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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 2020 HKDUSD
Revenue2,038.95B262,887.18M
Gross Profit18,371.26M2,368.65M
Operating income16,463.23M2,122.64M
Income before tax46,555.73M6,002.54M
Net income37,189.75M4,794.96M
EBITDA138,168.21M17,814.37M
Diluted EPS0.270.03
Dividends Per Share0.150.02
Total Assets2,081.55B268,453.93M
Total liabilities1,034.79B133,456.22M
Total equity879,145.11M113,381.75M
Operating cash flow195,325.99M25,183.87M
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 1,925.76B 2,381.32B 3,054.84B 3,010.73B 2,038.95B
Gross Profit 98,251.14M 105,822.24M 102,173.36M 91,419.74M 18,371.26M
Operating income 81,252.99M 98,980.97M 100,824.26M 95,001.79M 16,463.23M
Income before tax 82,776.60M 80,914.41M 100,839.66M 87,589.37M 46,555.73M
Net income 54,532.42M 59,088.78M 72,983.67M 65,192.26M 37,189.75M
EBITDA 217,898.36M 241,602.83M 240,975.95M 220,401.61M 138,168.21M
Diluted EPS 0.38 0.42 0.52 0.47 0.27
Dividends Per Share 0.28 0.61 0.47 0.33 0.15
Total Assets 1,671.91B 1,915.31B 1,815.79B 1,985.35B 2,081.55B
Total liabilities 744,550.07M 891,467.50M 839,043.99M 1,004.00B 1,034.79B
Total equity 793,214.35M 871,667.36M 817,959.92M 826,581.59M 879,145.11M
Operating cash flow 249,965.61M 227,821.14M 220,798.78M 186,795.73M 195,325.99M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 248,087.51M 305,580.08M 389,770.35M 384,257.71M 262,887.18M
Gross Profit 12,657.22M 13,579.45M 13,036.39M 11,667.82M 2,368.65M
Operating income 10,467.43M 12,701.56M 12,864.26M 12,125.00M 2,122.64M
Income before tax 10,663.71M 10,383.20M 12,866.23M 11,178.96M 6,002.54M
Net income 7,025.15M 7,582.46M 9,312.05M 8,320.43M 4,794.96M
EBITDA 28,070.79M 31,003.27M 30,746.35M 28,129.67M 17,814.37M
Diluted EPS 0.04 0.05 0.06 0.06 0.03
Dividends Per Share 0.03 0.07 0.06 0.04 0.02
Total Assets 215,642.70M 245,009.82M 231,922.17M 254,800.52M 268,453.93M
Total liabilities 96,031.94M 114,037.77M 107,166.49M 128,854.24M 133,456.22M
Total equity 102,308.65M 111,504.91M 104,473.54M 106,083.52M 113,381.75M
Operating cash flow 32,201.86M 29,234.76M 28,171.93M 23,840.58M 25,183.87M

Valuation Measures

Dec 2020
PER10.76
ROA1.82%
ROE4.36%
Operating margin0.80%
Profit margin1.82%

Key executives

  • Chairman & President: Yong Sheng Ma
  • Chief Financial Officer: Dong Hua Shou
  • Senior Vice President: Ge Chen
  • Senior Vice President & Executive Director: Yi Qun Ling
  • Executive Director & Senior Vice President: Bao Cai Yu

Shareholders

  • GIC Pte Ltd. (Investment Management) (6.4%)
  • The Vanguard Group, Inc. (4.1%)
  • Schroder Investment Management (Hong Kong) Ltd. (3.3%)
  • Fidelity Management & Research Co. LLC (2.9%)
  • China State-Owned Assets Supervision & Admn Commission (2.8%)
  • BlackRock Fund Advisors (2.8%)
  • Schroder Investment Management (Singapore) Ltd. (2.1%)
  • Norges Bank Investment Management (2.1%)
  • Dimensional Fund Advisors LP (1.3%)
  • Charles Schwab Investment Management, Inc. (1.1%)

Contact Details

Related Companies

  • 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.
  • Sinopec Shaanxi oil products Co.
  • Sinopec Chongqing Petroleum Co.
  • SINOPEC Liaoning Oil Products Co.
  • SINOPEC Guizhou Oil Products Co.

Competitors

  • BASF SE
  • SK Innovation Co., Ltd
  • Dow, Inc.
  • Petroleo Brasileiro SA Pfd
  • Sinochem International Corporation Class A
  • Sumitomo Chemical Co., Ltd.
  • Honeywell International Inc.
  • Advansix, Inc.
  • Formosa Chemicals & Fibre Corporation
  • Albemarle Corporation
  • CNOOC Limited
  • W R Grace & Co
  • Zhejiang Renzhi Co., Ltd. Class A
  • Taiwan Cement Corp.
  • Taiwan Fertilizer Co., Ltd.
  • Ningbo Changhong Polymer Scientific & Technical Inc. Class A
  • Qingdao Copton Technology Co., Ltd. Class A
  • Enauta Participacoes S.A.
  • Fuchs Petrolub SE Pref
  • Nostrum Oil & Gas Plc
  • Valvoline, Inc.
  • Zig Sheng Ind. Co., Ltd
  • Mechema Chemicals International Corp.
  • Birchcliff Energy Ltd.
  • Central Petroleum Limited
  • China Gas Industry Investment Holdings Co.Ltd.
  • China Petroleum Engineering Corp Class A
  • Fuwei Films (Holdings) Co., Ltd.
  • Longhua Technology Group (Luoyang) Co,. Ltd. Class A
  • Vista Oil & Gas SA de CV Class A
Last Updated on 15 Oct, 2021

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