Sinopec Corp. Reports Results for the Year Ended December 31, 2002 - Moderate YoY Growth Experienced Across the Board.Business Editors BEIJING--(BUSINESS WIRE)--March 30, 2003 -- -- 6.8% year-over-year increase in revenues -- 3.6% increase in 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. -- ROACE ROACE Returns on Average Capital Employed increased to 7.24% China Petroleum & Chemical Corporation ("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 financial results for the twelve months ended December 31, 2002. "In 2002, the Chinese economy continued to grow at an 8% GDP GDP (guanosine diphosphate): see guanine. rate. Demand for major petroleum and petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. products was high. This created a healthy market environment for Sinopec Corp. The Company overcame price slumps in crude oil, refined products and chemicals at the beginning of 2002 and successfully managed significant challenges that were brought on by the country's 1st year in the WTO See World Trade Organization. , which included reduced tariffs This is a list of tariffs and trade legislation:
v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: competition. The Company took full advantage of a recovery in the market that started in March and quickly turned around its operations thereafter. Additionally, the Company further enhanced its position in the market by capitalizing on its major competitive advantage of having fully integrated upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger , 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 From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). operations. This helped the Company achieve satisfactory results in the refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar , marketing and distribution segments while turning a loss into profit in the chemical segment. These factors combined to lead to the successful operating results of 2002," commented President Wang Jiming. Under International Account Standards (IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. ), revenue for 2002 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) 340.04 billion (US$ 41.07 billion), a 6.8% increase from a year ago. Operating profit was RMB 28.30 billion (US$3.42 billion), representing a 3.6% year-over-year increase. Profit attributable to shareholders reached RMB 16.08 billion (US$1.94 billion), a 0.34% increase compared to 2001. ROACE increased to 7.24% from 6.96% in 2001. Earnings per share based on the total number of outstanding shares at the end of 2002 was RMB0.19 (US$0.023). The Board of Sinopec Corp. proposed a dividend of RMB 0.08 (US$0.009) per share for 2002. The year-end dividend Year-end dividend A special dividend declared at the end of a fiscal year that usually represents distribution of higher-than-expected company profits. year-end dividend See final dividend. will be RMB 0.06 (US$0.002), or US$0.72 per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. (ADS), which reflects the difference between the mid-year dividend amount of RMB 0.02 (US$0.002) and the proposed full-year amount.
Operating Highlights
Financial Highlights
(for the year ended 31 December)
2002 2001 2000 2002/2001
RMB RMB RMB yoy (%)
millions millions millions
----------------------------------------------------------------------
Revenue 340,042 318,471 331,576 6.8
----------------------------------------------------------------------
Operating profit 28,277 27,300 35,511 3.58
----------------------------------------------------------------------
Profit / (loss) attributable to
shareholders 16,080 16,025 19,584 0.34
----------------------------------------------------------------------
Basic earnings per share (RMB) 0.19 0.19 0.27 0
----------------------------------------------------------------------
Net profit per share (Based on
total number of shares in issue
at the year end) (RMB) 0.19 0.18 0.23 5.56
----------------------------------------------------------------------
Returns on capital employed (%) 0.28
percentage
7.24 6.96 9.99 point
----------------------------------------------------------------------
Return on net assets (%) -0.44
percentage
10.41 10.85 14.71 point
----------------------------------------------------------------------
Net cash flow from operating
activities per share (RMB) 0.622 0.638 0.348 -2.51
----------------------------------------------------------------------
Net assets 154,485 147,669 133,154 4.62
----------------------------------------------------------------------
Net assets per share (RMB) 1.782 1.703 1.587 4.64
----------------------------------------------------------------------
Adjusted net assets per share
(RMB) 1.768 1.683 1.578 5.05
----------------------------------------------------------------------
