Sinopec Corp. Announces 2006 Third Quarter Results.BEIJING -- China Petroleum & Chemical Corporation ("Sinopec Corp." or "the Company") (HKEX: 386; NYSE NYSE See: New York Stock Exchange : SNP SNP Scottish National Party Noun 1. SNP - (genetics) genetic variation in a DNA sequence that occurs when a single nucleotide in a genome is altered; SNPs are usually considered to be point mutations that have been evolutionarily ; LSE LSE - Language Sensitive Editor : SNP; CH: 600028) today announced its results for the third quarter ending 30 September, 2006. In the third quarter of 2006, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. PRC Accounting Rules and Regulations, the Company's income from principal operations was RMB RMB Right Mouse Button RMB Regional Management Board (USACE) RMB Rolf Maier Bode (musician, band) RMB Ren Min Bi (currency of People's Republic of China) 273.2 billion, representing an increase of 25.48% over the same period of the preceding year. Net profit was RMB 13.1 billion, representing an increase of 55.78% over the same period of last year. According to IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System , the Company's business turnover and other operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. were RMB 280.8 billion, representing an increase of 25.27% over the same period of the preceding year. Profit attributable to shareholders was RMB 13 billion, representing an increase of 51.36% over the same period of the preceding year. Commenting on the encouraging results, Sinopec Chairman Mr. Chen Tong Chen Tong a character featured within the famed ancient Chinese novel Investiture of the Gods. Chen Tong is the commander of Highwater Pass and has remained so for a few years. Hai said, "In the first three quarters of 2006, China's economy continued to grow at a relatively rapid pace and domestic demand for both petroleum and petrochemical products maintained a steady rate of growth. Crude Oil prices in the world market dropped remarkably after reaching a record high in July. Despite of the fluctuation, we were able to steady some of the margin pressures that have faced in our refining segment. Overall, we recorded satisfactory growth in the third quarter. We attempted to expand resources and the market, improve production and operational performance, reinforce competitive forces in the market, and maintain our growth momentum in crude oil and natural gas production, crude oil processing. Additionally, we also concentrated on increasing the sales volume of oil products and expanding the output of ethylene ethylene (ĕth`əlēn') or ethene (ĕth`ēn), H2C=CH2, a gaseous unsaturated hydrocarbon. It is the simplest alkene. and synthetic resins. " Operating Highlights Financial Highlights in Accordance with PRC Accounting Rules and Regulations [TABLE OMITTED] [TABLE OMITTED] Income statements for the three-month period ended 30 September (July to September)
[TABLE OMITTED]
Note: 1. The "Company" means China Petroleum & Chemical Corporation.
The "Group" means China Petroleum & Chemical Corporation
and its subsidiaries on a consolidated basis.
2. This item represents the written back of unrecognised
investment losses exceeding the investment costs of
long-term investments.
Income statements for the nine-month period ended 30 September (January to September)
[TABLE OMITTED]
Note: 1. The "Company" means China Petroleum & Chemical Corporation.
The "Group" means China Petroleum & Chemical Corporation and
its subsidiaries on a consolidated basis.
2. This item represents the written back of unrecognised
investment losses exceeding the investment costs of
long-term investments.
Financial Highlights (IFRS) Principal accounting data and financial indicators prepared in accordance with IFRS [TABLE OMITTED] Consolidated income statements consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. prepared in accordance with IFRS [TABLE OMITTED] Operating Profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. by Segment The following table sets out the segment-based information compiled in accordance with the PRC Accounting Rules and Regulations: [TABLE OMITTED] Note: Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. = profit from principal operations / income from principal operations The following table sets out the segment-based information compiled in accordance with the IFRS: [TABLE OMITTED] Market Environment and Business Review In the first three quarters of 2006, China's economy continued to grow at a relatively rapid pace, with a GDP GDP (guanosine diphosphate): see guanine. growth rate of 10.7%, while the domestic demand for both petroleum and petrochemical products maintained rational growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. . Crude Oil prices in the world market dropped remarkably after reaching a new record high over the summer. The Company has taken advantage of its integrated operations and attempted to expand resources, improve production and operational performance, reinforce competitive forces in the market, and maintain growth momentum in the production of crude oil and natural gas, crude oil processing volume, oil product sales volume, as well as ethylene and synthetic resin output. Business Review Exploration & Production: The Company carefully implemented its resource strategy, with a combined focus on both crude oil and natural gas. Additionally, Sinopec accelerated its efforts to build production capacities and realize stable oil and natural gas production. Production of crude oil and natural gas grew by 2.84% and 18.08% respectively on a year-on-year basis. Lifting cost was RMB 470.35 per tonne. Moreover, the Company has proactively proceeded with its development activities in Puguang Gas Field. [TABLE OMITTED] Refining: The Company closely tracked the international crude oil market and adhered to its multi-sourcing tactics for crude oil resources, and lowered costs in crude oil purchasing. Additionally, the Company adjusted the product mix and strived to meet market demand, as well. As a consequence, the processing volume of crude oil and the output of oil products grew by 4.45% and 2.93% on a year-on-year basis, respectively; while the yield of light oil and the commercialization ratio have both increased. Cash operating cost was RMB 119 per tonne. [TABLE OMITTED] Marketing and distribution: The Company actively deployed resources and managed to steadily increase the sales volume of oil products, as well as improve its marketing structure further. At the