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28 Oct 2022 10:14
China Petroleum & Chemical Corporation
The Third Quarterly Report for 2022
28 October 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 third quarterly report for 2022 was approved at the 13th meeting of the 8th 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 30 September 2022 | As of 31 December 2021 | Change (%) | ||||
Total assets | 2,050,519 | 1,889,255 | 8.5 | ||||
Total equity attributable to equity shareholders of the Company | 781,273 | 775,102 | 0.8 | ||||
|
| RMB million | |||||
Nine-months period ended 30 September | Change (%) | ||||||
2022 | 2021 (adjusted) | 2021 (before adjustment) | |||||
Operating income | 2,453,322 | 2,001,691 | 2,003,350 | 22.6 | |||
Net profit attributable to equity shareholders of the Company | 56,660 | 60,029 | 59,892 | (5.6) | |||
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses | 55,452 | 58,720 | 58,720 | (5.6) | |||
Net cash flow from operating activities | 59,244 | 116,744 | 115,723 | (49.3) | |||
Basic earnings per share (RMB) | 0.468 | 0.496 | 0.495 | (5.6) | |||
Diluted earnings per share (RMB) | 0.468 | 0.496 | 0.495 | (5.6) | |||
Weighted average return on net assets (%) | 7.28 | 7.89 | 7.92 | (0.61) percentage points | |||
Note: 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-months period ended 30 September 2022 | Nine-months period ended 30 September 2022 |
(income) /expense | (income) /expense | |
Net gain on disposal of non-current assets | (114) | (249) |
Donations | 23 | 124 |
Government grants | (669) | (2,009) |
Gains on holding and disposal of various investments | (69) | (194) |
Other extraordinary (income) /expenses, net | (95) | 193 |
Subtotal | (924) | (2,135) |
Tax effect | 198 | 673 |
Total | (726) | (1,462) |
Attributable to: | ||
Equity shareholders of the Company | (638) | (1,208) |
Minority interests | (88) | (254) |
1.1.3 Principal financial data and indicators prepared in accordance with International Financial Reporting Standards (IFRS)
RMB million | ||||
Items | As of 30 September 2022 | As of 31 December 2021 | Change (%) | |
Total assets | 2,050,519 | 1,889,255 | 8.5 | |
Total equity attributable to shareholders of the Company | 780,394 | 774,182 | 0.8 | |
|
| RMB million | ||
Nine-months period ended 30 September | Change (%) | |||
2022 | 2021 (adjusted) | 2021 (before adjustment) | ||
Net cash from operating activities | 59,244 | 116,744 | 115,723 | (49.3) |
Operating profit | 75,886 | 85,025 | 84,806 | (10.7) |
Net profit attributable to shareholders of the Company | 57,284 | 60,892 | 60,755 | (5.9) |
Basic earnings per share (RMB) | 0.473 | 0.503 | 0.502 | (5.9) |
Diluted earnings per share (RMB) | 0.473 | 0.503 | 0.502 | (5.9) |
Return on net assets (%) | 7.34 | 7.88 | 7.91 | (0.54) percentage points |
Note: 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 30 September 2022 | As of 31 December 2021 | Increase/ (Decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Financial assets held for trading | 1,030 | - | 1,030 | - | Impact of increase in structured deposits. |
Derivative financial assets | 43,768 | 18,371 | 25,397 | 138.2 | Impact of changes in profit and loss of crude oil and other products hedging business. |
Derivative financial liabilities | 16,454 | 3,223 | 13,231 | 410.5 | |
Accounts receivable | 65,796 | 34,861 | 30,935 | 88.7 | Increase in accounts receivable resulting from increased prices of crude oil and refined oil products. |
Prepayments | 12,162 | 9,267 | 2,895 | 31.2 | Prepayment for goods increased year-on-year. |
Employee benefits payable | 26,665 | 14,048 | 12,617 | 89.8 | Impact of increase in payable performance-based income. |
Taxes payable | 30,214 | 81,267 | (51,053) | (62.8) | The impact of centralized payment for deferred taxes happened in the fourth quarter of last year. |
Non-current liabilities due within one year | 69,574 | 28,651 | 40,923 | 142.8 | Increase in long-term loans and debentures payable due within one year. |
Other current liabilities | 103,849 | 31,762 | 72,087 | 227.0 | Increase in low-interest debentures for supplementary of liquidity during the reporting period. |
Treasury shares | 375 | - | 375 | - | Repurchased A shares and H shares in the reporting period. |
Other comprehensive income | 7,587 | (690) | 8,277 | - | The impact on translation of foreign currency statements and changes in effective hedging business. |
Specific reserve | 3,588 | 2,664 | 924 | 34.7 | The impact of changes in balance of safety fund reserve. |
Items of Consolidated Income Statement | Nine-months period ended 30 September 2022 | Nine-months period ended 30 September 2021 | Increase/ (Decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Other income | 5,848 | 1,671 | 4,177 | 250.0 | Increase in VAT refund on imported LNG. |
Investment (loss) /income | (6,011) | 9,520 | (15,531) | - | Decrease in investment income of associates and joint ventures and the impact of profit and loss of derivative financial instruments. |
Gains/ (loss) from changes in fair value | 1,765 | (1,112) | 2,877 | - | Impact of floating profit and loss of derivative financial instruments. |
Impairment losses | (2,376) | (1,036) | (1,340) | 129.3 | Allowance for diminution in value of inventories increased. |
Items of Consolidated Cash Flow Statement | Nine-months period ended 30 September 2022 | Nine-months period ended 30 September 2021 | Increase/(Decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Net cash flow from operating activities | 59,244 | 116,744 | (57,500) | (49.3) | Increase in working capital occupation due to the higher prices of crude oil and refined oil product. |
Refunds of taxes and levies | 8,401 | 934 | 7,467 | 799.5 | Increase in VAT refund on imported LNG. |
Other cash received relating to operating activities | 211,117 | 109,232 | 101,885 | 93.3 | Increase in derivative financial instruments margins received. |
Cash paid for goods and services | (2,180,888) | (1,650,303) | (530,585) | 32.2 | Increase in procurement cost of crude oil and other feedstocks. |
Other cash paid relating to operating activities | (247,067) | (122,068) | (124,999) | 102.4 | Increase in payment of derivative financial instruments margins. |
Cash received from disposal of investment | 517 | 6,614 | (6,097) | (92.2) | Decrease in structured deposits received year on year. |
Cash received from returns on investment | 8,718 | 6,461 | 2,257 | 34.9 | Increase in dividend received from associates and joint ventures. |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 218 | 919 | (701) | (76.3) | Decrease of gain on disposal of fixed assets. |
Net cash received from disposal of subsidiaries and other business entities | 1 | 4,764 | (4,763) | (100.0) | Payment of pipeline transaction received in the same period of 2021 and no such item in reporting period. |
Other cash received relating to investing activities | 52,283 | 26,431 | 25,852 | 97.8 | Increase in amount received of time deposits with maturities over three months. |
