REG - China Pet &Chem Corp - 1st Quarter Results
27/04/2022 10:00
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RNS Number : 5299J China Petroleum & Chemical Corp 27 April 2022
China Petroleum & Chemical Corporation
The First Quarterly Report for 2022
27 April 2022
Beijing, China
Important notice
l The Board of Directors, the Board of Supervisors of China Petroleum &
Chemical Corporation ("Sinopec Corp." or "the Company") and its directors,
supervisors and senior management warrant the authenticity, accuracy and
completeness of the information contained in this report and there are no
false representations, misleading statements or material omissions and
severally and jointly accept full responsibility.
l The first quarterly report for 2022 was approved at the 8(th) meeting of the
Eighth Session of the Board of Directors of Sinopec Corp. All directors
attended this meeting.
l Mr. Ma Yongsheng, Chairman, Mr. Yu Baocai, President, Ms. Shou Donghua,
Chief Financial Officer and Head of the Financial Department of Sinopec Corp.
warrant the authenticity, accuracy and completeness of the financial
statements contained in this quarterly report.
l The financial statements in this quarterly report were not audited.
1. Principal financial data
1.1 Principal financial data and indicators
1.1.1 Principal financial data and indicators prepared in accordance with
China Accounting Standards for Business Enterprises (CASs)
RMB million
Items As of 31 As of 31 Change
March 2022 December 2021 (%)
Total assets 2,014,107 1,889,255 6.6
Total equity attributable to equity shareholders of the Company 794,311 775,102 2.5
RMB million
Three-month period Three-month period Three-month period ended 31 March Change
ended 31 March ended 31 March 2021 (%)
2022 2021 (before adjustment)
(adjusted)
Operating income 771,386 576,559 576,982 33.8
Net profit attributable to equity shareholders of the Company 22,605 18,160 17,929 24.5
Net profit attributable to equity shareholders of the Company excluding 22,450 17,674 17,674 27.0
extraordinary gains and losses
Net cash flow used in operating activities (46,781) (15,188) (15,578) -
Basic earnings per share (RMB) 0.187 0.150 0.148 24.7
Diluted earnings per share (RMB) 0.187 0.150 0.148 24.7
Weighted average return on net assets 2.88 2.38 2.38 0.5
(%) percentage
points
Note: The Company has completed the purchase of non-equity assets of Cangzhou
branch of Sinopec Group Asset Management Co., Ltd and Beijing Orient
Petrochemical Industry Co., Ltd on 1 July 2021, and Sinopec Beihai Refining
and Chemical Limited Liability Company, a subsidiary of Sinopec Corp., has
completed the purchase of non-equity assets of Beihai Petrochemical Limited
Liability Company of Sinopec Group on 1 July 2021. The Company has completed
the purchase of non-equity assets and liabilities of Sinopec Group Asset
Management Co., Ltd. and Sinopec Beijing Yanshan Petrochemical Co., Ltd. on 1
December 2021. Sinopec Yizheng Chemical Fibre Company Limited, a subsidiary of
Sinopec Corp., has completed the purchase of non-equity assets and liabilities
of Sinopec Group Asset Management Co., Ltd. on 1 December 2021. The
transactions described above have been accounted as business combination under
common control, thus, the Company retroactively adjusted the relevant
financial data.
1.1.2 Extraordinary items
RMB million
Extraordinary items Three-month period
ended 31 March 2022
(income)/expenses
Net gain on disposal of non-current assets (76)
Donations 8
Government grants (569)
Gains on holding and disposal of various investments (43)
Other extraordinary expenses, net 366
Subtotal (314)
Tax effect 115
Total (199)
Attributable to:
Equity shareholders of the Company (155)
Minority interests (44)
1.1.3 Principal financial data and indicators prepared in accordance with
International Financial Reporting Standards (IFRS)
RMB million
Items As of 31 As of 31 Change
March 2022 December 2021 (%)
Total assets 2,014,107 1,889,255 6.6
Total equity attributable to shareholders of the Company 793,396 774,182 2.5
RMB: million
Three-month period ended 31March Three-month period Three-month period Change
2022 ended 31 March ended 31 March (%)
2021 2021
(adjusted) (before adjustment)
Net cash used in operating activities (46,781) (15,188) (15,578) -
Operating profit 32,960 29,011 28,701 13.6
Net profit attributable to shareholders of the Company 23,338 18,774 18,543 24.3
Basic earnings per share (RMB) 0.193 0.155 0.153 24.5
Diluted earnings per share (RMB) 0.193 0.155 0.153 24.5
Return on net assets (%) 2.94 2.43 2.43 0.51
percentage
points
Note: The Company has completed the purchase of non-equity assets of Cangzhou
branch of Sinopec Group Asset Management Co., Ltd and Beijing Orient
Petrochemical Industry Co., Ltd on 1 July 2021, and Sinopec Beihai Refining
and Chemical Limited Liability Company, a subsidiary of Sinopec Corp., has
completed the purchase of non-equity assets of Beihai Petrochemical Limited
Liability Company of Sinopec Group on 1 July 2021. The Company has completed
the purchase of non-equity assets and liabilities of Sinopec Group Asset
Management Co., Ltd. and Sinopec Beijing Yanshan Petrochemical Co., Ltd. on 1
December 2021. Sinopec Yizheng Chemical Fibre Company Limited, a subsidiary of
Sinopec Corp., has completed the purchase of non-equity assets and liabilities
of Sinopec Group Asset Management Co., Ltd. on 1 December 2021. The
transactions described above have been accounted as business combination under
common control, thus, the Company retroactively adjusted the relevant
financial data.
