30 Oct 2019 09:16
China Petroleum & Chemical Corporation
The Third Quarterly Report for 2019
30 October 2019
Beijing, China
1 Important notice
1.1 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 that there are no false representations, misleading statements or material omissions contained in this report and severally and jointly accept full responsibility for the authenticity, accuracy and completeness of the information contained in this report.
1.2 The third quarterly report for 2019 was approved at the 8th meeting of the Seventh Session of the Board of Directors of Sinopec Corp. All directors attended this meeting.
1.3 Mr. Dai Houliang, Chairman, Mr. Ma Yongsheng, President, Mr. Wang Dehua, Chief Financial Officer and Head of the Corporate Accounting Department of Sinopec Corp. warrant the authenticity, accuracy and completeness of the financial statements contained in this quarterly report.
1.4 The financial statements in this quarterly report were not audited.
2 Basic information of Sinopec Corp.
2.1 Principal financial data and indicators
2.1.1 Principal financial data and indicators prepared in accordance with China Accounting Standards for Business Enterprises (CASs)
RMB million |
| |||||
Items | As of 30 September 2019 | As of 31 December 2018 | Changes from the end of the preceding year to the end of the reporting period (%) |
| ||
Total assets | 1,826,336 | 1,592,308 | 14.7 |
| ||
Total equity attributable to equity shareholders of the Company | 725,893 | 718,355 | 1.1 |
| ||
RMB million |
| |||||
Items | Nine-month period ended 30 September | Changes over the same period of the preceding year (%) |
| |||
2019 | 2018 |
| ||||
Net cash flow from operating activities | 81,398 | 137,919 | (41.0) |
| ||
|
| |||||
Operating income | 2,233,305 | 2,072,970 | 7.7 |
| ||
Net profit attributable to equity shareholders of the Company | 43,281 | 59,980 | (27.8) |
| ||
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses | 41,546 | 57,150 | (27.3) |
| ||
Weighted average return on net assets (%) | 5.93 | 8.28 | (2.35) percentage points |
| ||
Basic earnings per share (RMB) | 0.357 | 0.495 | (27.8) |
| ||
Diluted earnings per share (RMB) | 0.357 | 0.495 | (27.8) |
| ||
RMB million |
| |||||
Extraordinary items | Third Quarter 2019 RMB million | Nine Months 2019 RMB million | ||||
Net loss/(gain) on disposal of non-current assets | (5) | 169 | ||||
Donations | 63 | 79 | ||||
Government grants | (1,244) | (3,152) | ||||
Gains on holding and disposal of various investments | (144) | (169) | ||||
Other extraordinary income and expenses, net | 221 | 608 | ||||
Subtotal | (1,109) | (2,465) | ||||
Tax effect | 208 | 625 | ||||
Total | (901) | (1,840) | ||||
Equity shareholders of the Company | (848) | (1,735) | ||||
Minority interests | (53) | (105) | ||||
2.1.2 Principal financial data and indicators prepared in accordance with International Financial Reporting Standards (IFRS)
RMB million |
| |||
Items | As of 30 September 2019 | As of 31 December 2018 | Changes from the end of the preceding year to the end of the reporting period (%) |
|
Total assets | 1,826,336 | 1,592,308 | 14.7 |
|
Total equity attributable to shareholders of the Company | 724,863 | 717,284 | 1.1 |
|
RMB million |
| |||
Items | Nine-month period ended 30 September | Changes over the same period of the preceding year (%) | ||
2019 | 2018 | |||
Net cash generated from operating activities | 81,398 | 137,919 | (41.0) | |
| ||||
Operating profit | 68,340 | 85,865 | (20.4) | |
Net profit attributable to shareholders of the Company | 44,226 | 60,155 | (26.5) | |
Basic earnings per share (RMB) | 0.365 | 0.497 | (26.5) | |
Diluted earnings per share (RMB) | 0.365 | 0.497 | (26.5) | |
Return on net assets (%) | 6.10 | 8.34 | (2.24) percentage points |
2.2 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 502,791, including 496,981 holders of domestic A shares and 5,810 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 | 25,387,693,005 | 20.97 | Unknown | H share |
中国证券金融股份有限公司 | 2,609,312,057 | 2.16 | 0 | A share |
国新投资有限公司 | 1,252,427,354 | 1.03 | 0 | A share |
北京诚通金控投资有限公司 | 1,038,657,802 | 0.86 | 0 | A share |
香港中央结算有限公司 | 571,203,332 | 0.47 | 0 | A share |
中央汇金资产管理有限责任公司 | 322,037,900 | 0.27 | 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 | 261,330,179 | 0.22 | 0 | A share |
中国人寿保险股份有限公司-分红-个人分红-005L-FH002沪 | 220,571,695 | 0.18 | 0 | A share |
国泰君安证券股份有限公司 | 114,766,313 | 0.09 | 0 | A share |
Note Sinopec Century Bright Capital Investment Limited, overseas wholly-owned subsidiary of China Petrochemical Corporation, holds 553,150,000 H shares, which is 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:
Apart from中国人寿保险股份有限公司-传统-普通保险产品-005L-CT001沪 and 中国人寿保险股份有限公司-分红-个人分红-005L-FH002沪 which were both administrated by 中国人寿保险股份有限公司, Sinopec Corp. is not aware of any connected relationship or acting in concert among or between the above-mentioned shareholders.
