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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 2021 HKDUSD
Revenue2,917.17B375,303.70M
Gross Profit133,915.80M17,228.69M
Operating income135,988.77M17,495.38M
Income before tax103,546.90M13,321.63M
Net income86,745.05M11,160.02M
EBITDA276,775.48M35,608.03M
Diluted EPS0.710.09
Dividends Per Share0.550.07
Total Assets2,338.47B299,947.29M
Total liabilities1,219.10B156,369.10M
Total equity947,030.23M121,471.75M
Operating cash flow280,610.47M36,101.42M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 2,381.32B 3,054.84B 3,010.73B 2,037.97B 2,917.17B
Gross Profit 105,822.24M 102,173.36M 91,419.74M 19,968.03M 133,915.80M
Operating income 98,980.97M 100,824.26M 95,001.79M 17,077.89M 135,988.77M
Income before tax 80,914.41M 100,839.66M 87,589.37M 47,086.12M 103,546.90M
Net income 59,088.78M 72,983.67M 65,192.26M 37,579.67M 86,745.05M
EBITDA 241,602.83M 240,975.95M 220,401.61M 139,340.22M 276,775.48M
Diluted EPS 0.42 0.52 0.47 0.31 0.71
Dividends Per Share 0.61 0.47 0.33 0.15 0.55
Total Assets 1,915.31B 1,815.79B 1,985.35B 2,087.58B 2,338.47B
Total liabilities 891,467.50M 839,043.99M 1,004.00B 1,035.09B 1,219.10B
Total equity 871,667.36M 817,959.92M 826,581.59M 884,872.94M 947,030.23M
Operating cash flow 227,821.14M 220,798.78M 186,795.73M 196,447.44M 280,610.47M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 305,580.08M 389,770.35M 384,257.71M 262,760.70M 375,303.70M
Gross Profit 13,579.45M 13,036.39M 11,667.82M 2,574.52M 17,228.69M
Operating income 12,701.56M 12,864.26M 12,125.00M 2,201.89M 17,495.38M
Income before tax 10,383.20M 12,866.23M 11,178.96M 6,070.93M 13,321.63M
Net income 7,582.46M 9,312.05M 8,320.43M 4,845.24M 11,160.02M
EBITDA 31,003.27M 30,746.35M 28,129.67M 17,965.48M 35,608.03M
Diluted EPS 0.05 0.06 0.06 0.04 0.09
Dividends Per Share 0.07 0.06 0.04 0.02 0.07
Total Assets 245,009.82M 231,922.17M 254,800.52M 269,232.40M 299,947.29M
Total liabilities 114,037.77M 107,166.49M 128,854.24M 133,493.99M 156,369.10M
Total equity 111,504.91M 104,473.54M 106,083.52M 114,120.46M 121,471.75M
Operating cash flow 29,234.76M 28,171.93M 23,840.58M 25,328.46M 36,101.42M

Valuation Measures

Dec 2021
PER4.14
ROA3.91%
ROE9.47%
Operating margin4.66%
Profit margin2.97%

Key executives

  • President & Executive Director: Bao Cai Yu
  • Chief Financial Officer: Dong Hua Shou
  • GM-Information & Digital Management Department: Zizong Wang
  • Senior Vice President & Executive Director: Yi Qun Ling
  • Executive Director & Senior Vice President: Hong Bin Liu

Shareholders

  • GIC Pte Ltd. (Investment Management) (5.6%)
  • The Vanguard Group, Inc. (4.2%)
  • China State-Owned Assets Supervision & Admn Commission (3.3%)
  • Schroder Investment Management (Hong Kong) Ltd. (3.3%)
  • BlackRock Fund Advisors (3.1%)
  • Fidelity Management & Research Co. LLC (2.7%)
  • Schroder Investment Management (Singapore) Ltd. (2.1%)
  • Norges Bank Investment Management (1.4%)
  • Massachusetts Financial Services Co. (1.4%)
  • Dimensional Fund Advisors LP (1.3%)

Contact Details

Related Companies

  • 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.
  • Sinopec Shaanxi oil products Co.

Competitors

  • Dow, Inc.
  • BASF SE
  • SK Innovation Co., Ltd
  • Petroleo Brasileiro SA Pfd
  • Sinochem International Corporation Class A
  • Sumitomo Chemical Co., Ltd.
  • Formosa Chemicals & Fibre Corporation
  • Albemarle Corporation
  • Advansix, Inc.
  • HD HYUNDAI CO.,LTD.
  • Ningxia Baofeng Energy Group Co., Ltd. Class A
  • Trinseo Public Limited Company
  • Shenma Industry Co., Ltd. Class A
  • Formosa Petrochemical Corp
  • Taiwan Fertilizer Co., Ltd.
  • Ningbo Changhong Polymer Scientific & Technical Inc. Class A
  • Qingdao Copton Technology Co., Ltd. Class A
  • Qianjiang Yongan Pharmaceutical Co., Ltd. Class A
  • Enauta Participacoes S.A.
  • Fuchs Petrolub SE Pref
  • Nostrum Oil & Gas Plc
  • Zig Sheng Ind. Co., Ltd
  • Mechema Chemicals International Corp.
  • Valvoline, Inc.
  • 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
Last Updated on 17 Aug, 2022

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