Debt/Equity ratio (%) 1.53
percentage
32.74 31.21 34.78 points
----------------------------------------------------------------------
2002 Operating Overview by Segment
(for the year ended December 31)
2002 2001 2000 2002/2001
RMB RMB RMB yoy (%)
billions billions billions
----------------------------------------------------------------------
Exploration and production
----------------------------------------------------------------------
Operating revenues 57.6 60.6 59.9 (5.0)
----------------------------------------------------------------------
Operating expenses (42.8) (37.4) (34.5) 14.4
----------------------------------------------------------------------
Operating profit 14.8 23.2 25.4 (36.2)
----------------------------------------------------------------------
Refining
----------------------------------------------------------------------
Operating revenues 211.9 209.1 233.1 1.3
----------------------------------------------------------------------
Operating expenses (206.0) (207.0) (231.7) (0.5)
----------------------------------------------------------------------
Operating profit 5.9 2.1 1.4 181.0
----------------------------------------------------------------------
Marketing and distribution
----------------------------------------------------------------------
Operating revenues 187.0 183.3 175.6 2.0
----------------------------------------------------------------------
Operating expenses (178.6) (180.9) (169.2) (1.3)
----------------------------------------------------------------------
Operating profit 8.4 2.4 6.4 250.0
----------------------------------------------------------------------
Chemicals
----------------------------------------------------------------------
Operating revenues 69.6 58.9 60.9 18.2
----------------------------------------------------------------------
Operating expenses (69.5) (59.6) (58.5) 16.6
----------------------------------------------------------------------
Operating profit 0.1 (0.7) 2.4 (114.3)
----------------------------------------------------------------------
Corporate and others
----------------------------------------------------------------------
Operating revenues 43.9 23.7 26.0 85.2
----------------------------------------------------------------------
Operating expenses (44.9) (23.4) (26.1) 91.9
----------------------------------------------------------------------
Operating profit -1.0 0.3 0.1 (433.3)
----------------------------------------------------------------------
Exploration & Production In 2002, Sinopec made significant exploration achievements in burial burial, disposal of a corpse in a grave or tomb. The first evidence of deliberate burial was found in European caves of the Paleolithic period. Prehistoric discoveries include both individual and communal burials, the latter indicating that pits or ossuaries were hills, and new and hidden layers in the Shengli oil blocks of East China. These areas are expected to become stable sources of oil supply for the Company in the near future. Important discoveries were made in the Tarim and Jungel Basins of West China. The Company has preliminarily identified five breakthroughs in reserves, including the middle part of the Jungel Basin, the Tahe area of the Tarim Basin, the Tazhong area, the south Kuche area of Tianshan and the slope of the Kongque River. These five reserve locations will be important replacement resources for the last three years of the 10th Five-Year Plan Five-Year Plan, Soviet economic practice of planning to augment agricultural and industrial output by designated quotas for a limited period of usually five years. Period. In production, the Company added 5.54 mm tonnes of crude oil production capacity and 928 mm 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 of natural gas. Crude oil production reached 38 mm tonnes and natural gas production reached 5.06 bcm, representing increases of 0.2% and 9.8% respectively. In 2002, the Platt's Singapore annual average spot price of crude oil for Brent Brent, outer borough (1991 pop. 226,100) of Greater London, SE England. The area is a rail and industrial center. Its manufactures include automobile parts, clocks and watches, and electrical equipment. was US$24.96/ barrel, close to the US$24.89/barrel that was seen in 2001. Domestic pricing of crude oil approximately moves along with that of the international market. However, since there is a one month lag between domestic pricing and the international market, and because the crude oil tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic was eliminated, the average realized price of crude oil in 2002 was $22.42/barrel, representing a decrease of 4.02% over the prior year. The average realized price of natural gas increased by 1.9% to RMB571.69 (US$69.04) per thousand cubic meters.