2.3 Review of operating results
In the first three quarters of 2019, growth of the global economy slowed down, while China's economy maintained stable growth with GDP up by 6.2% year on year. International crude oil prices fluctuated with an upward trend first, and then slid gradually. Prices for domestic refined oil products were adjusted timely with the international crude oil prices. The domestic demand for natural gas kept a high growth rate, up by 9.8% year on year. While the domestic demand for refined oil products maintained steady growth, the market witnessed strong competition with abundant supply. The domestic demand for major chemicals kept fairly rapid growth.
The Company stays committed to the overall guidelines of seeking steady progress, pursues new concepts of development, and follows specialised development, market-oriented operation, internationalisation and overall coordination to fully optimise operations, expand markets, reduce costs, control risks and realize growth, and promotes all aspects of work in an integrated manner.
In accordance with CASs, net profit attributable to equity shareholders of the Company was RMB 43.281 billion, down by 27.8% compared with the same period of last year. In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB 44.226 billion, down by 26.5% compared with the same period of last year.
Exploration and Production: The Company fully implemented the action plan of making greater efforts in oil and gas exploration and production. Good results were obtained through efforts in maintaining oil production, increasing gas output and reducing cost. In exploration, we reinforced preliminary exploration in new areas and strengthened integrated detailed evaluation in mature fields, which led to new oil and gas discoveries in Jiyang Depression, Sichuan Basin and Ordos Basin, etc. In development, we strengthened the capacity building of profitable oil production. The Company constantly pushed forward capacity buildings in Fuling, Weirong, West Sichuan and Dongsheng gas fields. We accelerated an integrated system of natural gas production, supply, storage and marketing and promoted a coordinated growth along the value chain. In the first three quarters, oil and gas production of the Company was 341.74 million barrels of oil equivalent, increased by 1.9%, of which domestic crude oil production kept stable, while natural gas grew by 8.4%. The Exploration and Production Segment realised an operating profit of RMB 8.718 billion, representing an increase of RMB 9.799 billion compared with the same period of last year.
Exploration and Production | Unit | Nine-month period ended 30 September | Changes | |
2019 | 2018 | (%) | ||
Oil and gas production | million boe | 341.74 | 335.34 | 1.9 |
Crude oil production | million barrels | 212.78 | 216.32 | (1.6) |
China | million barrels | 186.69 | 186.50 | 0.1 |
Overseas | million barrels | 26.09 | 29.82 | (12.5) |
Natural gas production | billion cubic feet | 773.41 | 713.78 | 8.4 |
Realised crude oil price | USD/barrel | 58.82 | 65.12 | (9.7) |
Realised natural gas price | USD/thousand cubic feet | 6.19 | 5.91 | 4.7 |
Conversion: For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil,
1 tonne = 7.21 barrels. For production of natural gas, 1 cubic meter = 35.31 cubic feet.
