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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 oil and gas and chemical business. The oil and gas business includes exploration, development and production of crude oil and natural gas; pipeline crude oil and natural gas; refining crude oil into petroleum products; and marketing crude oil, natural gas, and refined oil. The chemical business includes the manufacture and marketing of a wide range of industrial chemical products. The company was founded on February 25, 2000 and is headquartered in Beijing, China.

Financial Highlights

Dec 2022 HKDUSD
Revenue3,551.63B453,565.01M
Gross Profit167,728.89M21,419.97M
Operating income104,090.39M13,292.96M
Income before tax92,938.38M11,868.78M
Net income76,927.88M9,824.14M
EBITDA233,180.33M29,778.51M
Diluted EPS0.540.07
Dividends Per Share0.400.05
Total Assets2,211.26B283,316.31M
Total liabilities1,160.11B148,638.75M
Total equity881,020.62M112,879.72M
Operating cash flow148,240.22M18,931.15M
Currency in HKDCurrency in USD

Historical Data

HKD | USD
 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 3,054.84B 3,010.73B 2,037.97B 2,917.17B 3,551.63B
Gross Profit 102,173.36M 91,419.74M 19,968.03M 133,915.80M 167,728.89M
Operating income 100,824.26M 95,001.79M 17,077.89M 135,988.77M 104,090.39M
Income before tax 100,839.66M 87,589.37M 47,086.12M 103,546.90M 92,938.38M
Net income 72,983.67M 65,192.26M 37,579.67M 86,745.05M 76,927.88M
EBITDA 240,975.95M 220,401.61M 139,340.22M 276,775.48M 233,180.33M
Diluted EPS 0.52 0.47 0.27 0.58 0.54
Dividends Per Share 0.47 0.33 0.15 0.55 0.40
Total Assets 1,815.79B 1,985.35B 2,087.58B 2,338.47B 2,211.26B
Total liabilities 839,043.99M 1,004.00B 1,035.09B 1,219.10B 1,160.11B
Total equity 817,959.92M 826,581.59M 884,872.94M 947,030.23M 881,020.62M
Operating cash flow 220,798.78M 186,795.73M 196,447.44M 280,610.47M 148,240.22M
 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 389,770.35M 384,257.71M 262,760.70M 375,303.70M 453,565.01M
Gross Profit 13,036.39M 11,667.82M 2,574.52M 17,228.69M 21,419.97M
Operating income 12,864.26M 12,125.00M 2,201.89M 17,495.38M 13,292.96M
Income before tax 12,866.23M 11,178.96M 6,070.93M 13,321.63M 11,868.78M
Net income 9,312.05M 8,320.43M 4,845.24M 11,160.02M 9,824.14M
EBITDA 30,746.35M 28,129.67M 17,965.48M 35,608.03M 29,778.51M
Diluted EPS 0.06 0.06 0.03 0.07 0.07
Dividends Per Share 0.06 0.04 0.02 0.07 0.05
Total Assets 231,922.17M 254,800.52M 269,232.40M 299,947.29M 283,316.31M
Total liabilities 107,166.49M 128,854.24M 133,493.99M 156,369.10M 148,638.75M
Total equity 104,473.54M 106,083.52M 114,120.46M 121,471.75M 112,879.72M
Operating cash flow 28,171.93M 23,840.58M 25,328.46M 36,101.42M 18,931.15M

Valuation Measures

Dec 2022
PER6.12
ROA3.38%
ROE8.41%
Operating margin2.93%
Profit margin2.16%

Management

  • President & Executive Director: Bao Cai Yu
  • Chief Financial Officer: Dong Hua Shou
  • GM-Information & Digital Management Department: Zizong Wang
  • Executive Director & Senior Vice President: Yong Lin Li
  • Director & Senior Vice President: Liang Gong Lv

Shareholders

  • The Vanguard Group, Inc. (5.1%)
  • China State-Owned Assets Supervision & Admn Commission (3.9%)
  • BlackRock Fund Advisors (3.2%)
  • Schroder Investment Management (Hong Kong) Ltd. (2.8%)
  • Fidelity Management & Research Co. LLC (2.0%)
  • Hang Seng Investment Management Ltd. (1.8%)
  • Norges Bank Investment Management (1.7%)
  • Dimensional Fund Advisors LP (1.5%)
  • Charles Schwab Investment Management, Inc. (1.1%)
  • BlackRock Advisors (UK) Ltd. (1.0%)

Contact Details

Related Companies

  • Sinopec Dalian Research Institute of Petroleum & Petrochemic
  • Sinopec Yizheng Chemical Fibre Co. Ltd. /Jiangsu/
  • Shandong Qimin Energy Co. Ltd.
  • SINOPEC Jianghan Salt Chemical Hubei Co., Ltd.
  • Sinopec Ningbo Zhenhai Refining & Chemical Co. Ltd.
  • 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.

Competitors

  • SK Innovation Co., Ltd
  • Dow, Inc.
  • BASF SE
  • Formosa Chemicals & Fibre Corporation
  • Sinochem International Corporation Class A
  • Albemarle Corporation
  • Sumitomo Chemical Co., Ltd.
  • Advansix, Inc.
  • Shenma Industry Co., Ltd. Class A
  • Formosa Petrochemical Corp
  • Trinseo PLC
  • Taiwan Fertilizer Co., Ltd.
  • Nan Ya Plastics Corporation
  • Jiangsu Innovative Ecological New Materials Ltd.
  • Ningbo Changhong Polymer Scientific & Technical Inc. Class A
  • Qingdao Copton Technology Co., Ltd. Class A
  • Qianjiang Yongan Pharmaceutical Co., Ltd. Class A
  • Sasa Polyester Sanayi A.S.
  • HD HYUNDAI CO.,LTD.
  • Renxin New Material Co., Ltd. Class A
  • FUCHS SE Pref Registered Shs
  • Nostrum Oil & Gas Plc
  • Unic Technology Corp.
  • Mechema Chemicals International Corp.
  • Arabian Drilling Co.
  • Birchcliff Energy Ltd.
  • Baijiayun Group Ltd. Class A
  • Hammerhead Energy Inc. Class A
  • KENGIC Intelligent Technology Co., Ltd. Class A
  • Longhua Technology Group (Luoyang) Co,. Ltd. Class A

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Last Updated on 21 Sep, 2023

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