Asia300

China Petroleum & Chemical Corp.

China

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Mar 24, 2017
Prev close: 6.2
Mar 24, 2017
Market cap:
Market cap(USD):
783,161M
100,826M
Shares: 121,071M

Currency in HKD

Company profile

Market(Ticker): HKG(386)
Sector:
Industry:
Energy Minerals
Integrated Oil
Full time employees: 351,019

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 2015

  • Local currency
  • US Dollar
Revenue 2,198.72B
Gross profit 219,842.02M
Operating income 68,896.06M
Income before tax 59,056.58M
Net income 39,726.71M
EBITDA 189,097.52M
Diluted EPS 0.32
Dividends per share 0.18
Total assets 1,733.40B
Total liabilities 795,761.71M
Total equity 806,058.08M
Operating cash flow 208,370.65M

Currency in HKD

Revenue 283,612.74M
Gross profit 28,357.29M
Operating income 8,886.86M
Income before tax 7,617.67M
Net income 5,124.32M
EBITDA 24,391.58M
Diluted EPS 0.04
Dividends per share 0.02
Total assets 223,661.12M
Total liabilities 102,676.93M
Total equity 104,005.47M
Operating cash flow 26,877.61M

Currency in USD

Valuation measures

Dec 2015

PER 14.26
ROA 2.23%
ROE 5.12%
Operating margin 3.13%
Profit margin 1.80%

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

  • GIC Pte Ltd. (Investment Management)(6.4%)
  • The Vanguard Group, Inc.(4.1%)
  • Hang Seng Investment Management Ltd.(3.6%)
  • BlackRock Fund Advisors(3.0%)
  • China State-Owned Assets Supervision & Admn Commission(2.8%)
  • Schroder Investment Management Ltd.(1.8%)
  • Norges Bank Investment Management(1.6%)
  • FIL Investment Management (Hong Kong) Ltd.(1.6%)
  • BlackRock Advisors (UK) Ltd.(1.5%)
  • State Street Global Advisors Asia Ltd.(1.3%)

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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