Refining: With the market-oriented approach, we brought the advantage of integrated operations into full play, and continued to optimise product mix. We moderately increased the export of refined oil products and expanded the market of kerosene to keep a relatively high utilisation rate. New projects and structural adjustment projects were implemented in an orderly manner. We implemented and constantly optimised the quality upgrading plan for new spec bunker fuel to lower the production cost and prepare for market supply. In the first three quarters, refinery throughput increased by 1.9% compared with the same period of last year. Production of refined oil products increased by 2.9%, among which gasoline up by 3.2%, kerosene up by 7.2% compared with the same period of last year. The Refining Segment realised an operating profit of RMB 22.50 billion.
Refining | Unit | Nine-month period ended 30 September | Changes (%) | |
2019 | 2018 | |||
Refinery throughput | million tonnes | 186.26 | 182.74 | 1.9 |
Gasoline, diesel and kerosene production | million tonnes | 119.54 | 116.13 | 2.9 |
Gasoline | million tonnes | 47.20 | 45.74 | 3.2 |
Diesel | million tonnes | 49.01 | 48.62 | 0.8 |
Kerosene | million tonnes | 23.33 | 21.77 | 7.2 |
Light chemical feedstock production | million tonnes | 30.05 | 29.01 | 3.6 |
Light product yield | % | 76.44 | 76.11 | 0.33 percentage points |
Refining yield | % | 94.99 | 94.98 | 0.01 percentage points |
Note : Including 100% production of domestic joint ventures.
Marketing and Distribution: Adhering to the strategy of balancing volume and profit under strong market competition, the Company optimised resources allocation, expanded market, and increased operational profits. We brought our advantages of integrated business and distribution network into full play and expanded total sales volume and retail scale. We further improved our marketing network layout and reinforced existing advantages. We continuously explored overseas market in refined oil products, and expanded the scale of international trade. We accelerated the development and marketing of self-owned brand products and advanced the growth of non-fuel business. In the first three quarters, total sales volume of refined oil products was 192.42 million tonnes, increased by 8.5%, of which total domestic sales volume of refined oil products increased by 3.1%, and retail sales volume increased by 1.1%. The Marketing and Distribution Segment realised an operating profit of RMB 23.245 billion. For the third quarter ended 30 September, it realised an operating profit of RMB 8.536 billion, up by 24.7% on a quarter-on-quarter basis.
Marketing and Distribution | Unit | Nine-month period ended 30 September | Changes (%) | |
2019 | 2018 | |||
Total sales volume of refined oil products | million tonnes | 192.42 | 177.35 | 8.5 |
Total domestic sales volume of refined oil products | million tonnes | 139.25 | 135.02 | 3.1 |
Retail | million tonnes | 91.80 | 90.82 | 1.1 |
Direct sales & Distribution | million tonnes | 47.45 | 44.20 | 7.4 |
Annualised average throughput per station | tonnes/station | 3,991 | 3,953 | 1.0 |
Note: The total sales volume of refined oil products includes the amount of trading volume.
| As of 30 September 2019 | As of 31 December 2018 | Changes from the end of last year to the end of the reporting period (%) |
Total number of Sinopec-branded service stations | 30,676 | 30,661 | 0.05 |
Number of company-operated stations | 30,670 | 30,655 | 0.05 |
Number of convenience stores | 27,343 | 27,259 | 0.31 |
Chemicals: The Company adhered to the development philosophy of "basic plus high-end" and improved effective supply. We constantly fine-tuned chemical feedstock mix to further lower costs. We improved the coordination among production, marketing, research and application to raise the proportion of high-end products. The ratio of new and specialty products of synthetic resin reached 64.7%, the ratio of high-value-added products of synthetic rubber reaching 28.4%, and differential ratio of synthetic fibre reaching 90.1%. We enhanced the dynamic optimisation of plants and product chains, and improved the utilisation and production plan. We actively promoted major projects and accelerated the construction of advanced production capacity. Meanwhile, we further expanded the market and promoted targeted marketing and service. In the first three quarters, ethylene production reached 9.295 million tonnes, up by 5.8% and chemical sales volume was 71.54 million tonnes, up by 10.1% compared with the same period of last year. The Chemicals Segment realised an operating profit of RMB 16.560 billion.