1.2 Significant changes in major items contained in the consolidated financial
statements prepared in accordance with CASs.
Items of Consolidated Balance Sheet As of 31 As of 31 Increase/(Decrease) Main reasons for changes
March December
2022 2021
Amount Percentage
RMB RMB million RMB million （%）
million
Financial assets held for trading 1,000 - 1,000 - Increase in structured deposits
Derivative financial assets 35,354 18,371 16,983 92.4 Impact of floating profit and loss of crude oil hedging business
Derivative financial liabilities 22,139 3,223 18,916 586.9
Accounts receivable 76,417 34,861 41,556 119.2 Increase in accounts receivable due to increase in prices of crude oil and
refined oil products
Inventories 289,860 207,433 82,427 39.7 Increase in inventory value of crude oil and refined oil products due to the
significant increase of international crude oil prices
Short-term loans 55,078 27,366 27,712 101.3 Increase in low-interest short-term loans for supplementary of liquidity
Taxes payable 42,374 81,267 (38,893) (47.9) Decrease in taxes payable due to the accomplished payment of taxes in this
period
Other current liabilities 59,570 31,762 27,808 87.6 Increase in low-interest debentures for supplementary of liquidity
Other comprehensive income (4,812) (690) (4,122) - Impact of changes in effective hedging business
Items of Consolidated Income Statement For three-month Increase/(Decrease) Main reasons for changes
period ended
31 March
2022 2021 Amount Percentage
RMB Million RMB RMB Million （%）
Million
Operating income 771,386 576,559 194,827 33.8 Due to the increase in products prices
Operating costs 729,326 548,652 180,674 32.9 Increase in procurement costs of crude oil due to the increase in commodity
prices
Research and development expenses 2,706 2,069 637 30.8 Expand investment in research and development in reporting period
Investment income (1,662) (76) (1,586) - Decrease in investment income of associates and joint ventures and the
impact of gains and losses of derivative financial instruments
(Losses)/gains from changes in fair value (6,937) 2,095 (9,032) - Impact of floating gains and losses of derivative financial instruments
Items of Consolidated For three-month period ended Increase/(Decrease) Main reasons for changes
Cash Flow Statement 31 March
2022 2021 Amount Percentage
RMB RMB RMB million （%）
million million
Other cash received relating to operating activities 55,649 37,468 18,181 48.5 Increase in derivative margins received
Cash paid for goods and services (663,927) (484,258) (179,669) 37.1 Increase in procurement prices of crude oil and other feedstocks
Other cash paid relating to operating activities (80,441) (44,448) (35,993) 81.0 Increase in payment of derivative margins
Net cash received from disposal of subsidiaries and other business entities 1 4,305 (4,304) (100.0) Payment of pipeline transaction received in the same period of 2021 and no
such item in the reporting period
Other cash received relating to investing activities 14,689 10,268 4,421 43.1 Increase in amount received of time deposits with maturities over three months
Net cash paid for the acquisition of subsidiaries and other business entities (1,562) - (1,562) - Cash paid for the asset acquisition
Other cash paid relating to investing activities (10,831) (7,077) (3,754) 53.0 Increase in time deposits with maturities over three months
2. Shareholders information
Total number of shareholders and top ten shareholders at the end of the
reporting period
Total number of shareholders at the end of the reporting period Total number of shareholders was 530,030, including 524,487 holders of
domestic A shares and 5,543 holders of overseas H shares.
Top ten shareholders
Name of shareholder Total number of shares held Percentage Number of shares subject to pledge or lock-ups Nature of shareholder
(%)
China Petrochemical Corporation 82,709,227,393 68.31 0 State-owned share
HKSCC (Nominees) Limited 25,386,047,959 20.97 Unknown H share
中国证券金融股份有限公司 2,325,374,407 1.92 0 A share
香港中央结算有限公司 1,123,654,979 0.93 0 A share
中国人寿保险股份有限公司－传统－普通保险产品－005L－CT001沪 665,551,331 0.55 0 A share
中央汇金资产管理有限责任公司 315,223,600 0.26 0 A share
国信证券股份有限公司 235,474,124 0.19 0 A share
中国工商银行－上证50交易型开放式指数 94,682,676 0.08 0 A share
全国社保基金一一八组合 83,162,900 0.07 0 A share
招商银行股份有限公司－上证红利交易型开放式指数证券投资基金 83,006,016 0.07 0 A share
Note: Sinopec Century Bright Capital Investment Limited, overseas wholly-owned
subsidiary of China Petrochemical Corporation, holds 654,034,000 H shares,
accounting for 0.54% of the total issued share capital of Sinopec Corp. Those
shareholdings were included in the total number of the shares held by HKSCC
(Nominees) Limited.
Statement on the connected relationship or acting in concert among the
aforementioned shareholders:
Sinopec Corp. is not aware of any connected relationship or acting in concert
among or between the above-mentioned shareholders.
3. Review of operating results
In the first quarter of 2022, the world situation was complex and volatile.
China's economy performed within an appropriate range overall, with gross
domestic product (GDP) up by 4.8% year on year. The international crude oil
prices increased significantly and the spot price of Platt's Brent for the
first quarter averaged USD 101.2 per barrel, up by 66.3% year on year. The
domestic demand for natural gas, refined oil products and chemical products
maintained growth.