Cash paid for acquisition of investments | (6,350) | (18,595) | 12,245 | (65.9) | Decrease in entrusted loan year on year. |
Net cash paid for the acquisition of subsidiaries and other business entities | (7,641) | (1,114) | (6,527) | 585.9 | Cash paid for the prior year-end asset acquisition. |
Other cash paid relating to investing activities | (23,172) | (36,949) | 13,777 | (37.3) | Decrease in time deposits with maturities over three months year on year. |
Cash received from borrowings | 432,081 | 298,393 | 133,688 | 44.8 | Increase in loans. |
Cash repayments of borrowings | (332,437) | (252,759) | (79,678) | 31.5 | Increase in matured debts year on year. |
Cash paid for dividends, profits distribution or interest | (65,759) | (44,820) | (20,939) | 46.7 | The payment of dividends for the period increased year on year. |
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 479,394, including 473,819 holders of domestic A shares and 5,575 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 | 25,371,033,298 | 20.96 | Unknown | H share |
2,325,374,407 | 1.92 | 0 | A share | |
1,203,674,433 | 0.99 | 0 | A share | |
005LCT001 | 394,236,547 | 0.33 | 0 | A share |
315,223,600 | 0.26 | 0 | A share | |
235,021,324 | 0.19 | 0 | A share | |
50 | 124,680,276 | 0.10 | 0 | A share |
83,162,900 | 0.07 | 0 | A share | |
77,458,009 | 0.06 | 0 | A share | |
Note: Sinopec Century Bright Capital Investment Limited, overseas wholly-owned subsidiary of China Petrochemical Corporation, holds 767,916,000 H shares, accounting for 0.6343% 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 three quarters of 2022, the world economic growth slowed down. China effectively coordinated pandemic prevention and control with economic and social development and the overall economic operations recovered in an upward trend in the third quarter with the GDP growth of 3.9% year-on-year. The international crude oil prices rose sharply and fluctuated in the first half and dropped in the third quarter. The average spot price of Platts Brent was USD102.5 per barrel, up by 50.8% year-on-year. Domestic demand for natural gas kept stable. Based on the statistics of the Company, domestic demand for refined oil products shrank for the first half of the year and recovered with an increase of 1.5% year-on-year in the third quarter. The demand for major chemical products was weak due to the high crude oil price and the pandemic, with the ethylene equivalent consumption decreased by 1.0% year-on-year.
Confronted with severe and complex environment of production and operation, the Company gave full play to its integration advantages, actively responded to market changes, carried out in-depth optimization of the whole industrial chain, enhanced production and marketing coordination and achieved high-quality results. In accordance with CASs, net profit attributable to equity shareholders of the Company was RMB 56.660 billion, down by 5.6% year-on-year. In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB 57.284 billion, down by 5.9% year-on-year.
Exploration and Production: The Company seized the favourable opportunity of high oil prices, intensified efforts in exploration and development, consolidated the foundation of resources, improved operational performance, and realised growth in production and profit. In terms of exploration, we strengthened risk exploration and trap pre-exploration in new regions and areas, and achieved a number of oil and gas discoveries, including breakthroughs in Shunbei oil and gas fields and Tarim Basin, shale oilfield in Bohai Bay basin and Subei basin, deep exploration of natural gas in Sichuan basin. In terms of development, we accelerated capacity building of major oilfields, such as Shunbei, Tahe and offshore blocks, strengthened efficiency adjustment and fine-tuned development of mature oil fields. We also actively promoted the capacity building of key natural gas blocks in Shunbei and Sichuan basin, and enhanced optimization and profitability improvement of the whole natural gas business chain. In the first three quarters of 2022, the Company's production of oil and gas reached 363.18 million barrels of oil equivalent, up by 2.3% year-on-year, with crude oil production reaching 210.82 million barrels, up by 1.0% year-on-year and natural gas production reaching 913.8 billion cubic feet, up by 4.1% year-on-year. The exploration and production segment realised earnings before interest and tax (EBIT) of RMB 46.245 billion in the first three quarters.
Exploration and Production | Unit | Nine-month period ended 30 September | Changes | |
2022 | 2021 | (%) | ||
Oil and gas production | million boe | 363.18 | 355.01 | 2.3 |
Crude oil production | million barrels | 210.82 | 208.65 | 1.0 |
China | million barrels | 188.05 | 186.59 | 0.8 |
Overseas | million barrels | 22.77 | 22.06 | 3.2 |
Natural gas production | billion cubic feet | 913.81 | 877.85 | 4.1 |
Realised crude oil price | USD/barrel | 94.24 | 60.94 | 54.6 |
Realised natural gas price | USD/thousand cubic feet | 7.54 | 6.74 | 11.9 |
Conversion: For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil,
1 tonne = 7.05 barrels. For production of natural gas, 1 cubic meter = 35.31 cubic feet.
Refining: The Company actively responded to challenges brought by high crude oil price and the pandemic, insisted on optimization and integration of production and marketing, leveraged the adaptability of facilities and maintained stable operation. We flexibly adjusted the utilization rate, product slate and export pace closely in line with market and reduced the inventory scale. We optimized the crude oil procurement and resources allocation to reduce procurement costs. We continuously promoted to increase the yield of chemical feedstock and refining specialities, accelerated construction of advanced capacity, promoted structural adjustment projects in an orderly manner and expedited the hydrogen supply projects. In the first three quarters of 2022, the Company processed 180 million tonnes crude oil, down by 5.6% year-on-year, yielding 103 million tonnes of refined oil products, among which diesel output increased by 4.7% year-on-year. The refining segment realised EBIT of RMB 20.645 billion in the first three quarters.
Refining | Unit | Nine-month period ended 30 September | Changes | |
2022 | 2021 | (%) | ||
Refinery throughput | million tonnes | 180.07 | 190.73 | (5.6) |
Gasoline, diesel and kerosene production | million tonnes | 103.07 | 108.60 | (5.1) |
Gasoline | million tonnes | 44.98 | 49.07 | (8.3) |
Diesel | million tonnes | 44.92 | 42.92 | 4.7 |
Kerosene | million tonnes | 13.17 | 16.60 | (20.7) |
Light chemical feedstock production | million tonnes | 32.21 | 33.71 | (4.4) |
Light product yield | % | 73.95 | 73.72 | 0.23 percentage points |
Refining yield | % | 95.11 | 94.71 | 0.40 percentage points |
Note : Including 100% production of domestic joint ventures.