Summary of the Exploration and Production Segment
2002/2001
2002 2001 2000 yoy (%)
----------------------------------------------------------------------
Crude oil production (mmbbls) 269.80 269.16 247.35 0.2
----------------------------------------------------------------------
Natural gas production (bcf) 178.8 162.8 80.3 9.8
----------------------------------------------------------------------
Newly added recoverable crude oil
reserves (mmbbls) 375 316 318 18.7
----------------------------------------------------------------------
Newly added recoverable gas reserves
(bcf) 20.2 309.0 297.0 -93.5
----------------------------------------------------------------------
Year-end recoverable reserves of crude
oil (mmbbls) 3,320 3,215 2,952 3.3
----------------------------------------------------------------------
Year-end recoverable reserves of
natural gas (bcf) 3,329.4 3,488.0 999.0 -4.5
----------------------------------------------------------------------
Year-end recoverable reserves of oil
and gas (mmboe) 3,875 3,796 3,118 2.1
----------------------------------------------------------------------
Refining In 2002, the Company further optimized its resources by drastically dras·tic adj. 1. Severe or radical in nature; extreme: the drastic measure of amputating the entire leg; drastic social change brought about by the French Revolution. 2. adjusting its product mix and by increasing exports. Crude oil throughput increased and the Company maintained good control over production for refined oil products. The Company increased production of petrochemical light oil and high value-added products, as well as proactively developed the non-refined oil product market and distribution channels. Crude oil throughout increased by 3.54% to 105.01 mm tonnes; refined oil product throughput increased by 2.09% to 62.42 mm tonnes, of which, high-octane number gas production was 6.59 mm tonnes and chemical feedstock feed·stock n. Raw material required for an industrial process. Noun 1. feedstock - the raw material that is required for some industrial process raw material, staple - material suitable for manufacture or use or finishing production was 15.039 mm tonnes, representing an increase of 31.35% and 21.67% respectively. Major technical and economic refining indicators increased significantly. Light oil yield increased 0.9% to 73.22%, while composite commercial yield grew 0.27% to 92.5% compared to 2001. Refining margins were US$3.95/barrel, representing an increase of 10.6% compared to last year.
Operating Summary of the Refining Segment
2002/2001
2002 2001 2000 yoy (%)
----------------------------------------------------------------------
Crude processing volume
(mbbls/day) 2,114.6 2,042.4 2,110.0 3.5
----------------------------------------------------------------------
Of which: Sour crude processing
volume (mbbls/day) 402.8 387.6 276.0 3.9
----------------------------------------------------------------------
Refinery utilization (%) 1.4
percentage
79.3 77.9 81.00 points
----------------------------------------------------------------------
Gasoline, diesel and kerosene
production (million tonnes) 62.42 61.14 62.58 2. 1
----------------------------------------------------------------------
Of which: Gasoline
(million tonnes) 19.62 18.74 20.15 4.7
----------------------------------------------------------------------
Diesel
(million tonnes) 37.74 37.93 37.53 -0.5
----------------------------------------------------------------------
Kerosene
(million tonnes) 5.06 4.47 4.90 13.2
----------------------------------------------------------------------
Diesel to gasoline production -0.1
ratio percentage
1.92 2.02 1.86 point
----------------------------------------------------------------------
Light yield (%) 0.89
percentage
73.22 72.33 71.57 point
----------------------------------------------------------------------
refining yield (%) 0.27
percentage
92.50 92.23 92.25 point
----------------------------------------------------------------------
Marketing and Distribution In 2002, total sales of refined products increased by 3.5% to 70.09 mm tonnes over last year, of which retail sales increased 14% to 34.73 mm tons. The Company's retail market share in its principal markets increased by 3% to 68%. Sale volume of high octane oc·tane n. 1. Any of various isomeric paraffin hydrocarbons with the formula C8H18, found in petroleum and used as a fuel and solvent. 2. An octane number. gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by (93#) amounted to 4.30 mm tonnes, representing a growth of 44.7%. Average throughput per petrol petrol: see gasoline. station increased by 6% to 1,560 tonnes. Distribution volume was 12.63 mm tonnes, representing a year-over-year increase of 8.5%. Domestic retail and distribution volumes accounted for 67.6% of the Company's total sales volume, which represents a 5.5% increase over 2001. As of December 2002, there were 24,000 company owned and operated petrol stations and 4,127 franchised stations. In addition, the Jiangmen-Shashi Pipeline and Zhenhai-Kangqiao Pipeline commenced operations, which further improved the Company's marketing and distribution network. As a result, the Company increased refined product exports by 34.58% over 2001 to 5.02 mm tonnes.
