Asia300

China Petroleum & Chemical Corp.

China

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Jul 24, 2017
Prev close: 5.98
Jul 24, 2017
Market cap:
Market cap(USD):
823,290.43M
105,469.06M
Shares: 121,071.20M

Currency in HKD

Company profile

Market(Ticker): HKG(386)
Sector:
Industry:
Energy Minerals
Integrated Oil
Full time employees: 451,611

Business summary

China Petroleum & Chemical Corp. is an energy and chemical company. It engages in the exploration, production and transportation of petroleum products such as crude oil and natural gas. The company operates through the following business segments: Exploration & Production, Refining, Marketing & Distribution, Chemicals, and Corporate & Others. The Exploration & Production segment explores crude oil and natural gas. The Refining segment processes crude oil and natural gas to produce petroleum products. The Marketing & Distribution segment operates service stations, and sells refined products at wholesale or retail. The Chemicals segment manufactures and sells chemical products. The Corporate & Others segment includes trading, research and development activities of the company. China Petroleum & Chemical was founded on February 25, 2000 and is headquartered in Beijing, China.

Company background

China Petroleum & Chemical (Sinopec) is a core subsidiary of China Petrochemical, or Sinopec Group. The parent falls under the purview of China's State Council.

Sinopec is one of the world's largest oil companies. It dominates the domestic oil and gas business alongside state-owned PetroChina. It develops resources in addition to making petroleum and petrochemical products.

Sinopec Group was founded as a general oil company in 1998, on the basis of the former China Petrochemical Corporation. The parent incorporated Sinopec in 2000; the unit listed on the Hong Kong, London and New York bourses the same year. Sinopec Group controls 70% of the subsidiary's outstanding shares.

The company is China's biggest retailer of gasoline, with 30,000 stations across the country. Sinopec enjoys a robust operating base that is protected by government regulations. Sinopec alone accounts for 60-70% of China's crude oil imports.

To meet China's huge demand for energy, Sinopec actively pursued resource concessions abroad. Under President Xi Jinping, however, it has eased up on such spending. The government is looking to guide the economy onto a slower but more stable growth trajectory.

The company is now focusing on shale gas development in China.

At the same time, it is accelerating management reforms. Privatizing gas stations is one initiative. Yet Sinopec's profitability is far lower than major rivals in the U.S. and Europe, suggesting inefficiencies remain.

In a country grappling with severe air pollution, critics say Sinopec could and should do more to protect the environment.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 1,985.03B
Gross profit 227,430.32M
Operating income 82,123.46M
Income before tax 82,456.46M
Net income 54,233.31M
EBITDA 210,044.25M
Diluted EPS 0.44
Dividends per share 0.28
Total assets 1,680.19B
Total liabilities 751,394.53M
Total equity 794,595.51M
Operating cash flow 255,382.40M

Currency in HKD

Revenue 255,722.12M
Gross profit 29,298.75M
Operating income 10,579.57M
Income before tax 10,622.46M
Net income 6,986.61M
EBITDA 27,058.99M
Diluted EPS 0.05
Dividends per share 0.03
Total assets 216,711.12M
Total liabilities 96,914.74M
Total equity 102,486.79M
Operating cash flow 32,899.68M

Currency in USD

Valuation measures

Dec 2016

PER 12.29
ROA 3.17%
ROE 6.76%
Operating margin 4.13%
Profit margin 2.73%

Key executive

  • Vice Chairman & President: Hou Liang Dai
  • Chief Financial Officer: Dehua Wang
  • Executive Director & Senior Vice President: Zhi Gang Wang
  • Executive Director & Senior Vice President: Hai Chao Zhang
  • Executive Director & Senior Vice President: Fang Zheng Jiao

Share holders

  • The Vanguard Group, Inc.(3.3%)
  • Hang Seng Investment Management Ltd.(2.6%)
  • BlackRock Fund Advisors(2.3%)
  • China State-Owned Assets Supervision & Admn Commission(2.1%)
  • Schroder Investment Management Ltd.(1.4%)
  • FIL Investment Management (Hong Kong) Ltd.(1.2%)
  • Norges Bank Investment Management(1.2%)
  • State Street Global Advisors Asia Ltd.(1.1%)
  • Templeton Asset Management Ltd. (Hong Kong)(1.0%)
  • APG Asset Management NV(0.9%)

Address

  • Website: http://english.sinopec.com/about_sinopec
  • Address: 22 Chaoyangmen North Street, Chaoyang District, Beijing, 100728, China
  • Phone: +86.10.59960028

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