Marketing and Distribution: Facing the unfavourable situation of sporadic COVID-19 outbreaks in different regions, the Company strengthened the integration of production and marketing, scientifically adjusted business strategy and optimized the resources allocation. Especially, we seized the favorable opportunity of the gradual recovery of demand and continuous standardization of market orderliness in the third quarter and spared no effort to expand sales and increase profitability. We actively expanded low-sulphur bunker fuel market and further consolidated our market position. We expanded business scope, promoted branding building and improved the quality and profitability of non-fuel business. Efforts were made to accelerate sales network development, digitisation and transformation to an integrated energy service provider of petrol, gas, hydrogen, power and services. In the first three quarters, domestic sales volume of refined oil products was 121.99 million tonnes, among which the sales volume for the third quarter was 43.53 million tonnes, up by 16.4% quarter-on-quarter. The marketing and distribution segment realised EBIT of RMB 23.154 billion in the first three quarters.
Marketing and Distribution | Unit | Nine-month period ended 30 September | Changes |
| |
2022 | 2021 | (%) |
| ||
Total sales volume of refined oil products | million tonnes | 151.60 | 166.59 | (9.0) |
|
Total domestic sales volume of refined oil products | million tonnes | 121.99 | 127.88 | (4.6) |
|
Retail | million tonnes | 79.09 | 83.70 | (5.5) |
|
Direct sales & Distribution | million tonnes | 42.91 | 44.18 | (2.9) |
|
Annualised average throughput per station | tonnes/station | 3,430 | 3,633 | (5.6) |
|
Note: The total sales volume of refined oil products includes the amount of refined oil marketing and trading sales volume. | |||||
Chemicals: Facing difficulty situation of high cost, high inventory and low margin in domestic chemical industrial chain, the Company closely responded to market change, dynamically optimized the structure of feedstocks and products, optimized utilization rate according to profitability, maintained high utilization rate in profitable facilities, increased the production of EVA and BR and increased production and profits in coal chemical business. We comprehensively promoted the construction of capacity in Zhenhai, Tianjin Nangang, Hainan and Jiujiang. In the first three quarters, ethylene production reached 10 million tonnes, up by 2.6% year-on-year. We made full efforts to ensure sufficient supply to our strategic customers, actively increased export, and vigorously expanded high-end markets. In the first three quarters, the total sales volume of chemical products was 60.40 million tonnes, with a slight decrease year-on-year. Due to the sharp decline of gross margin of chemical products, the chemicals segment realised EBIT of RMB -1.061 billion in the first three quarters.
Chemicals | Unit | Nine-month period ended 30 September | Changes | |
2022 | 2021 | (%) | ||
Ethylene | thousand tonnes | 10,002 | 9,752 | 2.6 |
Synthetic resin | thousand tonnes | 13,790 | 14,002 | (1.5) |
Synthetic rubber | thousand tonnes | 936 | 890 | 5.2 |
Monomers and polymers for synthetic fibre | thousand tonnes | 6,705 | 6,819 | (1.7) |
Synthetic fibre | thousand tonnes | 834 | 1,031 | (19.1) |
Note : Including 100% production of domestic joint ventures.
Capital expenditures:
Capital expenditures in the first three quarters was RMB 104.0 billion, of which RMB 51.6 billion was spent in E&P segment, mainly for the crude oil capacity building in Shunbei and Tahe, natural gas capacity building in Chuanxi and Dongsheng, and the construction of storage and transportation facilities such as the relocation of Dongying crude oil depot and Longkou LNG projects; RMB 13.6 billion was spent in refining segment, mainly for Anqing and Yangzi refining upgrading projects and phase two of Zhenhai refining and chemical projects; RMB 6.5 billion was spent in marketing and distribution segment, mainly for the upgrading of existing stations and construction of integrated energy stations covering gasoline, gas, hydrogen, power and service, as well as logistics facilities; RMB 29.5 billion was spent in chemicals segment, mainly for Hainan and Tianjin Nangang ethylene projects, Jiujiang aromatics project, Zhenhai refining and chemical project phase II and Yizheng PTA project; RMB 2.8 billion was spent in corporate and others, mainly for construction of science and technology research and IT projects.
4. Other significant events
The progress of share repurchase
On 18 May 2022, the Annual General Meeting for 2021, the First A Shareholders Class Meeting for 2022 and the First H Shareholders Class Meeting for 2022 of Sinopec Corp. considered and approved the Resolution to Grant to the Board a Mandate to Buy Back Domestic Shares and/or Overseas-listed Foreign Shares of Sinopec Corp., and authorized the Board (or the director authorised by the Board) to buy back A Shares or H Shares not exceeding 10% of the number of A Shares or H Shares of the Company in issue.
On 26 August 2022, the twelfth meeting of the eighth session of the Board considered and approved the Plan on Repurchasing the Company's Shares by Centralized Bidding Transactions. For details, please refer to the Company's announcements disclosed on the website of the Shanghai Stock Exchange on 29 August 2022 and 20 September 2022.
On 21 September 2022, the Company implemented the repurchase of A shares and H shares. As of 30 September 2022, the Company has repurchased 48 million A shares, accounting for 0.04% of the Company's total issued share capital on 30 September 2022, and the total amount paid was RMB 203,905,495.60 (exclusive of transaction fees). For details, please refer to the Progress Announcement on the Repurchase of A Shares by Centralized Bidding Transactions disclosed by the Company on the website of the Shanghai Stock Exchange on 10 October 2022; the Company has repurchased 54.414 million H Shares, accounting for approximately 0.04% of the Company's total issued share capital on 30 September 2022, and the total amount paid was HK$188,781,540.60 (exclusive of transaction fees).