Summary of the Marketing and Distribution Segment
2002/2001
2002 2001 2000 yoy (%)
----------------------------------------------------------------------
Total domestic sales of refined oil
products (thousand tonnes) 70,090 67,740 67,690 3.5
----------------------------------------------------------------------
Of which: Retail volume
(thousand tonnes) 34,730 30,430 23,940 14.1
----------------------------------------------------------------------
Distribution volume Nil
(thousand tonnes) 12,630 11,640 8.5
----------------------------------------------------------------------
Wholesale volume
(thousand tonnes) 22,730 25,670 43,750 -11.5
----------------------------------------------------------------------
Average annual throughput / petrol
station (tonne/station) 1,560 1,473 1,402 5.9
----------------------------------------------------------------------
Total number of petrol stations under
Sinopec Corp. brand 28,127 28,246 25,493 -0.4
----------------------------------------------------------------------
Of which: Number of COCO petrol
stations 24,000 24,062 20,259 -0.3
----------------------------------------------------------------------
Number of franchised petrol
stations 4,127 4,184 5,234 -1.4
----------------------------------------------------------------------
Proportion of retail volume to total 4.7
domestic sales (%) percentage
49.6 44.9 35.4 points
----------------------------------------------------------------------
Year-end capacity of oil storage
(thousand cubic meters) 13,970 15,134 14,640 -7.7
----------------------------------------------------------------------
Chemicals While maintaining full utilization of major petrochemical facilities in 2002, the Company also sped up the refurbishing of its chemical facilities. The Company completed the second round of upgrades to Beijing Yanhua Petrochemical's ethylene ethylene (ĕth`əlēn') or ethene (ĕth`ēn), H2C=CH2, a gaseous unsaturated hydrocarbon. It is the simplest alkene. facilities in 2002, which is work that was completed in addition to the second round of upgrades that were already made to the ethylene facilities of Sinopec Shanghai Petrochemical Shanghai Petrochemical (SEHK: 338),(SSE: B>600688) (Traditional Chinese:上海石化, Simplified Chinese:上海石化), full name Sinopec Shanghai Petrochemical Company Limited Company Limited ("Shanghai Petrochemical") and Sinopec Yangzi Petrochemical Company Limited ("Yangzi Petrochemical") in 2001. In 2002, total ethylene output was 2.7164 mm tonnes, representing an increase of 26.17% over 2001. Major chemicals such as synthetic resin Noun 1. synthetic resin - a resin having a polymeric structure; especially a resin in the raw state; used chiefly in plastics acrylate resin, acrylic resin, acrylic - a glassy thermoplastic; can be cast and molded or used in coatings and adhesives , synthetic fiber Noun 1. synthetic fiber - fiber created from natural materials or by chemical processes man-made fiber fiber, fibre - a slender and greatly elongated substance capable of being spun into yarn acrylic, acrylic fiber - polymerized from acrylonitrile , monomers and polymers for synthetic fiber, synthetic rubber synthetic rubber: see rubber. and urea all recorded relatively high increases in production. The Company has further increased the production volume of high value-added products to expand profit margins. Annual production of performance compound resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. was 1.8469 mm tonnes and 402 thousand tonnes for differential fibers, up 38.66% and 23.3% respectively over 2001. Direct sales of chemical products also increased. Sales of petrochemical products through e-commerce reached RMB16.94 billion (US$2.05 billion), accounting for 24.35% of total chemical sales.
Production of Major Chemicals
(Unit: 10,000 tonnes)
2002/2001
2002 2001 2000 yoy (%)
----------------------------------------------------------------------
Ethylene 271.64 215.3 217.0 26.2
----------------------------------------------------------------------
Synthetic resins 400.48 320.4 318.3 25.0
----------------------------------------------------------------------
Of which: Performance
compound resins 184.69 133.2 128.0 38.7
----------------------------------------------------------------------
Synthetic rubbers 45.77 39.8 31.7 15.0
----------------------------------------------------------------------
Monomers/polymers for synthetic fibers 383.35 359.8 379.5 6.5
----------------------------------------------------------------------
Synthetic fibers 115.30 102.8 106.8 12.2
----------------------------------------------------------------------
Of which: Differential fibers 40.2 32.6 28.3 23.3
----------------------------------------------------------------------
Urea 266.63 234.2 292.3 13.8
----------------------------------------------------------------------
Cost Savings In 2002, the Company achieved its targeted cost reduction of RMB 2.52 billion (US$304 mm). Please see the table below for a detailed breakdown.
