China Petroleum & Chemical Corporation (Sinopec Corp.) has announced its unaudited results for the first quarter of the year which ended on 31 March 2009. In Q1-09, the company achieved profits in all the segments. Under the government's new pricing mechanism for refined oil products and tax reform, the company has fully utilized its advantages in production scale, cost control, structurally integrated operations and management, and turned the refining segment into a major profit generator. In addition, the chemical segment has greatly improved its profitability, due to a month by month rise in domestic demand for oil and refined products on the back of the government's economic stimulus plan.
In accordance with the PRC Accounting Standards for Business Enterprises (ASBE), the Company's operating income decreased by 31.2% yoy to RMB 228,585 mln in the Q1-09. Net profit attributed to equity shareholders of the parent company increased by 84.7% yoy to RMB 11,190 mln. Earnings per share were RMB 0.129. In accordance with International Financial Reporting Standards (IFRS), the Company's operating income and other income decreased by 31.2% yoy to RMB 228,585. Net profit for the period attributed to equity shareholders of the Company increased by 85.1% year on year to RMB 11,219 mln.
Exploration & Production (E&P): Due to the significant drop in price of crude oil, the operating profit of the E&P segment was RMB 2,756 mln, a decrease of 76.1% compared with the same period last year.
Refining: Volume of crude oil processed by Sinopec decreased by 3.27% as compared with the corresponding period of last year and increased by 1.21% compared with the previous quarter ending on 31 December 2008. Meanwhile, the output of gasoline increased by 15.32% yoy and increased by 3.25% compared with the previous quarter.
Chemicals: In Q1-09, domestic demand for chemical products decreased yoy. The capital expenditure of the chemical segment was RMB 4,641 mln, mainly used in the construction of two 1 mln tpa ethylene projects in Tianjin and Zhenhai. Production volume of ethylene and synthetic resin declined by 12.22% and 3.30% respectively compared to the corresponding period of last year, while it increased by 3.41% and 4.52% respectively compared with the previous quarter. With a steady rise in demand for chemical products in the past months, both at home and abroad, the gross profits from the company's chemical products segment grew gradually. The chemical segment achieved an operating profit of RMB 2,800 million, up 80.7% yoy.