The Company actively responded to market changes, optimized the whole business
chain, strengthened the integration and coordination of production and sales,
made great efforts to expand market and increase sales volume, and achieved
good performance. In accordance with CASs, net profit attributable to equity
shareholders of the Company was RMB 22.605 billion, up by 24.5% year on year.
In accordance with IFRS, net profit attributable to equity shareholders of the
Company was RMB 23.338 billion, up by 24.3% year on year.
Exploration and Production: The Company seized the opportunity of high crude
oil prices, continuously promoted high-quality exploration and accelerated
profit-oriented development, and made positive progress in maintaining oil
production, increasing gas output and improving profitability. In exploration,
we strengthened risk exploration in new areas, and made important
breakthroughs of oil and gas exploration in Shunbei, Shengli, and Sichuan
Basin. In development, we accelerated the oil production capacity construction
in Shunbei and Tahe oilfields, and sped up the gas production capacity
construction in Western Sichuan, Dongsheng, Weirong, and Fuling. The Company
strengthened the optimization of the whole business chain of natural gas and
continuously promoted the scale and efficiency of natural gas business. In the
first quarter, the Company's oil and gas production reached 121.41 million
barrels of oil equivalent, up by 3.7% year on year, with natural gas
production reaching 313.94 billion cubic feet, up by 7.7% year on year. The
exploration and production segment realised an earnings before interest and
tax (EBIT) of RMB 11.463 billion, up by 273.1% year on year.
Exploration and Production Unit Three-month period ended 31 March Changes
2022 2021 (%)
Oil and gas production million boe 121.41 117.03 3.7
Crude oil production million barrels 69.07 68.41 1.0
China million barrels 61.60 61.23 0.6
Overseas million barrels 7.47 7.18 4.0
Natural gas production billion cubic feet 313.94 291.60 7.7
Realised crude oil price USD/barrel 89.02 54.89 62.2
Realised natural gas price USD/thousand cubic feet 8.14 7.07 15.2
Conversion:
For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas
production of crude oil, 1 tonne = 7.26 barrels.
For production of natural gas, 1 cubic meter = 35.31 cubic feet.
Refining: Closely following market changes, the Company vigorously optimized
production operation to maximize the overall profits along the business chain.
We optimized the procurement schedule and resources allocation of crude oil
and lowered the procurement cost. We continuously optimized product slate, and
made steady progress in shifting to chemicals feedstock and refining
specialities, maintaining high utilization rate. We accelerated the
construction of advanced production capacity and took steady steps to promote
structural adjustment projects. The Company supplied hydrogen to Beijing
Winter Olympics and Paralympics and continued to promote the construction of
hydrogen supply projects. In the first quarter, the Company processed 64.19
million tonnes of crude oil, up by 2.7% year on year, yielding 37.36 million
tonnes of refined oil products, with a year-on-year increase of 4.7%. The
refining segment realised EBIT of RMB 22.919 billion, up by 15.2% year on
year.
Refining Unit Three-month period ended 31 March Changes
(%)
2022 2021
Refinery throughput million tonnes 64.19 62.52 2.7
Gasoline, diesel and kerosene production million tonnes 37.36 35.70 4.7
Gasoline million tonnes 16.48 16.37 0.7
Diesel million tonnes 15.72 14.34 9.6
Kerosene million tonnes 5.16 4.99 3.4
Light chemical feedstock production million tonnes 11.79 11.60 1.6
Light product yield % 74.48 74.22 0.26
percentage points
Refining yield % 95.26 95.26 0
percentage point
Note: Including 100% production of domestic joint ventures.
Marketing and Distribution: The Company gave full play to the advantages of
integration and marketing network, adjusted operation strategy in a timely
manner, dynamically optimized resources allocation, strengthened integration
of production and sales and made great efforts to expand sales volume and
improve efficiency, maximizing the value realization of business chain as much
as possible. We actively promoted the construction of comprehensive service
stations including oil, gas, hydrogen, electricity and non-fuel businesses and
advanced the construction of new energy service network. We constantly
integrated the online and offline businesses and accelerated the development
of new economy business models, to leverage the value of marketing network. In
the first quarter, domestic sales volume of refined oil products was 41.06
million tonnes, up by 2.6% year on year. The marketing and distribution
segment realised EBIT of RMB 8.993 billion, up by 5.2% year on year.
Marketing and Distribution Unit Three-month period Changes
ended 31 March (%)
2022 2021
Total sales volume of refined oil products million tonnes 51.02 51.93 (1.8)
Total domestic sales volume of refined oil products million tonnes 41.06 40.03 2.6
Retail million tonnes 27.34 27.15 0.7
Direct sales & Distribution million tonnes 13.72 12.88 6.5
Annualized average throughput per station tonnes 3,559 3,536 0.7
Note: The total sales volume of refined oil products includes the amount of
trading volume.
Chemicals: Confronted with the severe situation of fierce competition and
squeezed margin , the Company continuously diversified raw materials and
optimized the utilization rate and product slate in a timely manner. We
integrated production with marketing, adjusted maintenance schedule, increased
production of profitable products, including EVA, BR, BDO and etc. We
constantly increased output of high value-added products and the production
ratio of synthetic resin, synthetic fibre, and fine chemicals with added value
were increased by 1.6, 6.5 and 1.6 percentage points respectively. Meanwhile,
the Company actively promoted the construction of advanced capacity. In the
first quarter, the ethylene production was 3.606 million tonnes, up by 6.7%
year on year, and the total chemicals sales volume was 20.64 million tonnes,
up by 4.0% year on year. The chemicals segment realised EBIT of RMB 1.890
billion, down by 79.5% year on year.