2002 Cost Savings Breakdown by Segment
Segment Cost Savings Cash Operating Cost
(2002/2001)
----------------------------------------------------------------------
E&P RMB 700 mm US$6.12/US$6.15/barrel
(US$85 mm)
----------------------------------------------------------------------
Refining RMB 700 mm US$2.03/US$2.07/barrel.
(US$85 mm)
----------------------------------------------------------------------
Marketing & Distribution RMB 620 mm Maintained under
(US$75 mm) RMB166/ton
(US$20.05/ton)
----------------------------------------------------------------------
Chemicals RMB 500 mm US$150/US$160/ton for
(US$60 mm) ethylene
----------------------------------------------------------------------
Additionally, the Company reduced head-count by 25,000. Capital Expenditures In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Company's investment policy of "controlling total volume, centralizing cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. the decision making process, adjusting capital structure, optimizing projects and increasing returns," the actual CAPEX decreased significantly compared with last year. As such, further improvements were made in the Company's investment structure. 2002 CAPEX was RMB 41.6 billion (US$5.02 billion), representing a decrease of 29.3%. This effectively lays a foundation for solid future growth. A detailed breakdown by segment follows:
E&P : RMB 20.23 billion (US$2.44 billion) to increase
crude oil reserves and natural gas production.
Refining : RMB 6.53 billion (US$789 mm) to increase
production capacity of clean fuel and processing
capability of high-sour crude oil.
Chemicals : RMB 7.32 billion (US$884 mm) to increase
production capacity of chemical products.
Marketing & Distribution : RMB 6.98 billion (US$843 mm) to
increase the sales network of refined
products by constructing refined oil transport
facilities, as well as building and upgrading
retail stations.
Others : RMB 0.55 billion (US$66 mm) to improve
information systems.
Progress on Major Joint Venture (JV) Projects In 2002, two ethylene JV projects, one with BASF BASF Bar Association of San Francisco (since 1872; San Francisco, California) BASF Badische Anilin und Soda Fabrik (German chemical products company) BASF Builders Association of South Florida in Nanjing and one with BP in Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. , commenced construction and are expected to start production in 2004 and 2005, respectively. The JV coal gasification Coal gasification The conversion of coal or coal char to gaseous products by reaction with steam, oxygen, air, hydrogen, carbon dioxide, or a mixture of these. project with Shell in the Hunan Province has started construction and is expected to commence operation in 2005. The feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. for the Fujian Petrochemical Integration Project with ExxonMobil and Aramco has been approved by the Chinese Government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
Reform and Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). In 2002, the Company further improved its management system, strengthened business cooperation, as well as optimized resources. The Company also restructured its capital base through an asset swap Asset Swap Similar in structure to a plain vanilla swap, the key difference is the underlying of the swap contract. Rather than regular fixed and floating loan interest rates being swapped, fixed and floating investments are being exchanged. with the parent company, which helped increase profitability. Additionally, the Company restructured its subsidiary Sinopec Hubei Xinghua, which used to be an A-share listed company listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → . Corporate Governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. In 2002, the Company proposed changes to its corporate governance policy in a comprehensive and systematic manner. The changes are in accordance with the new market environment, listing rules- including the "Principles for the Corporate Governance of Listed Companies" jointly issued by the China Securities Regulatory Commission The China Securities Regulatory Commission (CSRC) (Simplified Chinese: 中国证券监督管理委员会; Pinyin: (CSRC CSRC Computer Security Resource Center (NIST) CSRC China Securities Regulatory Commission CSRC Contributing Source (telephony, real-time control protocol) CSRC Computer Security Resource Clearinghouse ) and the State Economic and Trade Commission (SETC SETC Southeastern Equestrian Trails Conference SETC State Employees Trades Council (Blue Jay, California) SETC State Express Transport Corporation (Tamil Nadu, India) ), and the newly announced Sarbanes-Oxley Act See SOX. by the US government. It enhanced the decision making power of the Board of Directors and fully utilized the "Three Committees" function under the Board of Directors and as a result, enhanced the Company's corporate governance standards. Health, Safety and Environment (HSE HSE House HSE Health and Safety Executive HSE Helsinki School of