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 |
Ma Yongsheng |
Chairman |
28 October 2022 |
5 Appendix
5.1 Quarterly financial statements prepared under China Accounting Standards for Business Enterprises (CASs)
Consolidated Balance Sheet
As at 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | At 30 September 2022 | At 31 December 2021 |
Current assets: |
|
|
Cash at bank and on hand | 216,728 | 221,989 |
Financial assets held for trading | 1,013 | - |
Derivative financial assets | 43,768 | 18,371 |
Accounts receivable | 65,796 | 34,861 |
Receivables financing | 5,660 | 5,939 |
Prepayments | 12,162 | 9,267 |
Other receivables | 30,086 | 35,664 |
Inventories | 282,719 | 207,433 |
Other current assets | 19,463 | 24,500 |
Total current assets | 677,395 | 558,024 |
Non-current assets: |
|
|
Long-term equity investments | 220,888 | 209,179 |
Other equity instrument investments | 785 | 767 |
Fixed assets | 602,977 | 598,932 |
Construction in progress | 179,990 | 155,939 |
Right-of-use assets | 180,769 | 184,974 |
Intangible assets | 119,856 | 119,210 |
Goodwill | 8,779 | 8,594 |
Long-term deferred expenses | 10,934 | 10,007 |
Deferred tax assets | 21,478 | 19,389 |
Other non-current assets | 26,668 | 24,240 |
Total non-current assets | 1,373,124 | 1,331,231 |
Total assets | 2,050,519 | 1,889,255 |
Consolidated Balance Sheet (Continued)
Current liabilities: | ||
Short-term loans | 24,610 | 27,366 |
Derivative financial liabilities | 16,454 | 3,223 |
Bills payable | 10,096 | 11,721 |
Accounts payable | 233,680 | 203,919 |
Contract liabilities | 145,290 | 124,622 |
Employee benefits payable | 26,665 | 14,048 |
Taxes payable | 30,214 | 81,267 |
Other payables | 124,461 | 114,701 |
Non-current liabilities due within one year | 69,574 | 28,651 |
Other current liabilities | 103,849 | 31,762 |
Total current liabilities | 784,893 | 641,280 |
Non-current liabilities: |
|
|
Long-term loans | 81,873 | 49,341 |
Debentures payable | 13,062 | 42,649 |
Lease liabilities | 168,718 | 170,233 |
Provisions | 46,475 | 43,525 |
Deferred tax liabilities | 9,767 | 7,910 |
Other non-current liabilities | 20,194 | 18,276 |
Total non-current liabilities | 340,089 | 331,934 |
Total liabilities | 1,124,982 | 973,214 |
Shareholders' equity: |
|
|
Share capital | 121,071 | 121,071 |
Capital reserve | 118,118 | 120,188 |
Less: Treasury shares | 375 | - |
Other comprehensive income | 7,587 | (690) |
Specific reserve | 3,588 | 2,664 |
Surplus reserves | 213,224 | 213,224 |
Retained earnings | 318,060 | 318,645 |
Total equity attributable to shareholders of the Company | 781,273 | 775,102 |
Minority interests | 144,264 | 140,939 |
Total shareholders' equity | 925,537 | 916,041 |
Total liabilities and shareholders' equity | 2,050,519 | 1,889,255 |
Ma Yongsheng Yu Baocai Shou Donghua
Chairman President Chief Financial Officer
(Legal representative)
Balance Sheet
As at 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | At 30 September 2022 | At 31 December 2021 |
Current assets |
|
|
Cash at bank and on hand | 103,962 | 110,691 |
Financial assets held for trading | 2 | - |
Derivative financial assets | 15,368 | 4,503 |
Accounts receivable | 28,510 | 21,146 |
Receivables financing | 1,684 | 227 |
Prepayments | 4,949 | 4,540 |
Other receivables | 38,008 | 46,929 |
Inventories | 82,074 | 63,661 |
Other current assets | 18,573 | 23,408 |
Total current assets | 293,130 | 275,105 |
Non-current assets |
|
|
Long-term equity investments | 376,299 | 360,847 |
Other equity instrument investments | 201 | 201 |
Fixed assets | 278,302 | 284,622 |
Construction in progress | 78,198 | 66,146 |
Right-of-use assets | 92,595 | 105,712 |
Intangible assets | 7,782 | 9,334 |
Long-term deferred expenses | 2,891 | 2,875 |
Deferred tax assets | 7,490 | 8,715 |
Other non-current assets | 42,113 | 34,227 |
Total non-current assets | 885,871 | 872,679 |
Total assets | 1,179,001 | 1,147,784 |
Current liabilities |
|
|
Short-term loans | 1,351 | 16,550 |
Derivative financial liabilities | 12,269 | 1,121 |
Bills payable | 1,440 | 6,058 |
Accounts payable | 86,748 | 85,307 |
Contract liabilities | 9,491 | 7,505 |
Employee benefits payable | 17,143 | 8,398 |
Taxes payable | 17,233 | 46,333 |
Other payables | 218,198 | 211,179 |
Non-current liabilities due within one year | 40,916 | 16,737 |
Other current liabilities | 75,220 | 13,702 |
Total current liabilities | 480,009 | 412,890 |
Balance Sheet (Continued)
Non-current liabilities | ||
Long-term loans | 52,390 | 34,258 |
Debentures payable | 9,536 | 31,522 |
Lease liabilities | 92,452 | 104,426 |
Provisions | 37,679 | 35,271 |
Other non-current liabilities | 2,764 | 3,103 |
Total non-current liabilities | 194,821 | 208,580 |
Total liabilities | 674,830 | 621,470 |
Shareholders' equity |
|
|
Share capital | 121,071 | 121,071 |
Capital reserve | 66,469 | 67,897 |
Less: Treasury shares | 375 | - |
Other comprehensive income | 4,132 | 6,024 |
Specific reserve | 1,997 | 1,658 |
Surplus reserves | 213,224 | 213,224 |
Retained earnings | 97,653 | 116,440 |
Total shareholders' equity | 504,171 | 526,314 |
Total liabilities and shareholders' equity | 1,179,001 | 1,147,784 |
Ma Yongsheng Yu Baocai Shou Donghua
Chairman President Chief Financial Officer
(Legal representative)
Consolidated Income Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | The third quarter of 2022 (July-September) | The third quarter of 2021 (July-September) | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
I. Operating income | 841,196 | 740,918 | 2,453,322 | 2,001,691 |
II. Total Operating costs | 837,227 | 714,314 | 2,374,159 | 1,916,509 |
Including: Operating costs | 735,800 | 603,238 | 2,066,625 | 1,601,524 |
Taxes and surcharges | 65,817 | 65,952 | 200,226 | 186,852 |
Selling and distribution expenses | 14,654 | 16,616 | 42,784 | 48,347 |
General and administrative expenses | 13,439 | 20,038 | 39,622 | 56,208 |
Research and development expenses | 2,778 | 2,951 | 9,088 | 8,311 |
Financial expenses | 2,604 | 2,352 | 7,941 | 7,254 |
Including: Interest expenses | 4,363 | 3,896 | 12,487 | 11,556 |
Interest income | 1,581 | 1,458 | 4,593 | 4,121 |