Chemicals Unit Three-month period ended 31 March Changes
(%)
2022 2021
Ethylene thousand tonnes 3,606 3,380 6.7
Synthetic resin thousand tonnes 4,867 4,787 1.7
Synthetic rubber thousand tonnes 353 322 9.6
Monomers and polymers for synthetic fibre thousand tonnes 2,491 2,343 6.3
Synthetic fibre thousand tonnes 286 351 (18.5)
Note: Including 100% production of domestic joint ventures.
Capital expenditure: In the first quarter, focusing on investment quality and
return, the Company continued to optimize investment management, with total
capital expenditures of RMB 25.38 billion. The capital expenditures of the
exploration and production segment was RMB 15.25 billion, mainly used for the
crude production capacity construction in Shunbei and Tahe oilfields, and
natural gas production capacity construction in Western Sichuan, Dongsheng and
construction of storage and transmission facilities of Longkou LNG. The
capital expenditures of the refining segment was RMB 6.03 billion, mainly used
for the expansion of Zhenhai refinery and structural adjustment of Anqing and
Yangzi refineries. The capital expenditures of the marketing and distribution
segment was RMB 0.84 billion, mainly used for construction of comprehensive
energy stations integrated with oil, gas, hydrogen, electricity and services
and logistics facilities. The capital expenditures of the chemicals segment
was RMB 2.30 billion, mainly used for Hainan and Tianjin Nangang ethylene
projects, Jiujiang Aromatics project, Shanghai large-tow carbon fiber project,
Yizheng PTA project, Guizhou PGA project. The capital expenditures of the
corporate and others was RMB 0.96 billion, mainly used for R&D and
information technology projects.
This quarterly results announcement is published in both Chinese and English
languages. In the event of any inconsistency between the two versions, the
Chinese version shall prevail.
By Order of the Board
Chairman
Ma Yongsheng
27 April 2022
4 Appendix
4.1 Quarterly financial statements prepared under China Accounting Standards
for Business Enterprises (CASs)
Consolidated Balance Sheet
As at 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items At 31 March 2022 At 31 December 2021
Current assets:
Cash at bank and on hand 187,320 221,989
Financial assets held for trading 1,000 -
Derivative financial assets 35,354 18,371
Accounts receivable 76,417 34,861
Receivables financing 7,621 5,939
Prepayments 14,010 9,267
Other receivables 46,277 35,664
Inventories 289,860 207,433
Other current assets 22,006 24,500
Total current assets 679,865 558,024
Non-current assets:
Long-term equity investments 211,712 209,179
Other equity instrument investments 773 767
Fixed assets 598,404 598,932
Construction in progress 156,400 155,939
Right-of-use assets 184,828 184,974
Intangible assets 118,440 119,210
Goodwill 8,587 8,594
Long-term deferred expenses 9,967 10,007
Deferred tax assets 20,784 19,389
Other non-current assets 24,347 24,240
Total non-current assets 1,334,242 1,331,231
Total assets 2,014,107 1,889,255
Consolidated Balance Sheet (Continued)
Current liabilities:
Short-term loans 55,078 27,366
Derivative financial liabilities 22,139 3,223
Bills payable 13,257 11,721
Accounts payable 253,007 203,919
Contract liabilities 123,705 124,622
Employee benefits payable 18,752 14,048
Taxes payable 42,374 81,267
Other payables 111,917 114,701
Non-current liabilities due within one year 30,202 28,651
Other current liabilities 59,570 31,762
Total current liabilities 730,001 641,280
Non-current liabilities:
Long-term loans 64,197 49,341
Debentures payable 42,605 42,649
Lease liabilities 170,752 170,233
Provisions 43,751 43,525
Deferred tax liabilities 8,623 7,910
Other non-current liabilities 18,370 18,276
Total non-current liabilities 348,298 331,934
Total liabilities 1,078,299 973,214
Shareholders' equity:
Share capital 121,071 121,071
Capital reserve 120,189 120,188
Other comprehensive income (4,812) (690)
Specific reserve 3,389 2,664
Surplus reserves 213,224 213,224
Retained earnings 341,250 318,645
Total equity attributable to shareholders of the Company 794,311 775,102
Minority interests 141,497 140,939
Total shareholders' equity 935,808 916,041
Total liabilities and shareholders' equity 2,014,107 1,889,255
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Balance Sheet
As at 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items At 31 March 2022 At 31 December 2021
Current assets：
Cash at bank and on hand 92,205 110,691
Derivative financial assets 10,433 4,503
Accounts receivable 36,250 21,146
Receivables financing 498 227
Prepayments 6,960 4,540
Other receivables 40,342 46,929
Inventories 74,125 63,661
Other current assets 17,988 23,408
Total current assets 278,801 275,105
Non-current assets：
Long-term equity investments 360,011 360,847
Other equity instrument investments 201 201
Fixed assets 278,100 284,622
Construction in progress 70,391 66,146
Right-of-use assets 100,154 105,712
Intangible assets 9,106 9,334
Long-term deferred expenses 2,729 2,875
Deferred tax assets 9,204 8,715
Other non-current assets 42,854 34,227
Total non-current assets 872,750 872,679
Total assets 1,151,551 1,147,784
Current liabilities：
Short-term loans 30,420 16,550
Derivative financial liabilities 6,766 1,121
Bills payable 5,996 6,058
Accounts payable 91,998 85,307
Contract liabilities 7,139 7,505
Employee benefits payable 11,007 8,398
Taxes payable 25,426 46,333
Other payables 175,911 211,179
Non-current liabilities due within one year 16,765 16,737
Other current liabilities 37,453 13,702
Total current liabilities 408,881 412,890