Chemicals | Unit | Nine-month period ended 30 September | Changes (%) | |
2019 | 2018 | |||
Ethylene | thousand tonnes | 9,295 | 8,784 | 5.8 |
Synthetic resin | thousand tonnes | 12,749 | 12,171 | 4.7 |
Monomers and polymers for synthetic fibre | thousand tonnes | 7,511 | 7,100 | 5.8 |
Synthetic fibre | thousand tonnes | 968 | 940 | 3.0 |
Synthetic rubber | thousand tonnes | 794 | 646 | 22.9 |
Note : Including 100% production of domestic joint ventures.
Capital expenditure: In the first three quarters, total capital expenditures were RMB 78.0 billion. Capital expenditures for the exploration and production segment were RMB 34.751 billion, mainly for shale gas capacity building in Fuling and Weirong, natural gas capacity building in Hangjinqi, crude oil capacity building in Shengli and Northwest oilfields, natural gas pipeline and storage as well as overseas projects. Capital expenditures for the refining segment were RMB 19.276 billion, mainly for the Zhongke integrated refining and chemical project, product mix optimisation of Zhenhai, Tianjin, Maoming and Luoyang. Capital expenditures for the marketing and distribution segment were RMB 14.818 billion, mainly for constructing service stations, logistics facilities, non-fuel business and revamping of underground oil tanks. Capital expenditures for the chemicals segment were RMB 8.648 billion, mainly for ethylene projects in Zhongke, Zhenhai and Wuhan, Phase II of Hainan high -efficiency and environmentally-friendly aromatics project. Capital expenditures for corporate and others were RMB 0.507 billion, mainly for R&D facilities and information technology application projects.
3 Significant events
3.1 Significant changes in major items contained in the consolidated financial statements prepared in accordance with CASs and the reasons for such changes.
Items of Consolidated Balance Sheet | As of 30 September 2019 | As of 31 December 2018 | Increase/(Decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Financial assets held for trading | 10,443 | 25,732 | (15,289) | (59.4) | Receipt of the structured deposits at maturity |
Derivative financial assets | 1,632 | 7,887 | (6,255) | (79.3) | Decrease in loss position and increase in profitable position of derivative hedging financial instruments |
Derivative financial liabilities | 4,898 | 13,571 | (8,673) | (63.9) | |
Bills receivable | 12,220 | 7,886 | 4,334 | 55.0 | Increase in sales volume |
Accounts receivable | 76,157 | 56,993 | 19,164 | 33.6 | |
Prepayments | 12,681 | 5,937 | 6,744 | 113.6 | Increase in land bid security due to the enlargement of operation scale |
Long-term deferred expenses | 8,419 | 15,659 | (7,240) | (46.2) | Decrease in long-term deferred expenses under New Leases Standard |
Short-term loans | 63,567 | 44,692 | 18,875 | 42.2 | Increase in low-interest short-term loan |
Bills payable | 11,058 | 6,416 | 4,642 | 72.4 | Increase in bills payable for main projects |
Employee benefits payable | 14,760 | 7,312 | 7,448 | 101.9 | The increased base of social insurance, housing fund and enterprise annuity payment and the increase of employee income payable |
Taxes payable | 33,651 | 87,060 | (53,409) | (61.3) | Due to the time difference of tax payment, part of the unpaid tax from the end of last year had been paid during this reporting period |
Non-current liabilities due within one year | 42,862 | 17,450 | 25,412 | 145.6 | Corporate bond of RMB 9 billion issued in 2010 will be due in May 2020. Non-current liabilities will be due in 2020 under New Leases Standard |
Specific reserve | 2,786 | 1,706 | 1,080 | 63.3 | The provision of safety production fund |
Items of Consolidated Income Statement | Nine-month period ended 30 September | Increase/(Decrease) | Main reasons for changes | ||
2019 | 2018 | Amount | Percentage | ||
RMB Million | RMB Million | RMB Million | (%) | ||
Financial Expense | 7,790 | 632 | 7,158 | 1132.6 | Increase in Financial Expense under New Leases Standard |