Exploration expenses, including dry holes | 2,135 | 3,167 | 7,873 | 8,013 |
Add: Other income | 3,727 | 427 | 5,848 | 1,671 |
Investment income | 4,296 | 4,630 | (6,011) | 9,520 |
Including: Income from investment in associates and joint ventures | 3,950 | 5,903 | 11,277 | 17,036 |
Gains from changes in fair value | 3,323 | (1,228) | 1,765 | (1,112) |
Credit impairment reversals/ (losses) | 67 | (195) | 139 | (140) |
Impairment losses | (920) | (110) | (2,376) | (1,036) |
Asset disposal gains | 114 | 152 | 249 | 433 |
III. Operating profit | 14,576 | 30,280 | 78,777 | 94,518 |
Add: Non-operating income | 822 | 500 | 1,677 | 1,196 |
Less: Non-operating expenses | 743 | 670 | 1,822 | 1,751 |
IV. Profit before taxation | 14,655 | 30,110 | 78,632 | 93,963 |
Less: Income tax expense | 1,261 | 5,979 | 15,722 | 21,031 |
V. Net profit | 13,394 | 24,131 | 62,910 | 72,932 |
Including: net (loss) /profit of acquiree before business combination under common control | - | (62) | - | 211 |
Classification by going concern: |
|
|
|
|
(i) Continuous operating net profit | 13,394 | 24,131 | 62,910 | 72,932 |
(ii) Termination of net profit | - | - | - | - |
Consolidated Income Statement (Continued) | ||||
Classification by ownership: |
|
|
|
|
(i) Equity shareholders of the Company | 13,130 | 20,603 | 56,660 | 60,029 |
(ii) Minority interests | 264 | 3,528 | 6,250 | 12,903 |
VI. Other comprehensive income | 1,628 | 3,355 | 18,335 | 11,463 |
Items that may not be reclassified subsequently to profit or loss: | (2) | 1 | (19) | 9 |
Changes in fair value of other equity instrument investments | (2) | 1 | (19) | 9 |
Items that may be reclassified subsequently to profit or loss: | 1,630 | 3,354 | 18,354 | 11,454 |
Other comprehensive income that can be converted into profit or loss under the equity method | (1,617) | 87 | 1,780 | 208 |
Cost of hedging reserve | 506 | (20) | (338) | (60) |
Cash flow hedges | (2,483) | 3,066 | 7,775 | 11,706 |
Foreign currency translation differences | 5,224 | 221 | 9,137 | (400) |
VII. Total comprehensive income | 15,022 | 27,486 | 81,245 | 84,395 |
Equity shareholders of the Company | 13,807 | 24,032 | 73,370 | 71,442 |
Minority interests | 1,215 | 3,454 | 7,875 | 12,953 |
VIII. Earnings per share |
|
|
|
|
(i) Basic earnings per share (RMB/Share) | 0.108 | 0.170 | 0.468 | 0.496 |
(ii) Diluted earnings per share (RMB/Share) | 0.108 | 0.170 | 0.468 | 0.496 |
Ma Yongsheng Yu Baocai Shou Donghua
Chairman President Chief Financial Officer
(Legal representative)
Income Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | The third quarter of 2022 (July-September) | The third quarter of 2021 (July-September) | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
I. Operating income | 329,242 | 265,651 | 979,672 | 734,773 |
Less: Operating costs | 271,636 | 203,170 | 792,959 | 566,597 |
Taxes and surcharges | 41,749 | 39,146 | 128,206 | 111,871 |
Selling and distribution expenses | 383 | 884 | 1,598 | 2,750 |
General and administrative expenses | 5,585 | 9,353 | 17,250 | 25,739 |
Research and development expenses | 1,467 | 2,637 | 7,310 | 7,599 |
Financial expenses | 2,731 | 2,845 | 7,726 | 8,227 |
Including: Interest expenses | 3,466 | 2,228 | 10,259 | 6,421 |
Interest income | 878 | 662 | 2,614 | 1,822 |
Exploration expenses, including dry holes | 1,924 | 2,847 | 6,718 | 7,029 |
Add: Other income | 3,209 | 201 | 4,654 | 944 |
Investment income | 6,366 | 12,337 | 23,666 | 22,939 |
Including: Income from investment in associates and joint ventures | 942 | 1,979 | 3,956 | 6,345 |
Gains from changes in fair value | (513) | (243) | (272) | (11) |
Credit impairment reversals | 3 | 6 | 2 | 8 |
Impairment losses | 10 | 1 | (726) | (752) |
Asset disposal gains | 3 | 9 | 124 | 6 |
II. Operating profit | 12,845 | 17,080 | 45,353 | 28,095 |
Add: Non-operating income | 492 | (7) | 673 | 196 |
Less: Non-operating expenses | 358 | 289 | 1,029 | 808 |
III. Profit before taxation | 12,979 | 16,784 | 44,997 | 27,483 |
Less: Income tax expense | 2,093 | 1,381 | 6,608 | 4,194 |
IV. Net profit | 10,886 | 15,403 | 38,389 | 23,289 |
(i) Continuous operating net profit | 10,886 | 15,403 | 38,389 | 23,289 |
(ii) Termination of net profit | - | - | - | - |
Income Statement (continued)
V. Other comprehensive income | (13) | 4,444 | 4,743 | 10,398 |
Items that may not be reclassified subsequently to profit or loss: | - | - | (5) | - |
Changes in fair value of other equity instrument investments | - | - | (5) | - |
Items that may be reclassified subsequently to profit or loss: | (13) | 4,444 | 4,748 | 10,398 |
Other comprehensive income that can be converted into profit or loss under the equity method | (14) | 90 | 125 | 108 |
Cash flow hedges | 1 | 4,354 | 4,623 | 10,290 |
VI. Total comprehensive income | 10,873 | 19,847 | 43,132 | 33,687 |
Ma Yongsheng Yu Baocai Shou Donghua
Chairman President Chief Financial Officer
(Legal representative)
Consolidated Cash Flow Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
I. Cash flows from operating activities: |
|
|
Cash received from sale of goods and rendering of services | 2,627,885 | 2,112,459 |
Refund of taxes and levies | 8,401 | 934 |
Other cash received relating to operating activities | 211,117 | 109,232 |
Sub-total of cash inflows | 2,847,403 | 2,222,625 |
Cash paid for goods and services | (2,180,888) | (1,650,303) |
Cash paid to and for employees | (61,586) | (57,226) |
Payments of taxes and levies | (298,618) | (276,284) |
Other cash paid relating to operating activities | (247,067) | (122,068) |
Sub-total of cash outflows | (2,788,159) | (2,105,881) |
Net cash flow from operating activities | 59,244 | 116,744 |
II. Cash flows from investing activities: |
| |
Cash received from disposal of investments | 517 | 6,614 |
Cash received from returns on investments | 8,718 | 6,461 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 218 | 919 |
Net cash received from disposal of subsidiaries and other business entities | 1 | 4,764 |
Other cash received relating to investing activities | 52,283 | 26,431 |
Sub-total of cash inflows | 61,737 | 45,189 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (94,485) | (88,602) |
Cash paid for acquisition of investments | (6,350) | (18,595) |