Balance Sheet (Continued)
Non-current liabilities：
Long-term loans 43,710 34,258
Debentures payable 31,524 31,522
Lease liabilities 99,156 104,426
Provisions 35,283 35,271
Other non-current liabilities 2,888 3,103
Total non-current liabilities 212,561 208,580
Total liabilities 621,442 621,470
Shareholders' equity：
Share capital 121,071 121,071
Capital reserve 67,891 67,897
Other comprehensive income 3,613 6,024
Specific reserve 2,011 1,658
Surplus reserves 213,224 213,224
Retained earnings 122,299 116,440
Total shareholders' equity 530,109 526,314
Total liabilities and shareholders' equity 1,151,551 1,147,784
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Consolidated Income Statement
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
I. Total operating income 771,386 576,559
II. Total operating costs 729,326 548,652
Including: Operating costs 622,875 448,194
Taxes and surcharges 71,186 60,415
Selling and distribution expenses 14,180 16,070
General and administrative expenses 13,091 17,028
Research and development expenses 2,706 2,069
Financial expenses 2,305 2,380
Including: Interest expenses 3,743 3,685
Interest income 1,387 1,297
Exploration expenses, 2,983 2,496
including dry holes
Add: Other income 492 474
Investment income (1,662) (76)
Including: Income from investment 3,619 4,311
in associates and joint ventures
(Losses)/gains from changes in (6,937) 2,095
fair value
Credit impairment (losses)/reversal (51) 14
Impairment (losses)/reversal (201) 11
Asset disposal gains 76 164
III. Operating profit 33,777 30,589
Add: Non-operating income 249 304
Less: Non-operating expenses 541 597
IV. Profit before taxation 33,485 30,296
Less: Income tax expense 7,009 7,160
V. Net profit 26,476 23,136
Including: Net profit of acquiree before - 231
bussiness combination under common control
Classification by going concern:
(i) Continuous operating net profit 26,476 23,136
(ii) Termination of net profit - -
Classification by ownership:
(i) Equity shareholders of the Company 22,605 18,160
(ii) Minority interests 3,871 4,976
Units: million Currency: RMB Type: unaudited
Consolidated Income Statement (Continued)
VI. Total other comprehensive income 2,500 4,857
Items that may not be reclassified
subsequently to profit or loss:
Changes in fair value of other - 20
equity instrument investments
Items that may be reclassified
subsequently to profit or loss:
Other comprehensive income that can (768) (135)
be converted into profit or loss under
the equity method
Cost of hedging reserve (630) (20)
Cash flow hedges 4,556 4,627
Foreign currency translation differences (658) 365
VII. Total comprehensive income 28,976 27,993
Equity shareholders of the Company 25,494 22,682
Minority interests 3,482 5,311
VIII. Earnings per
share:
(i) Basic earnings per share (RMB/Share) 0.187 0.150
(ii) Diluted earnings per share (RMB/Share) 0.187 0.150
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Income Statement
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
I. Operating income 318,615 227,855
Less: Operating costs 255,660 176,554
Taxes and surcharges 44,178 36,511
Selling and distribution expenses 413 967
General and administrative expenses 5,824 7,922
Research and development costs 2,616 1,956
Financial expenses 2,568 2,629
Including: Interest expenses 3,370 3,317
Interest income 805 682
Exploration expenses, including dry holes 2,635 2,056
Add: Other income 291 232
Investment income 2,651 3,058
Including: Income from investment in associates and joint 1,356 1,716
ventures
(Losses)/gains from changes in fair value (179) 288
Credit impairment (losses)/reversal (8) 1
Impairment losses (1) (1)
Asset disposal gains 120 -
II. Operating profit 7,595 2,838
Add: Non-operating income 50 99
Less: Non-operating expenses 347 311
III. Profit before taxation 7,298 2,626
Less: Income tax expense 1,436 918
IV. Net profit 5,862 1,708
(i) Continuous operating net profit 5,862 1,708
(ii) Termination of net profit - -
V. Total other comprehensive income 1,558 3,514
Items that may be reclassified subsequently
to profit or loss
Other comprehensive income that can be converted into profit or loss under the 112 7
equity method
Cash flow hedges 1,446 3,507
VI. Total comprehensive income 7,420 5,222
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Consolidated Cash Flow Statement
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 784,361 604,709
Refund of taxes and levies 165 39
Other cash received relating to operating activities 55,649 37,468
Sub-total of cash inflows 840,175 642,216
Cash paid for goods and services (663,927) (484,258)
Cash paid to and for employees (20,068) (18,400)
Payments of taxes and levies (122,520) (110,298)
Other cash paid relating to operating (80,441) (44,448)
activities
Sub-total of cash outflows (886,956) (657,404)
Net cash flow used in operating activities (46,781) (15,188)
II. Cash flows from investing activities:
Cash received from disposal of investments 35 177
Cash received from returns on investments 1,095 895
Net cash received from disposal of fixed assets, intangible assets and other 6 324
long-term assets
Other cash received relating to investing 14,689 10,268
activities
Net cash received from disposal of subsidiaries and other business entities 1 4,305
Sub-total of cash inflows 15,826 15,969
Cash paid for acquisition of fixed assets, intangible assets and other (35,567) (27,579)
long-term assets
Cash paid for acquisition of investments (5,946) (5,527)
Net cash paid for the acquisition of subsidiaries and other business entities (1,562) -
