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Energy Minerals

China Petroleum & Chemical Corp.

  • 6.18 HKD
  • +0.07
  • +1.15%
  • China
    Apr 18, 2019
  • Ticker
    HKG(386)
  • Prev. close
    6.11
  • Market cap (HKD)
    809,951.25M
  • Market cap (USD)
    103,243.12M
  • Shares
    121,071.20M

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 2018 HKDUSD
Revenue3,132.50B399,679.05M
Gross Profit274,185.67M34,983.61M
Operating income100,895.33M12,873.33M
Income before tax102,488.42M13,076.59M
Net income74,726.01M9,534.36M
EBITDA232,849.42M29,709.48M
Diluted EPS0.610.07
Dividends Per Share0.480.06
Total Assets1,824.25B233,002.61M
Total liabilities846,221.40M108,083.22M
Total equity819,181.25M104,629.53M
Operating cash flow221,004.88M28,198.22M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 3,315.86B 2,200.56B 1,985.03B 2,450.19B 3,132.50B
Gross Profit 243,799.81M 220,072.68M 227,430.32M 255,884.97M 274,185.67M
Operating income 92,768.72M 68,680.20M 82,130.47M 99,623.24M 100,895.33M
Income before tax 79,099.83M 58,875.26M 82,456.46M 80,771.43M 102,488.42M
Net income 59,692.05M 39,817.98M 54,233.31M 58,944.64M 74,726.01M
EBITDA 214,458.46M 188,995.14M 210,051.26M 234,316.48M 232,849.42M
Diluted EPS 0.51 0.32 0.44 0.48 0.61
Dividends Per Share 0.25 0.18 0.28 0.61 0.48
Total Assets 1,814.17B 1,738.34B 1,680.19B 1,920.52B 1,824.25B
Total liabilities 1,005.32B 795,996.83M 751,394.53M 895,259.71M 846,221.40M
Total equity 743,089.37M 808,645.60M 794,595.51M 873,016.66M 819,181.25M
Operating cash flow 189,608.79M 208,629.68M 255,382.40M 229,972.80M 221,004.88M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 427,594.93M 283,849.18M 255,722.12M 314,417.17M 399,679.05M
Gross Profit 31,439.04M 28,387.05M 29,298.75M 32,836.00M 34,983.61M
Operating income 11,962.93M 8,859.02M 10,580.47M 12,783.98M 12,873.33M
Income before tax 10,200.26M 7,594.28M 10,622.46M 10,364.85M 13,076.59M
Net income 7,697.55M 5,136.09M 6,986.61M 7,563.97M 9,534.36M
EBITDA 27,655.35M 24,378.37M 27,059.89M 30,068.26M 29,709.48M
Diluted EPS 0.06 0.04 0.05 0.06 0.07
Dividends Per Share 0.03 0.02 0.03 0.07 0.06
Total Assets 233,940.69M 224,298.52M 216,711.12M 245,676.13M 233,002.61M
Total liabilities 129,637.81M 102,707.27M 96,914.74M 114,522.87M 108,083.22M
Total equity 95,822.53M 104,339.34M 102,486.79M 111,677.51M 104,629.53M
Operating cash flow 24,450.87M 26,911.02M 32,899.68M 29,510.86M 28,198.22M

Valuation Measures

Dec 2018
PER9.05
ROA3.99%
ROE8.83%
Operating margin3.22%
Profit margin2.38%

Key executives

  • President & Executive Director: Yong Sheng Ma
  • Chief Financial Officer: De Hua Wang
  • Executive Director & Senior Vice President: Yi Qun Ling
  • Senior Vice President: Dian Wu Lei
  • Executive Director & Senior Vice President: Zhong Yun Liu

Shareholders

  • Schroder Investment Management Ltd. (4.9%)
  • The Vanguard Group, Inc. (4.5%)
  • BlackRock Fund Advisors (4.4%)
  • China State-Owned Assets Supervision & Admn Commission (2.8%)
  • Schroder Investment Management (Hong Kong) Ltd. (2.0%)
  • Fidelity Management & Research Co. (1.9%)
  • FIL Investment Management (Hong Kong) Ltd. (1.4%)
  • APG Asset Management NV (1.3%)
  • State Street Global Advisors Asia Ltd. (1.2%)
  • Matthews International Capital Management LLC (1.1%)

Contact Details

Related Companies

  • 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.
  • SINOPEC Hunan Oil Products Co.
  • SINOPEC Hubei Oil Products Co.
  • SINOPEC Henan Oil Products Co.
  • SINOPEC Jiangxi Oil Products Co.
  • SINOPEC Fujian Oil Products Co.
  • SINOPEC Zhejiang Oil Products Co.
  • SINOPEC Jiangsu Oil Products Co.

Competitors

  • Royal Dutch Shell Plc Class B
  • PetroChina Company Limited Class H
  • BASF SE
  • Dow, Inc.
  • SK Innovation Co., Ltd
  • Sumitomo Chemical Co., Ltd.
  • Formosa Chemicals & Fibre Corporation
  • Honeywell International Inc.
  • Braskem S.A. Pfd A
  • AdvanSix, Inc.
  • Albemarle Corporation
  • Sinochem International Corporation Class A
  • CNOOC Limited
  • W R Grace & Co
  • Taiwan Prosperity Chemical Corporation
  • Trinseo SA
  • Taiwan Fertilizer Co., Ltd.
  • Fuchs Petrolub SE Pref
  • Valvoline Inc.
  • ADES International Holding Plc
  • Blue Energy Limited
  • CGG
  • Hubei Guochuang Hi-Tech Material Co ltd Class A
Last Updated on 18 Apr, 2019

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