Cash paid for acquisition of subsidiaries and other business units | (7,641) | (1,114) |
Other cash paid relating to investing activities | (23,172) | (36,949) |
Sub-total of cash outflows | (131,648) | (145,260) |
Net cash flow from investing activities | (69,911) | (100,071) |
III. Cash flows from financing activities: |
|
|
Cash received from capital contributions | 1,935 | 604 |
Including: Cash received from minority shareholders' capital contributions to subsidiaries | 1,935 | 604 |
Consolidated Cash Flow Statement (Continued) | ||
Cash received from borrowings | 432,081 | 298,393 |
Other cash received relating to financing activities | 1,347 | 115 |
Sub-total of cash inflows | 435,363 | 299,112 |
Cash repayments of borrowings | (332,437) | (252,759) |
Cash paid for dividends, profits distribution or interest | (65,759) | (44,820) |
Including: Subsidiaries' cash payments for distribution of dividends or profits to minority shareholders | (4,360) | (5,741) |
Other cash paid relating to financing activities | (13,290) | (14,762) |
Sub-total of cash outflows | (411,486) | (312,341) |
Net cash flow from financing activities | 23,877 | (13,229) |
IV. Effects of changes in foreign exchange rate | 4,798 | (177) |
V. Net increase in cash and cash equivalents | 18,008 | 3,267 |
Add: Initial balance of cash and cash equivalents | 108,590 | 87,559 |
VI. Ending balance of cash and cash equivalents | 126,598 | 90,826 |
Ma Yongsheng Yu Baocai Shou Donghua
Chairman President Chief Financial Officer
(Legal representative)
Cash Flow Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
I. Cash flows from operating activities: |
|
|
Cash received from sale of goods and rendering of services | 1,100,876 | 805,374 |
Refund of taxes and levies | 5,731 | 602 |
Other cash received relating to operating activities | 13,893 | 8,306 |
Sub-total of cash inflows | 1,120,500 | 814,282 |
Cash paid for goods and services | (837,202) | (582,164) |
Cash paid to and for employees | (31,695) | (29,678) |
Payments of taxes and levies | (175,552) | (154,927) |
Other cash paid relating to operating activities | (53,355) | (14,208) |
Sub-total of cash outflows | (1,097,804) | (780,977) |
Net cash flow from operating activities | 22,696 | 33,305 |
II. Cash flows from investing activities: |
|
|
Cash received from disposal of investments | 5,038 | 16,642 |
Cash received from returns on investments | 23,123 | 17,791 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 45 | 56 |
Other cash received relating to investing activities | 146,656 | 93,230 |
Sub-total of cash inflows | 174,862 | 127,719 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (42,868) | (38,050) |
Cash paid for acquisition of investments | (20,452) | (37,610) |
Cash paid for acquisition of subsidiaries and other business units | (4,221) | (964) |
Other cash paid relating to investing activities | (136,949) | (93,843) |
Sub-total of cash outflows | (204,490) | (170,467) |
Net cash flow from investing activities | (29,628) | (42,748) |
III. Cash flows from financing activities: |
|
|
Cash received from borrowings | 187,385 | 151,145 |
Other cash received relating to financing activities | 294,614 | 220,822 |
Sub-total of cash inflows | 481,999 | 371,967 |
Cash repayments of borrowings | (121,305) | (121,860) |
Cash paid for dividends or interest | (63,082) | (41,086) |
Other cash paid relating to financing activities | (288,135) | (206,415) |
Sub-total of cash outflows | (472,522) | (369,361) |
Net cash flow from financing activities | 9,477 | 2,606 |
Cash Flow Statement (Continued)
IV. Effects of changes in foreign exchange rate | (8) | - |
V. Net increase/ (decrease) in cash and cash equivalents | 2,537 | (6,837) |
AddInitial balance of cash and cash equivalents | 34,575 | 28,081 |
VI. Ending balance of cash and cash equivalents | 37,112 | 21,244 |
Ma Yongsheng Yu Baocai Shou Donghua
Chairman President Chief Financial Officer
(Legal representative)
Segment Reporting
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Income from principal operations |
|
|
Exploration and production |
|
|
External sales | 138,870 | 104,139 |
Inter-segment sales | 92,164 | 61,683 |
Subtotal | 231,034 | 165,822 |
Refining |
|
|
External sales | 148,241 | 122,238 |
Inter-segment sales | 1,028,879 | 862,823 |
Subtotal | 1,177,120 | 985,061 |
Marketing and distribution |
|
|
External sales | 1,227,731 | 977,324 |
Inter-segment sales | 9,886 | 4,745 |
Subtotal | 1,237,617 | 982,069 |
Chemicals |
|
|
External sales | 342,259 | 306,570 |
Inter-segment sales | 60,194 | 48,973 |
Subtotal | 402,453 | 355,543 |
Corporate and others |
|
|
External sales | 550,609 | 446,160 |
Inter-segment sales | 775,647 | 527,164 |
Subtotal | 1,326,256 | 973,324 |
Elimination of inter-segment sales | (1,966,770) | (1,505,388) |
Consolidated income from principal operations | 2,407,710 | 1,956,431 |
Income from other operations |
|
|
Exploration and production | 4,465 | 5,011 |
Refining | 2,874 | 3,723 |
Marketing and distribution | 28,952 | 27,216 |
Chemicals | 7,496 | 7,754 |
Corporate and others | 1,825 | 1,556 |
Consolidated income from other operations | 45,612 | 45,260 |
Consolidated operating income | 2,453,322 | 2,001,691 |
Segment Reporting (Continued)
Operating profit |
|
|
By segment |
|
|
Exploration and production | 39,165 | 7,673 |
Refining | 20,023 | 53,310 |
Marketing and distribution | 21,759 | 22,416 |
Chemicals | (4,502) | 15,087 |
Corporate and others | 15,632 | 4,609 |
Elimination | (7,210) | (11,835) |
Total segment operating profit | 84,867 | 91,260 |
Investment income |
|
|
Exploration and production | 2,848 | 2,698 |
Refining | (74) | 785 |
Marketing and distribution | 494 | 1,626 |
Chemicals | 2,986 | 7,500 |
Corporate and others | (12,265) | (3,089) |
Total segment investment (loss) /income | (6,011) | 9,520 |
Financial expenses | (7,941) | (7,254) |
Gains/ (losses) from changes in fair value | 1,765 | (1,112) |
Asset disposal gains | 249 | 433 |
Other income | 5,848 | 1,671 |
Operating profit | 78,777 | 94,518 |
Add: Non-operating income | 1,677 | 1,196 |
Less: Non-operating expenses | 1,822 | 1,751 |