Other cash paid relating to investing (10,831) (7,077)
activities
Sub-total of cash outflows (53,906) (40,183)
Net cash flow used in investing activities (38,080) (24,214)
Consolidated Cash Flow Statement (Continued)
III. Cash flows from financing activities:
Cash received from capital contributions 779 124
Including: Cash received from minority shareholders' capital contributions to 626 48
subsidiaries
Cash received from borrowings 138,034 114,768
Other cash received relating to financing activities 24 7
Sub-total of cash inflows 138,837 114,899
Cash repayments of borrowings (73,648) (58,339)
Cash paid for dividends, profits distribution or interest (1,489) (2,012)
Including: Subsidiaries' cash payments for distribution of dividends or (188) (840)
profits to minority shareholders
Other cash paid relating to financing (4,920) (3,662)
activities
Sub-total of cash outflows (80,057) (64,013)
Net cash flow from financing activities 58,780 50,886
IV. Effects of changes in foreign exchange rate (357) 204
V. Net (decrease)/increase in cash and cash equivalents (26,438) 11,688
Add: Cash and cash equivalents at the beginning of the period 108,590 87,559
VI. Cash and cash equivalents at the end of the period 82,152 99,247
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Cash Flow Statement
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 342,305 249,027
Refund of taxes and levies 90 21
Other cash received relating to operating activities 7,902 6,966
Sub-total of cash inflows 350,297 256,014
Cash paid for goods and services (263,091) (184,870)
Cash paid to and for employees (10,585) (9,474)
Payments of taxes and levies (65,952) (63,405)
Other cash paid relating to operating activities (15,830) (6,431)
Sub-total of cash outflows (355,458) (264,180)
Net cash flow used in operating activities (5,161) (8,166)
II. Cash flows from investing activities:
Cash received from disposal of investments 1,116 4,399
Cash received from returns on investments 1,277 1,567
Net cash received from disposal of fixed assets, intangible assets and other 2 17
long-term assets
Other cash received relating to investing activities 37,794 26,174
Sub-total of cash inflows 40,189 32,157
Cash paid for acquisition of fixed assets, intangible assets and other (13,881) (11,540)
long-term assets
Cash paid for acquisition of investments (7,705) (9,795)
Other cash paid relating to investing activities (43,604) (26,479)
Sub-total of cash outflows (65,190) (47,814)
Net cash flow used in investing activities (25,001) (15,657)
III. Cash flows from financing activities:
Cash received from borrowings 65,601 73,395
Other cash received relating to financing activities 101,758 307,581
Sub-total of cash inflows 167,359 380,976
Cash repayments of borrowings (23,784) (30,225)
Cash paid for dividends or interest (1,941) (2,005)
Other cash paid relating to financing activities (125,190) (318,350)
Sub-total of cash outflows (150,915) (350,580)
Net cash flow from financing activities 16,444 30,396
Cash Flow Statement (Continued)
IV. Net (decrease)/increase in cash and cash equivalents (13,718) 6,573
Add：Cash and cash equivalents at the beginning of the period 34,575 28,081
V. Cash and cash equivalents at the end of the period 20,857 34,654
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Segment Reporting
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
Income from principal operations
Exploration and production
External sales 52,455 34,776
Inter-segment sales 28,752 18,812
Subtotal 81,207 53,588
Refining
External sales 47,758 37,606
Inter-segment sales 336,542 259,441
Subtotal 384,300 297,047
Marketing and distribution
External sales 370,095 278,914
Inter-segment sales 2,704 1,359
Subtotal 372,799 280,273
Chemicals
External sales 113,153 95,487
Inter-segment sales 21,115 14,105
Subtotal 134,268 109,592
Corporate and others
External sales 171,306 114,257
Inter-segment sales 244,714 161,530
Subtotal 416,020 275,787
Elimination of inter-segment sales (633,827) (455,247)
Consolidated income from principal operations 754,767 561,040
Income from other operations
Exploration and production 1,817 1,754
Refining 940 1,149
Marketing and distribution 10,754 9,877
Chemicals 2,600 2,364
Corporate and others 508 375
Consolidated income from other operations 16,619 15,519
Consolidated operating income 771,386 576,559
Segment Reporting (Continued)
Operating profit
By segment
Exploration and production 10,494 1,885
Refining 22,061 19,665
Marketing and distribution 9,318 8,009
Chemicals 1,157 7,153
Corporate and others 10,853 1,300
Elimination (9,770) (7,700)
Total segment operating profit 44,113 30,312
Investment income
Exploration and production 1,153 803
Refining 416 (10)
Marketing and distribution (148) 269
Chemicals 568 1,828
Corporate and others (3,651) (2,966)
Total segment investment income (1,662) (76)
Financial expenses (2,305) (2,380)
(Losses)/gains from changes in fair value (6,937) 2,095
Asset disposal gains/(losses) 76 164
Other income 492 474
Operating profit 33,777 30,589
Add: Non-operating income 249 304
Less: Non-operating expenses 541 597
Profit before taxation 33,485 30,296
4.2 Quarterly financial statements prepared under International Financial
Reporting Standards (IFRS)
Consolidated Income Statement
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
Revenue
Revenue from primary business 754,767 561,040
Other operating revenues 16,619 15,519
Subtotal 771,386 576,559
Operating expenses
Purchased crude oil, products and (588,136) (421,785)
operating supplies and expenses
Selling, general and administrative expenses (13,575) (12,376)
