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Energy Minerals

China Petroleum & Chemical Corp.

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.

Business Summary

China Petroleum & Chemical Corp. engages in the exploration, development and production of crude oil and natural gas. It operates through the following segments: Exploration and Production; Refining; Marketing and Distribution; Chemicals; and Corporate and Others. The Exploration and Production segment consists of activities related to exploring for and developing, producing, and selling crude oil and natural gas. The Refining segment purchases crude oil from its exploration and production segment and from third parties, processing of crude oil into refined oil products, and selling refined oil products principally to its marketing and distribution segment. The Marketing and Distribution segment includes refined oil products from its refining segment and third parties, and marketing, selling and distributing refined oil products by wholesale to large customers and independent distributors, and retail through its retail network. The Chemicals segment focuses on chemical feedstock principally from the refining segment and producing, marketing, selling, and distributing chemical product. The Corporate and Others segment comprises of trading activities of the import and export subsidiaries, and its research and development activities. The company was founded on February 25, 2000 and is headquartered in Beijing, China.

Financial Highlights

Dec 2019 HKDUSD
Revenue3,013.89B384,661.19M
Gross Profit84,844.16M10,828.59M
Operating income95,248.98M12,156.55M
Income before tax87,481.65M11,165.21M
Net income65,160.51M8,316.38M
EBITDA220,240.59M28,109.12M
Diluted EPS0.530.06
Dividends Per Share0.330.04
Total Assets1,963.21B251,959.02M
Total liabilities983,509.34M126,223.63M
Total equity825,691.19M105,969.24M
Operating cash flow186,671.00M23,824.66M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 2,148.14B 1,925.76B 2,381.32B 3,054.84B 3,013.89B
Gross Profit 102,209.90M 98,251.14M 105,822.24M 102,173.36M 84,844.16M
Operating income 67,713.15M 81,252.99M 98,980.97M 100,824.26M 95,248.98M
Income before tax 59,267.51M 82,776.60M 80,914.41M 100,839.66M 87,481.65M
Net income 40,102.92M 54,532.42M 59,088.78M 72,983.67M 65,160.51M
EBITDA 195,551.09M 217,898.36M 241,602.83M 240,975.95M 220,240.59M
Diluted EPS 0.33 0.45 0.48 0.60 0.53
Dividends Per Share 0.18 0.28 0.61 0.47 0.33
Total Assets 1,727.32B 1,671.91B 1,915.31B 1,815.79B 1,963.21B
Total liabilities 786,648.10M 744,550.07M 891,467.50M 839,043.99M 983,509.34M
Total equity 807,045.11M 793,214.35M 871,667.36M 817,959.92M 825,691.19M
Operating cash flow 201,331.18M 249,965.61M 227,821.14M 220,798.78M 186,671.00M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 277,087.49M 248,087.51M 305,580.08M 389,770.35M 384,661.19M
Gross Profit 13,183.99M 12,657.22M 13,579.45M 13,036.39M 10,828.59M
Operating income 8,734.28M 10,467.43M 12,701.56M 12,864.26M 12,156.55M
Income before tax 7,644.88M 10,663.71M 10,383.20M 12,866.23M 11,165.21M
Net income 5,172.85M 7,025.15M 7,582.46M 9,312.05M 8,316.38M
EBITDA 25,224.02M 28,070.79M 31,003.27M 30,746.35M 28,109.12M
Diluted EPS 0.04 0.05 0.06 0.07 0.06
Dividends Per Share 0.02 0.03 0.07 0.06 0.04
Total Assets 222,876.04M 215,642.70M 245,009.82M 231,922.17M 251,959.02M
Total liabilities 101,501.00M 96,031.94M 114,037.77M 107,166.49M 126,223.63M
Total equity 104,132.83M 102,308.65M 111,504.91M 104,473.54M 105,969.24M
Operating cash flow 25,969.59M 32,201.86M 29,234.76M 28,171.93M 23,824.66M