Profit before taxation | 78,632 | 93,963 |
5.2 Quarterly financial statements prepared under International Financial Reporting Standards (IFRS)
Consolidated Income Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Current Amount (July-September) | Amount of the previous period (July-September) | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Revenue |
|
|
|
|
Revenue from primary business | 825,474 | 724,908 | 2,407,710 | 1,956,431 |
Other operating revenues | 15,722 | 16,010 | 45,612 | 45,260 |
Subtotal | 841,196 | 740,918 | 2,453,322 | 2,001,691 |
Operating expenses |
|
|
|
|
Purchased crude oil, products and operating supplies and expenses | (700,430) | (576,176) | (1,962,613) | (1,521,731) |
Selling, general and administrative expenses | (13,965) | (13,383) | (40,762) | (39,193) |
Depreciation, depletion and amortisation | (27,911) | (28,282) | (81,549) | (82,748) |
Exploration expenses, including dry holes | (2,135) | (3,167) | (7,873) | (8,013) |
Personnel expenses | (25,264) | (24,937) | (74,487) | (70,132) |
Taxes other than income tax | (65,817) | (65,952) | (200,226) | (186,852) |
Impairment reversals/ (losses) on trade and other receivables | 67 | (195) | 139 | (140) |
Other operating income/ (expense), net | 7,221 | (2,287) | (10,065) | (7,857) |
Total operating expenses | (828,234) | (714,379) | (2,377,436) | (1,916,666) |
Operating profit | 12,962 | 26,539 | 75,886 | 85,025 |
Finance costs |
|
|
|
|
Interest expense | (4,363) | (3,896) | (12,487) | (11,556) |
Interest income | 1,581 | 1,458 | 4,593 | 4,121 |
Foreign currency exchange gains/ (losses), net | 178 | 86 | (47) | 181 |
Net finance costs | (2,604) | (2,352) | (7,941) | (7,254) |
Investment income | 74 | 79 | 200 | 193 |
Share of profits less losses from associates and joint ventures | 3,950 | 5,903 | 11,277 | 17,036 |
Profit before taxation | 14,382 | 30,169 | 79,422 | 95,000 |
Income tax expense | (1,261) | (5,979) | (15,722) | (21,031) |
Profit for the period | 13,121 | 24,190 | 63,700 | 73,969 |
Attributable to |
|
|
|
|
Owners of the Company | 12,833 | 20,665 | 57,284 | 60,892 |
Non-controlling interests | 288 | 3,525 | 6,416 | 13,077 |
Profit for the period | 13,121 | 24,190 | 63,700 | 73,969 |
Earnings per share |
|
|
|
|
Basic earnings per share (RMB) | 0.106 | 0.171 | 0.473 | 0.503 |
Diluted earnings per share (RMB) | 0.106 | 0.171 | 0.473 | 0.503 |
Consolidated Statement of Comprehensive Income
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Current Amount (July-September) | Amount of the previous period (July-September) | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Profit for the period | 13,121 | 24,190 | 63,700 | 73,969 |
Other comprehensive income: | 1,628 | 3,355 | 18,335 | 11,463 |
Items that may not be reclassified subsequently to profit or loss: | ||||
Equity investments at fair value through other comprehensive income | (2) | 1 | (19) | 9 |
Items that may be reclassified subsequently to profit or loss: | ||||
Share of other comprehensive income of associates and joint ventures | (1,617) | 87 | 1,780 | 208 |
Cash flow hedges | (2,483) | 3,066 | 7,775 | 11,706 |
Cost of hedging reserve | 506 | (20) | (338) | (60) |
Foreign currency translation differences | 5,224 | 221 | 9,137 | (400) |
Total comprehensive income for the period | 14,749 | 27,545 | 82,035 | 85,432 |
Attributable to: | ||||
Shareholders of the Company | 13,510 | 24,091 | 73,994 | 72,302 |
Non-controlling interests | 1,239 | 3,454 | 8,041 | 13,130 |
Consolidated Balance Sheet
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | At 30 September 2022 | At 31 December 2021 |
Non-current assets |
|
|
Property, plant and equipment, net | 602,881 | 598,925 |
Construction in progress | 179,990 | 155,939 |
Right-of-use assets | 266,013 | 268,408 |
Goodwill | 8,779 | 8,594 |
Interest in associates | 160,240 | 148,729 |
Interest in joint ventures | 60,648 | 60,450 |
Financial assets at fair value through othercomprehensive income | 785 | 767 |
Deferred tax assets | 21,478 | 19,389 |
Long-term prepayments and other non-current assets | 72,310 | 70,030 |
Total non-current assets | 1,373,124 | 1,331,231 |
Current assets: | ||
Cash and cash equivalents | 126,598 | 108,590 |
Time deposits with financial institutions | 90,130 | 113,399 |
Financial assets at fair value through profit and loss | 1,013 | - |
Derivatives financial assets | 43,768 | 18,371 |
Trade accounts receivable and bills receivable | 65,796 | 34,861 |
Financial assets at fair value through othercomprehensive income | 5,660 | 5,939 |
Inventories | 282,719 | 207,433 |
Prepaid expenses and other current assets | 61,711 | 69,431 |
Total current assets | 677,395 | 558,024 |
Current liabilities | ||
Short-term debts | 128,556 | 35,252 |
Loans from Sinopec Group Company and fellowsubsidiaries | 6,454 | 2,873 |
Lease liabilities | 16,678 | 15,173 |
Derivatives financial liabilities | 16,454 | 3,223 |
Trade accounts payable and bills payable | 243,776 | 215,640 |
Contract liabilities | 145,290 | 124,622 |
Other payables | 225,242 | 239,688 |
Income tax payable | 2,443 | 4,809 |
Total current liabilities | 784,893 | 641,280 |
Consolidated Balance Sheet (Continued)
Net current liabilities | 107,498 | 83,256 |
Total assets less current liabilities | 1,265,626 | 1,247,975 |
Non-current liabilities | ||
Long-term debts | 79,789 | 78,300 |
Loans from Sinopec Group Company and fellow subsidiaries | 15,146 | 13,690 |
Lease liabilities | 168,718 | 170,233 |
Deferred tax liabilities | 9,767 | 7,910 |
Provisions | 46,475 | 43,525 |
Other non-current liabilities | 21,117 | 19,243 |
Total non-current liabilities | 341,012 | 332,901 |
Total net assets | 924,614 | 915,074 |
Equity | ||
Share capital | 121,071 | 121,071 |
Reserves | 659,323 | 653,111 |
Total equity attributable to shareholders of the Company | 780,394 | 774,182 |
Non-controlling interests | 144,220 | 140,892 |
Total equity | 924,614 | 915,074 |
Consolidated Cash Flow Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Net cash generated from operating activities(a) | 59,244 | 116,744 |
Investing activities |
|
|
Capital expenditure | (82,142) | (78,185) |
