Asia300

China Petroleum & Chemical Corp.

China

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Nov 21, 2017
Prev close: 5.49
Nov 21, 2017
Market cap:
Market cap(USD):
815,621.71M
104,406.26M
Shares: 121,071.20M

Currency in HKD

Company profile

Market(Ticker): HKG(386)
Sector:
Industry:
Energy Minerals
Integrated Oil
Full time employees: 451,611

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.

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.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 1,985.03B
Gross profit 227,430.32M
Operating income 82,130.47M
Income before tax 82,456.46M
Net income 54,233.31M
EBITDA 210,051.26M
Diluted EPS 0.44
Dividends per share 0.28
Total assets 1,680.19B
Total liabilities 751,394.53M
Total equity 794,595.51M
Operating cash flow 255,382.40M

Currency in HKD

Revenue 255,722.12M
Gross profit 29,298.75M
Operating income 10,580.47M
Income before tax 10,622.46M
Net income 6,986.61M
EBITDA 27,059.89M
Diluted EPS 0.05
Dividends per share 0.03
Total assets 216,711.12M
Total liabilities 96,914.74M
Total equity 102,486.79M
Operating cash flow 32,899.68M

Currency in USD

Valuation measures

Dec 2016

PER 12.29
ROA 3.17%
ROE 6.76%
Operating margin 4.13%
Profit margin 2.73%

Key executive

  • Chairman & President: Hou Liang Dai
  • Chief Financial Officer: De Hua Wang
  • Executive Director & Senior Vice President: Zhi Gang Wang
  • Executive Director & Senior Vice President: Hai Chao Zhang
  • Executive Director & Senior Vice President: Fang Zheng Jiao

Share holders

  • The Vanguard Group, Inc.(4.5%)
  • Hang Seng Investment Management Ltd.(4.4%)
  • Schroder Investment Management Ltd.(4.2%)
  • BlackRock Fund Advisors(3.3%)
  • China State-Owned Assets Supervision & Admn Commission(2.8%)
  • Thornburg Investment Management, Inc.(2.0%)
  • FIL Investment Management (Hong Kong) Ltd.(1.7%)
  • Norges Bank Investment Management(1.6%)
  • Schroder Investment Management (Hong Kong) Ltd.(1.5%)
  • State Street Global Advisors Asia Ltd.(1.3%)

Address

  • Website: http://www.sinopec.com/listco/en/
  • Address: 22 Chaoyangmen North Street, Chaoyang District, Beijing, 100728, China
  • Phone: +86.10.59960028

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