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China Petroleum & Chemical Corporation 2008 Annual Results Announcement PowerPoint Presentation
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China Petroleum & Chemical Corporation 2008 Annual Results Announcement

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China Petroleum & Chemical Corporation 2008 Annual Results Announcement

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China Petroleum & Chemical Corporation 2008 Annual Results Announcement

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  1. China Petroleum & Chemical Corporation2008 Annual Results Announcement March 30, 2009 Hong Kong

  2. Disclaimer This presentation and the presentation materials distributed herein include forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, exploration and development outcomes, estimates of proven reserves, market shares, competition, environmental risks, changes in legal, financial and regulatory frameworks, international economic and financial market conditions, political risks, project delay, project approval, cost estimates and other risks and factors beyond our control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

  3. Agenda • 2008 Overview • 2008 Operational Results • 2009 Operational Plan

  4. 2008 Overview

  5. Review of Market Environment • Chinese GDP increased by 9% • Crude oil price surged to historical high and then declined sharply • Domestic refined oil product prices remained tightly controlled and refining industry suffered severe loss • Domestic refined oil product market changed drastically and domestic consumption of refined oil products grew by 10.2% • Demand for chemical products declined, and domestic consumption of ethylene-equivalent dropped by 0.3%

  6. Operational Summary Note: *Includes 100% production from BASF-YPC and Shanghai-Secco

  7. Financial Performance

  8. Financial Position

  9. Dividend Maintained a relatively stable dividend payout level RMB 8

  10. Capital Expenditure 2008 Capex: RMB107.3 billion RMB billion • E&P • Expanded key production facilities and increased reserve utilization • Sichuan-Eastern China Gas Project • Refining • Qingdao Refinery Project commenced production • Refining upgrading for processing lower quality crude and producing higher quality products • Caofeidian Crude Oil Jetty Project put into operation • Marketing and Distribution • Upgraded the existing service stations • Added 720 new service stations over the year • Chemicals • Major ethylene projects progressed smoothly • Some chemical products upgrading projects commenced production

  11. Cost Saving 2008 Cost Saving: RMB3.96 billion RMB million 52%

  12. Technological Innovation • Driving corporate development through technological innovation • E&P: developed technological system such as Puguang gas field development • Refining: commercialized clean fuel technologies such as S-Zorb and diesel desulfurization • Took lead in producing Guo IV spec fuel for cities hosting 2008 Beijing Olympic Games • Strengthen R&D in alternative energy • Developed a series of new products to meet the market needs Patents

  13. 2008 Operational Results

  14. E&P-Operational Summary

  15. E&P-Segment Performance Realized prices of Crude Oil and Natural Gas EBIT of E&P Segment RMB million

  16. Refining-Operational Summary

  17. Refining-Segment Performance Refining Margin/ Cash Operating Cost EBIT of Refining Segment RMB million

  18. Marketing-Operational Summary

  19. Marketing-Segment Performance RON #90 Gasoline Guidance Price EBIT of Marketing Segment RMB/ tonne RMB million 0# Diesel Guidance Price RMB/ tonne Note: The State has adopted maximum retail price since December 2008

  20. Chemicals-Operational Summary Note: The above data includes 100% production from BASF-YPC and Shanghai-Secco

  21. Chemicals-Segment Performance Chemicals Price Spread EBIT of Chemicals Segment RMB million USD/tonne

  22. 2009 Operational Plan

  23. Prospect for 2009 • Challenges • Oil price expected to fluctuate at low level • Oil product demand may experience lower growth rate • Challenging situation for chemicals business • Opportunities • New gasoline and diesel pricing policy • Chinese government’s stimulus package • VAT Reform and moderately easy monetary policies Refining Business Expected to Become Profitable Not to scale

  24. 2009 Operation Estimates Note: *Including 100% production from BASF-YPC and Shanghai-Secco 2009-3

  25. Capital Expenditure Plan 2009 Capex Plan: RMB111.8 billion • E&P • Start-up of Sichuan-Eastern China Gas Project • Development of oil in Tahe, Shengli, and gas in Puguang and Ordos • Refining • Refined oil products quality upgrading projects • Improve logistic system incl. pipeline and storage facilities • Marketing and Distribution • Improve marketing networks • Construction and acquisitions of service stations along expressways and in strategic areas • Chemicals • Progress in major ethylene projects • Accelerate construction of logistic facilities for chemical products RMB billion

  26. For Further Information http://www.sinopec.com Investor Relations Beijing: Tel: (8610) 59960028Fax: (8610) 59960386 Email: ir@sinopec.com Hong Kong: Tel: (852) 28242638Fax: (852) 28243669 Email: ir@sinopechk.com New York: Tel: (212) 759 5085 Fax: (212) 759 6882 Email: fangzq@sinopecusa.com Media Relations Tel: (8610) 59960028 Fax: (8610) 59960386 Email: media@sinopec.com