Exploratory wells expenditure | (12,343) | (10,417) |
Purchase of investments | (5,341) | (10,363) |
Payment for financial assets at fair value through profit or loss | (1,009) | (8,232) |
Proceeds from settlement of financial assets at fair value through profit or loss | 6 | 4,739 |
Payment for acquisition of subsidiary, net of cash acquired | (7,641) | (1,114) |
Proceeds from disposal of investments | 512 | 6,639 |
Proceeds from disposal of property, plant, equipment and other non-current assets | 218 | 919 |
Increase in time deposits with maturities over three months | (22,071) | (32,711) |
Decrease in time deposits with maturities over three months | 47,491 | 22,698 |
Interest received | 3,489 | 2,407 |
Investment and dividend income received | 8,718 | 6,461 |
Proceeds from/ (payments of) other investing activities | 202 | (2,912) |
Net cash used in investing activities | (69,911) | (100,071) |
Financing activities |
|
|
Proceeds from bank and other loans | 432,081 | 298,393 |
Repayments of bank and other loans | (332,437) | (252,759) |
Contributions to subsidiaries from non-controlling interests | 1,935 | 604 |
Dividends paid by the Company | (56,903) | (35,111) |
Distributions by subsidiaries to non-controlling interests | (4,360) | (5,741) |
Interest paid | (4,496) | (3,968) |
Payments made to acquire non-controlling interests | - | (1,410) |
Repayments of lease liabilities | (10,877) | (12,778) |
Proceeds from other financing activities | 1,347 | 115 |
Repayments of other financing activities | (2,413) | (574) |
Net cash generated from/ (used in) financing activities | 23,877 | (13,229) |
Net increase in cash and cash equivalents | 13,210 | 3,444 |
Cash and cash equivalents at 1 January | 108,590 | 87,559 |
Effect of foreign currency exchange rate changes | 4,798 | (177) |
Cash and cash equivalents at 30 September | 126,598 | 90,826 |
Note to consolidated statement of Cash Flows
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
(a) Reconciliation of profit before taxation to net cash generated from operating activities
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Operating activities |
|
|
Profit before taxation | 79,422 | 95,000 |
Adjustments for: |
|
|
Depreciation, depletion and amortisation | 81,549 | 82,748 |
Dry hole costs written off | 5,556 | 5,427 |
Share of profits less losses from associates and joint ventures | (11,277) | (17,036) |
Investment income | (200) | (193) |
Interest income | (4,593) | (4,121) |
Interest expense | 12,487 | 11,556 |
(Gain) /loss on foreign currency exchange rate changes and derivative financial instruments | (451) | 1,203 |
Loss on disposal of property, plant, equipment and other non-current assets, net | 205 | 125 |
Impairment losses on assets | 2,376 | 1,036 |
Impairment (reversals) /losses on trade and other receivables | (139) | 140 |
Operating profit before change of operating capital | 164,935 | 175,885 |
Accounts receivable and other current assets | (26,933) | (62,740) |
Inventories | (77,664) | (46,565) |
Accounts payable and other current liabilities | 13,041 | 70,880 |
Subtotal | 73,379 | 137,460 |
Income tax paid | (14,135) | (20,716) |
Net cash generated from operating activities | 59,244 | 116,744 |
Segment Reporting
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Revenue from primary business |
|
|
Exploration and production |
|
|
External sales | 138,870 | 104,139 |
Inter-segment sales | 92,164 | 61,683 |
Subtotal | 231,034 | 165,822 |
Refining |
|
|
External sales | 148,241 | 122,238 |
Inter-segment sales | 1,028,879 | 862,823 |
Subtotal | 1,177,120 | 985,061 |
Marketing and distribution |
|
|
External sales | 1,227,731 | 977,324 |
Inter-segment sales | 9,886 | 4,745 |
Subtotal | 1,237,617 | 982,069 |
Chemicals |
|
|
External sales | 342,259 | 306,570 |
Inter-segment sales | 60,194 | 48,973 |
Subtotal | 402,453 | 355,543 |
Corporate and others |
|
|
External sales | 550,609 | 446,160 |
Inter-segment sales | 775,647 | 527,164 |
Subtotal | 1,326,256 | 973,324 |
Elimination of inter-segment sales | (1,966,770) | (1,505,388) |
Revenue from primary business | 2,407,710 | 1,956,431 |
Other operating revenues |
|
|
Exploration and production | 4,465 | 5,011 |
Refining | 2,874 | 3,723 |
Marketing and distribution | 28,952 | 27,216 |
Chemicals | 7,496 | 7,754 |
Corporate and others | 1,825 | 1,556 |
Other operating revenues | 45,612 | 45,260 |
Revenue | 2,453,322 | 2,001,691 |
Segment Reporting (Continued)
Result |
|
|
Operating profit/ (loss) |
|
|
By segment |
|
|
Exploration and production | 43,591 | 8,708 |
Refining | 20,849 | 53,567 |
Marketing and distribution | 21,120 | 21,628 |
Chemicals | (4,037) | 15,757 |
Corporate and others | 1,573 | (2,800) |
Elimination | (7,210) | (11,835) |
Total segment operating profit | 75,886 | 85,025 |
Share of profits/ (losses) from associates and joint ventures |
|
|
Exploration and production | 2,654 | 2,134 |
Refining | (245) | 728 |
Marketing and distribution | 1,994 | 2,678 |
Chemicals | 3,131 | 7,556 |
Corporate and others | 3,743 | 3,940 |
Aggregate share of profits from associates and joint ventures | 11,277 | 17,036 |
Investment income |
|
|
Exploration and production | - | 62 |
Refining | 41 | (1) |
Marketing and distribution | 40 | 10 |
Chemicals | (155) | (56) |
Corporate and others | 274 | 178 |
Aggregate investment income | 200 | 193 |
Net finance costs | (7,941) | (7,254) |
Profit before taxation | 79,422 | 95,000 |
5.3 Differences between consolidated financial statements prepared in accordance with the accounting policies complying 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 | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Net profit under CASs | 62,910 | 72,932 |
Adjustments: | ||
Government grants(i) | 44 | 37 |
Safety production fund(ii) | 1,088 | 1,000 |
Other | (342) | - |
Profit for the period under IFRS | 63,700 | 73,969 |
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 30 September 2022 | As of 31 December 2021 |
Shareholders' equity under CASs | 925,537 | 916,041 |
Adjustments: | ||
Government grants(i) | (923) | (967) |
Total equity under IFRS | 924,614 | 915,074 |
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