same time, the Company implemented a modern logistics system, and now organizes the dispatching and transportation of oil products. In the initial three quarters of 2006, the sales volume and retail volume of oil products, both at home, have grown by 7.17% and 17.52% on a year-on-year basis, respectively. [TABLE OMITTED] Note: Throughput per petrol station data was an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. average. Chemicals: Sinopec has continually worked towards having chemical facilities conduct production on a safe, stable and full-load basis. During the quarter, the Company increased the output of major products, optimized the product mix, and steadily proceeded to concentrate on sales of products. During the first three quarters of 2006, the production of ethylene and synthetic resins increased by 17.80% and 13.38% on a year-on-year basis, respectively. [TABLE OMITTED] Note: Operational data of 2005, 2006 includes the 100% production of YPC-BASF and Shanghai Secco. Capital Expenditure In the first three quarters of 2006, Sinopec's capital expenditures totaled RMB 44.639 billion, of which RMB 18.081 billion was spent in the Exploration & Production segment. , The Company achieved an number of significant results in terms of oil and natural gas exploration, by means of intensive and carpet-to-carpet prospecting and targeting of key areas in newly found reserve zones. During the quarter, the Company increased crude oil production capacity by 4.13 million tons per year and increased natural gas production capacity by 1.287 billion cubic meters Noun 1. cubic meter - a metric unit of volume or capacity equal to 1000 liters cubic metre, kiloliter, kilolitre metric capacity unit - a capacity unit defined in metric terms per year; RMB 7.098 billion was spent in the Refining Segment. Within in this segment, the Company built and implemented the "Yizheng~Changling Crude Oil Pipeline" project, and proceeded smoothly on the oil refining projects located in Guangzhou, Yanshan and Qingdao respectively. Additionally, Sinopec initiated the construction for the Crude Oil Wharf at Weizhou Island of Beihai City; RMB 9.328 billion was spent in the Chemical Segment. As a part of this, the Company finished the upgrading PX project in the Yangtze Petrochemical Company, and introduced the second round of ethylene expansion in Maoming, excluding the LDPE LDPE abbr. low-density polyethylene project that has been put into service. The projects, such as "Upgrading PTA PTA or parent-teacher association: see parent education. Project in Yangtze Petrochemical Co., Ltd." "Integrated Project in Fujian", " Integrated Refining & Chemical Project in Tianjin" and "Coal to Liquid" projects are progressing as planned. The Company also spent RMB 8.51 billion on the Marketing & Distribution Segment, which has finalized See finalization. preliminary steps in building and acquiring petrol stations in strategic areas such as along the highway, and increased the total number of petrol stations by 542, as well as consummating the marketing network further; the remaining RMB 1.622 billion was spent on the Corporate and Others segments. Capital expenditure adjustments The Board of Directors approved the capital expenditure adjustments plan from RMB70 billion to RMB80.391 billion for the year 2006. The increase is RMB10.391 billion. Of this, the increase in the Exploration and Production segment was RMB1.59 billion, the increase of Refining segment was RMB6.259 billion, the increase of Chemicals segment was RMB3.013 billion, while the decrease of scientific research, information and others is RMB0.472 billion. Future Plan 'Given the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. fluctuation in the petrochemical sector, an important mission for our Board is to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the opportunities presented by the steady growth in domestic demand for energy and chemical products and successfully address numerous challenges such as market fluctuation and intensified competition, in order to further improve the overall competitiveness of Sinopec in the global arena. The Board will continue the policy of "reform, adjustment, innovation and development", with the ultimate goal of achieving the target of 2006 and sustaining growth.' Concluded Chairman Chen. Notice: Sinopec Corp. will be hosting a teleconference to discuss the Company's 3Q2006 results on Tuesday, October 31, 2006, at 9:30 a.m. Beijing time (2:30 a.m. London time and 8:30 p.m., Monday October 30, 2005, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of time) at (852) 3006 8101; access code: Sinopec. A 24-hour replay will be available at (852) 3012 8000; access code: 428557. The teleconference will also be archived on www.sinopec.com. About Sinopec Corp. Sinopec Corp. is a Chinese company listed in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , New York, London and Shanghai. The Company is an integrated energy and chemical company with upstream, midstream mid·stream n. 1. The middle part of a stream. 2. The part of a course that is neither at the beginning nor at the end: the midstream of life. Noun 1. and downstream operations. The principal operations of Sinopec Corp. and its subsidiaries include: exploring, developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products; producing, trading, transporting, distributing and marketing refined oil products; and producing and distributing chemical products. Based on 2005 turnover, Sinopec Corp. is one of the largest listed companies listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → in China. The Company is one of the largest crude oil and petrochemical companies in China and Asia. It is also one of the largest gasoline, diesel and jet fuel and other major chemical products producers and distributors in China and Asia. For additional information about Sinopec Corp., please visit the Company's website at www.sinopec.com Disclaimer This press release includes "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ". 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, reserve volume, other 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 the level of demand for telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. ; competitive forces in more liberalized markets; the effects of tariff reduction initiatives; changes in the regulatory policies and other risks and factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements. |
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