Economics HSE Hamilton Southeastern (High School) HSE Health, Safety & Environment HSE Higher School of Economics (Moscow, Russia) ) Sinopec Corp. has always been striving to balance HSE and economic development. The goal has been to establish safe production mechanisms with long-term benefits. -- Steady promotion of HSE management: By the end of 2002, 25 branch companies or subsidiaries of Sinopec Corp. had already established fairly complete HSE management systems and put them into operation. -- Implementation of safety pre-appraisals for new projects: 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. this policy, the first emphasis is prevention. -- Active promotion of clean production, water conservation and pollution reduction: The Company's industrial water consumption was reduced by 6.6% as compared to 2001. -- Development of a number of technologies that improve the quality of petroleum products: The Company began completely implementing the new national standard for light diesel on July 1, 2002 and reduced the sulfur sulfur or sulphur (sŭl`fər), nonmetallic chemical element; symbol S; at. no. 16; at. wt. 32.06; m.p. 112.8°C; (rhombic), 119.0°C; (monoclinic), about 120°C; (amorphous); b.p. 444.674°C;; sp. gr. at 20°C;, 2. content in its light diesel products from 1.0%(m/m) under the old standard, to 0.2%(m/m) under the new one. Sinopec Corp. will completely implement the new national standard for automotive gasoline starting July 1, 2003 Forward Looking Looking forward to 2003, President Wang Jiming commented: "Faced with new challenges, the Company will take advantage of opportunities presented in the market while attempting to achieve the highest efficiency possible. The Company will work out a mid and long-term strategy that seeks to continuously increase competitiveness and maximize profits and shareholder returns." Market Outlook Opportunities: -- It is expected that China will maintain its growth at over a 7% GDP rate. Based on this growth, demand for domestic refined products will increase at a rate higher than 4% and more than 10% for chemicals represented by ethylene. This will create a healthy environment for growth in the petroleum and petrochemicals industry. -- Domestic refined products will experience an improved market environment after the Chinese Government effectively puts the refined products market in order. Better cooperation between Sinopec Corp. and other refined product distributors should further improve the market environment. -- Newly upgraded and added capacities, applications of advanced scientific achievements and further internal reforms will provide strong support for further cost reduction and increased efficiency. Challenges -- A dramatic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the global economy- The Iraq War Iraq War: see under Persian Gulf Wars. Iraq War or Second Persian Gulf War Brief conflict in 2003 between Iraq and a combined force of troops largely from the U.S. and Great Britain; and a subsequent U.S. may cause extreme price volatility for crude oil, refined products, and chemicals. -- China's second year in the WTO- Further reduced tariffs, a more open market, an increase in refined product imports by non state-owned enterprises and a continued drop in import tariffs for chemicals will further intensify in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: competition. Operations: In 2003, the Company will adopt a flexible operating strategy to reach the following objectives: Exploration and Production: The Company will pursue a strategy of "stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. production at the existing fields in eastern China, developing the potential fields in western China, searching for potential reserves in southern China, well balancing oil and natural gas, relying on science and technology and reducing costs to increase efficiency". It will accelerate explorations in new areas in the West, increase replacement resources and oil and gas production, develop potential in old areas, and maintain stable and high quality production of oil and gas to achieve a balance between reserves and production. The target for newly added annual capacity for crude oil production is 5.58 mm tonnes and 674 mm cubic meters for natural gas. The target for annual crude oil production is 38.10mm tonnes and natural gas of 5.3 bcm. Refining: The target for annual production includes 110.92 mm tonnes of crude oil, 60.96 mm tonnes of refined products and 17.15 mm tonnes of light oil. The Company will try to continuously expand the non-refined oil market, increase high value-added products, and improve major refining technical and economic indicators Economic indicators The key statistics of the economy that reveal the direction the economy is heading in; for example, the unemployment rate and the inflation rate. . The target for light oil and composite commercial yield is 73.5% and 92.55% respectively. Marketing and distribution: Sinopec Corp. will further improve its distribution network, adjust the sales