Depreciation, depletion and amortisation (26,694) (26,647)
Exploration expenses, including dry holes (2,983) (2,496)
Personnel expenses (23,741) (21,852)
Taxes other than income tax (71,186) (60,415)
Impairment (losses)/reversal on trade and other receivables (51) 14
Other operating income/(expenses), net (12,060) (1,991)
Total operating expenses (738,426) (547,548)
Operating profit 32,960 29,011
Finance costs
Interest expense (3,743) (3,685)
Interest income 1,387 1,297
Foreign currency exchange gains, net 51 8
Net finance costs (2,305) (2,380)
Investment income 64 68
Share of profits less losses from associates 3,619 4,311
and joint ventures
Profit before taxation 34,338 31,010
Income tax expense (7,009) (7,160)
Profit for the period 27,329 23,850
Attributable to：
Shareholders of the Company 23,338 18,774
Non-controlling interests 3,991 5,076
Profit for the period 27,329 23,850
Earnings per share
Basic earnings per share (RMB) 0.193 0.155
Diluted earnings per share (RMB) 0.193 0.155
Consolidated Statement of Comprehensive Income
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
Profit for the period 27,329 23,850
Total other comprehensive income: 2,500 4,857
Items that may not be reclassified subsequently to profit or loss:
Equity investments at fair value through other comprehensive income - 20
Items that may be reclassified subsequently to profit or loss:
Cost of hedging reserve (630) (20)
Share of other comprehensive income of associates and joint ventures (768) (135)
Cash flow hedges 4,556 4,627
Foreign currency translation differences (658) 365
Total comprehensive income 29,829 28,707
Attributable to:
Shareholders of the Company 26,227 23,296
Non-controlling interests 3,602 5,411
Consolidated Statement of Financial Position
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items At 31 March 2022 At 31 December 2021
Non-current assets：
Property, plant and equipment, net 598,382 598,925
Construction in progress 156,400 155,939
Right-of-use assets 267,991 268,408
Goodwill 8,587 8,594
Interest in associates 151,783 148,729
Interest in joint ventures 59,929 60,450
Financial assets at fair value through other 773 767
comprehensive income
Deferred tax assets 20,784 19,389
Long-term prepayments and other non-current assets 69,613 70,030
Total non-current assets 1,334,242 1,331,231
Current assets:
Cash and cash equivalents 82,152 108,590
Time deposits with financial institutions 105,168 113,399
Financial assets at fair value through profit or 1,000 -
loss
Derivatives financial assets 35,354 18,371
Trade accounts receivable 76,417 34,861
Financial assets at fair value through other 7,621 5,939
comprehensive income
Inventories 289,860 207,433
Prepaid expenses and other current assets 82,293 69,431
Total current assets 679,865 558,024
Current liabilities：
Short-term debts 80,336 35,252
Loans from Sinopec Group Company and fellow 7,208 2,873
subsidiaries
Lease liabilities 16,357 15,173
Derivatives financial liabilities 22,139 3,223
Trade accounts payable and bills payable 266,264 215,640
Contract liabilities 123,705 124,622
Other payables 209,063 239,688
Income tax payable 4,929 4,809
Total current liabilities 730,001 641,280
Consolidated Statement of Financial Position (Continued)
Net current liabilities 50,136 83,256
Total assets less current liabilities 1,284,106 1,247,975
Non-current liabilities：
Long-term debts 92,717 78,300
Loans from Sinopec Group Company and fellow subsidiaries 14,085 13,690
Lease liabilities 170,752 170,233
Deferred tax liabilities 8,623 7,910
Provisions 43,751 43,525
Other long-term liabilities 19,332 19,243
Total non-current liabilities 349,260 332,901
Total net assets 934,846 915,074
Equity：
Share capital 121,071 121,071
Reserves 672,325 653,111
Total equity attributable to shareholders of the Company 793,396 774,182
Non-controlling interests 141,450 140,892
Total equity 934,846 915,074
Consolidated Statement of Cash Flows
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
Net cash used in operating activities(a) (46,781) (15,188)
Investing activities
Capital expenditure (31,762) (20,723)
Exploratory wells expenditure (3,805) (6,856)
Purchase of investments (4,946) (2,327)
Payment for financial assets at fair value through profit or loss (1,000) (3,200)
Payment for acquisition of subsidiary, net of cash acquired (1,562) -
Proceeds from disposal of investments 36 4,482
Proceeds from disposal of property, plant, equipment and other non-current 6 324
assets
Increase in time deposits with maturities over three months (6,511) (4,748)
Decrease in time deposits with maturities over three months 13,516 9,359
Interest received 1,311 287
Investment and dividend income received 1,095 895
Payments of other investing activities (4,458) (1,707)
Net cash used in investing activities (38,080) (24,214)
Financing activities
Proceeds from bank and other loans 138,034 114,768
Repayments of bank and other loans (73,648) (58,339)
Contributions to subsidiaries from non-controlling interests 779 124
Distributions by subsidiaries to non-controlling interests (188) (840)
Interest paid (1,301) (1,172)
Repayments of lease liabilities (3,174) (3,649)
Repayments of other financing activities (1,722) (6)
Net cash generated from financing activities 58,780 50,886
Net (decrease)/increase in cash and cash equivalents (26,081) 11,484
Cash and cash equivalents at 1 January 108,590 87,559
Effect of foreign currency exchange rate changes (357) 204
Cash and cash equivalents at 31 March 82,152 99,247
Note to Consolidated Statement of Cash Flows
