2009, Sinopec Group achieved a comprehensive product yield rate of 94.53% for oil refining, up 0.49 percentage points compared to 2008; a light oil yield rate of 75.54%, up 0.76 percentage points; a comprehensive unit energy consumption of 61.18 kg standard oil /ton, down 2.7 units; and a processing loss rate of 0.65%, down 0.10 percentage points.
   In 2009, due to the impact of the international financial crisis and the change of China's policies on the price and tax of domestically refined oil, the domestic refined oil market fluctuated violently. Despite the thrashing market, Sinopec Group's annual sales volume of refined oil reached 124 million tons, up 0.85% year on year, with 84.3% sold at the company's own sales terminals.
   Based on its reliable quality and good services, Great Wall Lubricating Oil Company, a subsidiary of Sinopec Group, has established a close partnership with automobile, metallurgy, shipping and machinery manufacturing industries. Its products have entered China FAW Group Corporation, Shanghai General Motors Co Ltd, Shanghai Volkswagen Automotive Co Ltd, China Heavy Duty Truck Group Co Ltd, Baosteel Group and other large-scale enterprises.
   In 2009, the operating performance of Sinopec Group's chemical segment improved significantly over the previous year. Sinopec Group produced 6.7133 million tons of ethylene, up 5.56% year on year, and its output of synthetic resin, synthetic rubber, synthetic fiber raw materials, synthetic fiber polymers, synthetic fibers and urea increased by 6.32%, 8.25%, 7.32%, 14.21%, 3.11% and 6.28% year on year, respectively. It achieved an ethylene yield rate of 31.5%, up 0.28 percentage points; a device loss rate of 0.36%, down 0.09 percentage points and a product energy consumption of 622.63 kg standard oil per ton, down 26.73 kg standard oil per ton. Over the year, Sinopec Group's total sales volume of chemicals reached 29.87 million tons.
   In overseas oil and gas exploration, Sinopec Group achieved a number of important results, including oil and gas projects in Yemen, Nigeria, Kazakhstan and Gabon. In 2009, the output of its oil share overseas reached 12.79 million tons, up 42% year on year. Sinopec Group also made significant progress in the development of new overseas projects. It successfully acquired Addax Petroleum Company and three oilfields in Angola. In particular, through the acquisition of Addax Petroleum, Sinopec Group got 537 million barrels of recoverable petroleum reserves.
   As of the end of 2009, Sinopec Group had implemented 355 petroleum engineering and technological services contracts in 35 countries, with a total value of US$7.9 billion. In 2009, Sinopec Group signed new overseas contracts worth US$2.81 billion and completed overseas contracts worth US$2.43 billion, up 7.7% and 29.2% year on year; respectively. Sinopec Group had a total of 322 overseas construction teams and employed 5 522 Chinese employees and 11 434 foreign employees in the overseas projects.
   In 2009, Sinopec Group set up six joint ventures, including Sinopec SABIC (Tianjin) Petrochemical Co Ltd, Sinopec Mitsubishi Chemical Polycarbonate (Beijing) Co Ltd, Guangzhou Petrochemical Praxair Industrial Gas Co Ltd, Chongqing Linde-SVW Gas Co Ltd and Cangzhou Toray Fine Chemicals Company Limited. Sinopec Group also made much progress in its joint projects, such as BASF-YPC Company Limited's 2-phase expansion project, Fujian Refinery's refining and ethylene integration project, Guangdong refining and chemical integration project, and SVW-BP 600 000 t/a acetic acid project. In addition, Sinopec Group reached strategic cooperation agreements with the Beijing municipal government and Sinotrans & CSC Group.
   In 2009, Sinopec Group imported 138 million tons of crude oil and exported 6.77 million tons of refined oil. It established Sinopec Chemical Sales Company Limited. Its import and export of chemical products grew rapidly. In 2009, Sinopec Group's import and export of chemical products were 3.03 million tons and 986 000 tons, up 65% and 9.5% year on year, respectively. In 2009, its total import and export value of chemical products, catalysts, lubricants and equipment reached US$3.76 billion.
   In 2009, Sinopec Group invested RMB196.3 billion in fixed assets (excluding profits and losses), including RMB72.5 billion in overseas projects, RMB59.5 billion in domestic oilfields, RMB44.8 billion in refineries, RMB16.3 billion in oil sales channels and RMB3.2 billion in R&D.
   In 2009, Sinopec Group's Sichuan-East Gas Transmission Project proceeded as planned. A gas project with a capacity of 2 billion cubic meters of natural gas and its pipelines and stations were built and put it into operation. A gas project with a capacity of 8.5 billion cubic meters of natural gas and its pipelines and stations were basically built. The first and second joint units of a purification plant were put in operation. Construction on the third, fourth, fifth and sixth joint units were basically completed. Most of the 2 150-km-long pipeline was completed and put into operation.
   In 2009, Sinopec Group's 14 key refining and chemical projects went smoothly. A total of 47 refining and chemical production units were put into operation. Its refining and ethylene project in Fujian was fully completed and put into production. Tianjin Petrochemical Company's 1 million t/a ethylene project and its supporting refining project were successfully put into operation and produced qualified products. Out of Zhenhai Refining & Chemical Company's 1 million t/a ethylene project, 82.2% was completed, and the ethylene unit was completed. Changling Petrochemical Company's 10 million t/a oil re