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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 2018 HKDUSD
Revenue3,054.84B389,770.35M
Gross Profit102,173.36M13,036.39M
Operating income100,824.26M12,864.26M
Income before tax100,839.66M12,866.23M
Net income72,983.67M9,312.05M
EBITDA240,975.95M30,746.35M
Diluted EPS0.600.07
Dividends Per Share0.470.06
Total Assets1,815.79B231,922.17M
Total liabilities839,043.99M107,166.49M
Total equity817,959.92M104,473.54M
Operating cash flow220,798.78M28,171.93M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 3,260.14B 2,148.14B 1,925.76B 2,381.32B 3,054.84B
Gross Profit 121,741.33M 102,209.90M 98,251.14M 105,822.24M 102,173.36M
Operating income 90,576.36M 67,713.15M 81,252.99M 98,980.97M 100,824.26M
Income before tax 77,870.25M 59,267.51M 82,776.60M 80,914.41M 100,839.66M
Net income 58,478.83M 40,102.92M 54,532.42M 59,088.78M 72,983.67M
EBITDA 212,266.10M 195,551.09M 217,898.36M 241,602.83M 240,975.95M
Diluted EPS 0.50 0.33 0.45 0.48 0.60
Dividends Per Share 0.25 0.18 0.28 0.61 0.47
Total Assets 1,814.17B 1,727.32B 1,671.91B 1,915.31B 1,815.79B
Total liabilities 1,007.21B 786,648.10M 744,550.07M 891,467.50M 839,043.99M
Total equity 741,286.91M 807,045.11M 793,214.35M 871,667.36M 817,959.92M
Operating cash flow 179,326.60M 201,331.18M 249,965.61M 227,821.14M 220,798.78M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 420,409.73M 277,087.49M 248,087.51M 305,580.08M 389,770.35M
Gross Profit 15,699.07M 13,183.99M 12,657.22M 13,579.45M 13,036.39M
Operating income 11,680.21M 8,734.28M 10,467.43M 12,701.56M 12,864.26M
Income before tax 10,041.70M 7,644.88M 10,663.71M 10,383.20M 12,866.23M
Net income 7,541.09M 5,172.85M 7,025.15M 7,582.46M 9,312.05M
EBITDA 27,372.63M 25,224.02M 28,070.79M 31,003.27M 30,746.35M
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 222,876.04M 215,642.70M 245,009.82M 231,922.17M
Total liabilities 129,882.50M 101,501.00M 96,031.94M 114,037.77M 107,166.49M
Total equity 95,590.10M 104,132.83M 102,308.65M 111,504.91M 104,473.54M
Operating cash flow 23,124.94M 25,969.59M 32,201.86M 29,234.76M 28,171.93M

Valuation Measures

Dec 2018
PER8.13
ROA3.91%
ROE8.63%
Operating margin3.30%
Profit margin2.38%

Key executives

  • President, General Manager, 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

  • GIC Pte Ltd. (Investment Management) (7.8%)
  • Schroder Investment Management Ltd. (5.3%)
  • The Vanguard Group, Inc. (4.6%)
  • BlackRock Fund Advisors (3.7%)
  • China State-Owned Assets Supervision & Admn Commission (2.8%)
  • Fidelity Management & Research Co. (2.7%)
  • FIL Investment Management (Singapore) Ltd. (1.5%)
  • FIL Investment Management (Hong Kong) Ltd. (1.4%)
  • Hang Seng Investment Management Ltd. (1.4%)
  • Schroder Investment Management (Singapore) Ltd. (1.4%)

Contact Details

Related Companies

  • 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.
  • 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.

Competitors

  • PetroChina Company Limited Class H
  • BASF SE
  • Dow, Inc.
  • Petroleo Brasileiro SA Pfd
  • SK Innovation Co., Ltd
  • Formosa Chemicals & Fibre Corporation
  • Sumitomo Chemical Co., Ltd.
  • 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.
  • Vista Oil & Gas SA de CV Class A
  • InterOil Exploration and Production ASA
  • Fuchs Petrolub SE Pref
  • Serica Energy PLC
  • Crescent Point Energy Corp.
  • Tidewater Midstream & Infrastructure Ltd.
  • Valvoline Inc.
  • ADES International Holding Plc
  • Blue Energy Limited
  • Central Petroleum Limited
  • CGG
  • Fuwei Films (Holdings) Co., Ltd.
  • Hubei Guochuang Hi-Tech Material Co ltd Class A
Last Updated on 15 Nov, 2019

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