Valuation Measures

Dec 2019
PER7.79
ROA3.44%
ROE7.92%
Operating margin3.16%
Profit margin2.16%

Key executives

  • President, General Manager & Executive Director: Yong Sheng Ma
  • Chief Financial Officer: Donghua Shou
  • Executive Director & Senior Vice President: Yi Qun Ling
  • Senior Vice President: Ge Chen
  • Non-Executive Director & Senior Vice President: Bao Cai Yu

Shareholders

  • GIC Pte Ltd. (Investment Management) (9.0%)
  • The Vanguard Group, Inc. (4.6%)
  • Schroder Investment Management Ltd. (3.7%)
  • BlackRock Fund Advisors (3.2%)
  • China State-Owned Assets Supervision & Admn Commission (2.8%)
  • Fidelity Management & Research Co. LLC (2.5%)
  • Hang Seng Investment Management Ltd. (2.2%)
  • Norges Bank Investment Management (2.0%)
  • Dimensional Fund Advisors LP (1.7%)
  • Schroder Investment Management (Singapore) Ltd. (1.6%)

Contact Details

Related Companies

  • Sinopec Xinjiang Coal Natural Gas Export Pipeline Co. Ltd.
  • China Petroleum & Chemical Corp. /3 Subs/
  • Sinopec International (Australia) Pty Ltd.
  • Sinopec Great Wall Gas Investment Co., Ltd.
  • Sinopec Zhongyuan Petroleum Exploration Bureau
  • Great Wall Gas
  • Sinopec Capital Co., Ltd.
  • Sinopec Beihai Refining & Chemical Co., Ltd.
  • Sinopec Shanghai SECCO Petrochemical Co., Ltd.
  • Sinopec-SK(Wuhan) Petrochemical Co., Ltd.
  • Sinopec Shanghai Gaoqiao Petroleum & Chemical Ltd.
  • Sinopec Chemical Commercial Holding (Singapore) Pte Ltd.
  • Sinopec Refinery Sales (Fujian) Co., Ltd.
  • China Petroleum & Chemical Corp. (Jiujiang Branch)
  • SINOPEC Fujian Refining & Chemical Co., Ltd.
  • Sinopec Geophysical Research Institute
  • SINOPEC Research Institute of Petroleum Engineering
  • SINOPEC Qingdao Safety Engineering Institute
  • SINOPEC Shanghai Research Institute of Petrochemical Technolog
  • SINOPEC Fushun Research Institute of Petroleum & Petrochemic
  • Sinopec Gansu Oil Products Co.
  • Sinopec Qinghai Oil Products Co.
  • Sinopec Heilongjiang Oil Products Co.
  • SINOPEC Jilin Oil Products Co.
  • SINOPEC Xinjiang Oil Products Co.
  • Sinopec Shaanxi oil products Co.
  • Sinopec Chongqing Petroleum Co.
  • SINOPEC Liaoning Oil Products Co.
  • SINOPEC Guizhou Oil Products Co.
  • SINOPEC Guangxi Oil Products Co.

Competitors

  • PetroChina Company Limited Class H
  • Petroleo Brasileiro SA Pfd
  • BASF SE
  • Dow, Inc.
  • SK Innovation Co., Ltd
  • Formosa Chemicals & Fibre Corporation
  • Sumitomo Chemical Co., Ltd.
  • Honeywell International Inc.
  • AdvanSix, Inc.
  • Albemarle Corporation
  • Sinochem International Corporation Class A
  • CNOOC Limited
  • W R Grace & Co
  • Qingdao Copton Technology Co., Ltd. Class A
  • Taiwan Prosperity Chemical Corporation
  • Trinseo SA
  • TSRC Corporation
  • Taiwan Fertilizer Co., Ltd.
  • Enauta Participacoes S.A.
  • Fuchs Petrolub SE Pref
  • Valvoline Inc.
  • Zig Sheng Ind. Co., Ltd
  • Taiwan Cement Corp.
  • ADES International Holding Plc
  • Birchcliff Energy Ltd.
  • Central Petroleum Limited
  • Fuwei Films (Holdings) Co., Ltd.
  • Jersey Oil & Gas PLC
  • PT Wintermar Offshore Marine Tbk
  • Tourmaline Oil Corp.
Last Updated on 28 Oct, 2020

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