mix sales mix See product mix. , increase retail and franchised distribution volume, as well as increase its retail market share. The Company will continue to cooperate with other refined product distributors to improve the market environment and keep the domestic refined product market in good order. The Company will also further increase exports. The target for annual sales volume for refined products is 73 mm tonnes, 37.5 mm tonnes for retail volume, 14 mm tonnes for distribution and 5.5 mm tonnes for refined product exports. Chemicals: Production targets for chemicals are as follows: 3.05 mm tonnes for ethylene, 4.46 mm tonnes for synthetic resin, 470 thousand tonnes of synthetic rubber, 1.24 mm tonnes for synthetic fiber, and 4.21 mm tonnes for monomer monomer (mŏn`əmər): see polymer. monomer Molecule of any of a class of mostly organic compounds that can react with other molecules of the same or other compounds to form very large molecules (polymers). and polymer synthetic fibers. The Company aims to further increase production of performance compound resins and differential fibers. It will also try to increase sales volume, improve services and enhance direct sales for major chemicals. Cost Reduction The target for total cost reduction is RMB2.5 billion (US$302 mm), of which, RMB 1 billion (US$121 mm) will come from the E&P segment, RMB 600 million (US$72 mm) from the refining segment, RMB400 million (US$48 mm) from the chemical segment, and RMB 500 million (US$60 mm) from the marketing and distribution segment. The Company is committed to delivering on its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. promise of reaching a total cost reduction of US$1.6 billion during the 2001-2003 period. Prudent Investment The Company's target for annual CAPEX is RMB 37.6 billion (US$4.54 billion), of which RMB 18.0 billion (US$2.17 billion) will be used for the E&P segment, RMB 6.34 billion (US$766 mm) for the refining segment, RMB 5.0 billion (US$604 mm) for the marketing and distribution segment, RMB 7.64 billion (US$923 mm) for the chemical segment, and RMB 620 million (US$75 mm) will be used for the implementation of the ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. system and other such similar technological enhancements. Information System Construction The Company will continue to -- implement its ERP system -- further improve the two management information systems for financial and refined oil products sales management Sales Management Role and Goal Importance of sales management is critical for any commercial organization. Expanding business in not possible without increasing sales volumes, and effective sales management goal is to organize sales team work in such a manner that ensures a and the two e-commerce networks for product marketing -- apply a computer-aided decision-making system to assist in the optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. of crude oil resources and supply chain management -- build and implement a refined oil product distribution system and -- promote the application of an IC filling card for petrol stations. Notice: Sinopec Corp. will announce its 2002 annual results at www.sinopec.com and in major newspapers on Monday, March 31, 2003, Hong Kong Time Hong Kong Time (abbreviation: HKT ; Traditional Chinese: 香港時間) is the time in Hong Kong. The time is UTC+8 all year round. . A live webcast to discuss Sinopec Corp's results will take place on Monday, March 31, 2003, at 12:30p.m. Hong Kong Time (4:30 a.m. GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 and 11:30 p.m. U.S. EST EST electroshock therapy. EST abbr. electroshock therapy .) About Sinopec Corp.: Sinopec Corp. is the first Chinese company that has been 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 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 , London and Shanghai. The Company is an integrated energy and chemical company with upstream, midstream 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 2002 turnover, Sinopec Corp. is the largest listed company 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 the Company, please visit the Company's website at www.sinopec.com Disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the : This presentation and the presentation materials distributed herewith here·with adv. 1. Along with this. 2. By this means; hereby. herewith Adverb Formal together with this: include 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, estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or development may differ materially from those indicated by these forward-looking statements as a results of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, exploration and development outcomes, estimates of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. , market shares, competition, environmental risks, changes in legal, financial and regulatory frameworks, international economic and financial market conditions, political risks, project delay, product 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion