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Energy Minerals

China Petroleum & Chemical Corp.

  • 7.63 HKD
  • +0.13
  • +1.73%
  • China
    Apr 20, 2018
  • Ticker
    HKG(386)
  • Prev. close
    7.50
  • Market cap (HKD)
    1,005.59B
  • Market cap (USD)
    128,165M
  • Shares
    121,071M

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, production, and transportation of petroleum products. It operates through the following business segments: Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others. The Exploration and Production segment explores and develops oil fields and produces crude oil and natural gas. The Refining segment processes and purifies crude oil, and manufactures and sells petroleum products. The Marketing and Distribution segment owns and operates oil depots and service stations, and distributes refined products at wholesale or retail. The Chemicals segment manufactures and sells petrochemical, derivative petrochemical, and inorganic chemical products. The Corporate and Others segment includes trading activities, and research and development of the company. The company was founded on February 25, 2000 and is headquartered in Beijing, China.

Financial Highlights

Dec 2017 HKDUSD
Revenue2,450.19B314,417.17M
Gross Profit255,884.97M32,836.00M
Operating income99,623.24M12,783.98M
Income before tax80,771.43M10,364.85M
Net income58,944.64M7,563.97M
EBITDA234,316.48M30,068.26M
Diluted EPS0.480.06
Dividends Per Share0.610.07
Total Assets1,920.52B245,676.13M
Total liabilities895,259.71M114,522.87M
Total equity873,016.66M111,677.51M
Operating cash flow229,972.80M29,510.86M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 3,393.56B 3,315.86B 2,200.56B 1,985.03B 2,450.19B
Gross Profit 276,503.01M 243,799.81M 220,072.68M 227,430.32M 255,884.97M
Operating income 125,940.92M 92,768.72M 68,680.20M 82,130.47M 99,623.24M
Income before tax 119,387.55M 79,099.83M 58,875.26M 82,456.46M 80,771.43M
Net income 84,760.96M 59,692.05M 39,817.98M 54,233.31M 58,944.64M
EBITDA 236,645.33M 214,458.46M 188,995.14M 210,051.26M 234,316.48M
Diluted EPS 0.68 0.51 0.32 0.44 0.48
Dividends Per Share 0.30 0.25 0.18 0.28 0.61
Total Assets 1,771.21B 1,814.17B 1,738.34B 1,680.19B 1,920.52B
Total liabilities 972,956.72M 1,005.32B 795,996.83M 751,394.53M 895,259.71M
Total equity 730,491.13M 743,089.37M 808,645.60M 794,595.51M 873,016.66M
Operating cash flow 183,032.40M 189,608.79M 208,629.68M 255,382.40M 229,972.80M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 437,504.55M 427,594.93M 283,849.18M 255,722.12M 314,417.17M
Gross Profit 35,647.25M 31,439.04M 28,387.05M 29,298.75M 32,836.00M
Operating income 16,236.52M 11,962.93M 8,859.02M 10,580.47M 12,783.98M
Income before tax 15,391.65M 10,200.26M 7,594.28M 10,622.46M 10,364.85M
Net income 10,927.53M 7,697.55M 5,136.09M 6,986.61M 7,563.97M
EBITDA 30,508.73M 27,655.35M 24,378.37M 27,059.89M 30,068.26M
Diluted EPS 0.08 0.06 0.04 0.05 0.06
Dividends Per Share 0.03 0.03 0.02 0.03 0.07
Total Assets 228,433.91M 233,940.69M 224,298.52M 216,711.12M 245,676.13M
Total liabilities 125,482.09M 129,637.81M 102,707.27M 96,914.74M 114,522.87M
Total equity 94,211.34M 95,822.53M 104,339.34M 102,486.79M 111,677.51M
Operating cash flow 23,596.86M 24,450.87M 26,911.02M 32,899.68M 29,510.86M

Valuation Measures

Dec 2017
PER11.77
ROA3.27%
ROE7.06%
Operating margin4.06%
Profit margin2.40%

Key executives

  • Chairman & President: Hou Liang Dai
  • Chief Financial Officer: De Hua Wang
  • Senior Vice President: Yi Qun Ling
  • Executive Director & Senior Vice President: Fang Zheng Jiao
  • Executive Director & Senior Vice President: Yong Sheng Ma

Shareholders

  • Schroder Investment Management Ltd. (5.0%)
  • The Vanguard Group, Inc. (4.4%)
  • Hang Seng Investment Management Ltd. (4.4%)
  • BlackRock Fund Advisors (3.3%)
  • China State-Owned Assets Supervision & Admn Commission (2.8%)
  • Schroder Investment Management (Hong Kong) Ltd. (1.9%)
  • FIL Investment Management (Hong Kong) Ltd. (1.6%)
  • State Street Global Advisors Asia Ltd. (1.3%)
  • Thornburg Investment Management, Inc. (1.2%)
  • APG Asset Management NV (1.2%)

Contact Details

Related Companies

  • China Petroleum & Chemical Corp. /Arg Petroleum Assets/
  • Sinopec Shanxi Datong Petrol
  • Sinopec Argentina SA
  • SINOPEC Inner Mongolian Oil Products Co.
  • Sinopec Jiujiang Petrochemical Co., Ltd.
  • Sinopec KTS Development Ltd.
  • SINOPEC Shanghai Offshore Petroleum Co.
  • SINOPEC Tianjin Co.
  • SINOPEC Beijing Oil Products Co.
  • Sinopec Oil & Gas Australia (Puffin) Pty Ltd.
  • Sinopec International Petroleum Services Kenya Ltd.
  • Gaoqiao Petrochemical Co. Ltd.
  • China Petroleum & Chemical Corp. /Guangdong Pete Branch/
  • China Shengli Oilfield Longxi Petroleum Eng Co., Ltd.
  • China Petroleum & Chemical Corp. /East China Branch/
  • China Petroleum & Chemical Sales Co., Ltd.
  • China Petrochemical Refining Sales Co., Ltd.
  • SINOPEC Ningxia Oil Products Co.,
  • Addax Petroleum UK Ltd.
  • Sinopec Great Wall Energy & Chemical (Ningxia) Co., Ltd.
  • Nanjing Chemical Industry Park Co., Ltd.
  • Sinopec Marketing Co., Ltd.
  • Sinopec Sichuan Petroleum Co.
  • Sinopec Shengli Oilfield Construction Engineering Co. Ltd.
  • Addax Petroleum International Ltd.
  • Sinopec Group Nanjing Chemical Industries Co. Ltd.
  • Sinopec Chemical Sales Co., Ltd.
  • Sinopec Group Anhui Petroleum General Co.
  • Shengli Oil Field Dongsheng Precision Petroleum Dev Co., Ltd.
  • Qingdao Petroleum Co.

Competitors

  • Exxon Mobil Corporation
  • PetroChina Company Limited Class H
  • Public Joint-Stock Company Gazprom
  • BASF SE
  • SK Innovation Co., Ltd
  • Thai Oil Public Co. Ltd.
  • Sumitomo Chemical Co., Ltd.
  • Albemarle Corporation
  • UBE Industries, Ltd.
  • Honeywell International Inc.
  • AdvanSix, Inc.
  • CNOOC Limited
  • Yueyang Xingchang Petro-Chemical Co., Ltd. Class A
  • W. R. Grace & Co.
  • Taiwan Prosperity Chemical Corporation
  • Trinseo SA
  • Cefc Anhui International Holding Co Ltd Class A
  • Fuchs Petrolub SE Pref
  • Shanxi Guoxin Energy Corporation Limited. Class B
  • Valvoline Inc.
  • ADES International Holding Ltd.
  • AKSA
  • Birchcliff Energy Ltd.
  • Blackbird Energy Inc.
  • CGG
  • Hubei Guochuang Hi-Tech Material Co ltd Class A
Last Updated on 20 Apr, 2018

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