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
(a) Reconciliation from profit before taxation to net cash used in operating
activities
Items Three-month period ended 31 Three-month period ended 31
March 2022 March 2021
Operating activities
Profit before taxation 34,338 31,010
Adjustments for:
Depreciation, depletion and amortisation 26,694 26,647
Dry hole costs written off 1,886 1,222
Share of profits from associates and joint ventures (3,619) (4,311)
Investment income (64) (68)
Interest income (1,387) (1,297)
Interest expense 3,743 3,685
Loss/(gain) on foreign currency exchange rate changes and 6,886 (2,087)
derivative financial instruments
Gain on disposal of property, plant, equipment and (76) (164)
other non-current assets, net
Impairment losses/(reversal) on assets 201 (11)
Impairment losses/(reversal) on trade and other receivables 51 (14)
Operating profit before change of operating capital 68,653 54,612
Accounts receivable and other current assets (59,265) (13,800)
Inventories (82,616) (30,921)
Accounts payable and other current liabilities 33,019 (22,282)
Subtotal (40,209) (12,391)
Income tax paid (6,572) (2,797)
Net cash used in operating activities (46,781) (15,188)
Segment Reporting
For the three-month period ended 31 March 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
Revenue
Exploration and production
External sales 52,455 34,776
Inter-segment sales 28,752 18,812
Subtotal 81,207 53,588
Refining
External sales 47,758 37,606
Inter-segment sales 336,542 259,441
Subtotal 384,300 297,047
Marketing and distribution
External sales 370,095 278,914
Inter-segment sales 2,704 1,359
Subtotal 372,799 280,273
Chemicals
External sales 113,153 95,487
Inter-segment sales 21,115 14,105
Subtotal 134,268 109,592
Corporate and others
External sales 171,306 114,257
Inter-segment sales 244,714 161,530
Subtotal 416,020 275,787
Elimination of inter-segment sales (633,827) (455,247)
Revenue from primary business 754,767 561,040
Other operating revenues
Exploration and production 1,817 1,754
Refining 940 1,149
Marketing and distribution 10,754 9,877
Chemicals 2,600 2,364
Corporate and others 508 375
Other operating revenues 16,619 15,519
Revenue 771,386 576,559
Segment Reporting (Continued)
Result
Operating profit/(loss)
By segment
Exploration and production 10,429 2,356
Refining 22,493 19,496
Marketing and distribution 8,564 8,021
Chemicals 1,325 7,405
Corporate and others (81) (567)
Elimination (9,770) (7,700)
Total segment operating profit 32,960 29,011
Share of profits from associates and joint ventures
Exploration and production 1,024 656
Refining 421 412
Marketing and distribution 392 525
Chemicals 630 1,795
Corporate and others 1,152 923
Aggregate share of profits from associates and joint ventures 3,619 4,311
Investment income
Exploration and production 10 60
Refining 5 (14)
Marketing and distribution 37 4
Chemicals (65) 34
Corporate and others 77 (16)
Aggregate investment income 64 68
Net finance costs (2,305) (2,380)
Profit before taxation 34,338 31,010
4.3 Differences between consolidated financial statements prepared in
accordance with the accounting policies complying with CASs and IFRS
(Unaudited)
Other than the differences in the classifications of certain financial
statements captions and the accounting for the items described below, there
are no material differences between the Group's consolidated financial
statements prepared in accordance with the accounting policies complying with
CASs and IFRS. The reconciliation presented below is included as supplemental
information, is not required as part of the basic financial statements and
does not include differences related to classification, presentation or
disclosures. Such information has not been subject to independent audit or
review. The major differences are:
(i) Government grants
Under CASs, grants from the government are credited to capital reserve if
required by relevant governmental regulations. Under IFRS, government grants
relating to the purchase of fixed assets are recognised as deferred income and
are transferred to the income statement over the useful life of these assets.
(ii) Safety production fund
Under CASs, safety production fund should be recognised in profit or loss with
a corresponding increase in reserve according to PRC regulations. Such reserve
is reduced for expenses incurred for safety production purposes or, when
safety production related fixed assets are purchased, is reduced by the
purchased cost with a corresponding increase in the accumulated depreciation.
Such fixed assets are not depreciated thereafter. Under IFRS, payments are
expensed as incurred, or capitalised as fixed assets and depreciated according
to applicable depreciation methods.
Effects of major differences between the net profit under CASs and the profit
for the period under IFRS are analysed as follows:
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Three-month period Three-month period
ended 31 March 2022 ended 31 March 2021
Net profit under CASs 26,476 23,136
Adjustments:
Government grants(i) 5 12
Safety production fund(ii) 848 702
Profit for the period under IFRS 27,329 23,850
Effects of major differences between the shareholders' equity under CASs and
the total equity under IFRS are analysed as follows:
Units: million Currency: RMB Type: unaudited
Items As of 31 March 2022 As of 31 December 2021
Shareholders' equity under CASs 935,808 916,041
Adjustments:
Government grants(i) (962) (967)
Total equity under IFRS 934,846 915,074
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