(Losses)/gains from changes in fair value | (1,426) | 476 | (1,902) | - | Increase in fair value loss on derivative financial instruments not qualified as hedging |
Impairment losses | (91) | (728) | 637 | - | Decrease in Impairment loss during this reporting period |
Items of consolidated cash flow statement | Nine-month period ended 30 September | Increase/(Decrease) | Main reasons for changes | ||
2019 | 2018 | Amount | Percentage | ||
RMB million | RMB million | RMB million | (%) | ||
Other cash received relating to operational activities | 102,241 | 57,437 | 44,804 | 78.0 | Decrease in Margin deposit in financial derivatives business |
Other cash paid relating to operational activities | 131,492 | 81,761 | 49,731 | 60.8 | Increase in Margin deposit in financial derivatives business |
Cash received from returns on investments | 19,455 | 49,695 | (30,240) | (60.9) | Decrease in recovered value of structured deposits at maturity |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 433 | 8,490 | (8,057) | (94.9) | Net cash received in 2018 was mainly due to subsidiary companies relocation compensation |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 73,910 | 54,464 | 19,446 | 35.7 | Investment cash outflow during this reporting period |
Cash paid for acquisition of investments | 14,296 | 10,551 | 3,745 | 35.5 | Increase in value of structured deposits and investment in Gulei ethylene project |
Net cash paid for the acquisition of subsidiaries and other business entities | - | 3,188 | (3,188) | - | Net cash paid for the acquisition of SECCO in 2018 |
Other cash paid relating to investing activities | 78,561 | 55,593 | 22,968 | 41.3 | Increase in the value of certificate of deposit over three months |
3.2 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
Dai Houliang
30 October, 2019
4 Appendix
4.1 Quarterly financial statements prepared under China Accounting Standards for Business Enterprises (CASs)
Consolidated Balance Sheet | |||
as at 30 September 2019 | |||
Prepared by: China Petroleum & Chemical Corporation |
| ||
Units: million Currency: RMB Type: unaudited | |||
Items | At 30 September 2019 | At 31 December 2018 | |
Current assets: |
|
| |
Cash at bank and on hand | 159,965 | 167,015 | |
Financial assets held for trading | 10,443 | 25,732 | |
Derivative financial assets | 1,632 | 7,887 | |
Bills receivable | 12,220 | 7,886 | |
Accounts receivable | 76,157 | 56,993 | |
Prepayments | 12,681 | 5,937 | |
Other receivables | 29,853 | 25,312 | |
Inventories | 208,740 | 184,584 | |
Other current assets | 23,349 | 22,774 | |
Total current assets | 535,040 | 504,120 | |
Non-current assets: |
|
| |
Long-term equity investments | 149,511 | 145,721 | |
Other equity instrument investments | 1,428 | 1,450 | |
Fixed assets | 599,755 | 617,812 | |
Construction in progress | 161,274 | 136,963 | |
Right-of-use assets | 200,333 | - | |
Intangible assets | 104,315 | 103,855 | |
Goodwill | 8,705 | 8,676 | |
Long-term deferred expenses | 8,419 | 15,659 | |
Deferred tax assets | 19,972 | 21,694 | |
Other non-current assets | 37,584 | 36,358 | |
Total non-current assets | 1,291,296 | 1,088,188 | |
Total assets | 1,826,336 | 1,592,308 | |
Current liability: |
|
| |
Short-term loans | 63,567 | 44,692 | |
Derivative financial liabilties | 4,898 | 13,571 | |
Bills payable | 11,058 | 6,416 | |
Accounts payable | 217,556 | 186,341 | |
Contract liabilities | 135,888 | 124,793 | |
Employee benefits payable | 14,760 | 7,312 | |
Taxes payable | 33,651 | 87,060 | |
Other payables | 73,644 | 77,463 | |
Non-current liabilities due within one year | 42,862 | 17,450 | |
Total current liabilities | 597,884 | 565,098 | |
Non-current liabilities: |
|
| |
Long-term loans | 71,119 | 61,576 | |
Debentures payable | 23,323 | 31,951 | |
Lease liabilities | 180,655 | - | |
Provisions | 44,894 | 42,800 | |
Deferred tax liabilities | 5,900 | 5,948 | |
Other non-current liabilities | 29,672 | 27,276 | |
Total non-current liabilities | 355,563 | 169,551 | |
Total liabilities | 953,447 | 734,649 | |
Shareholders' equity: |
|
| |
Share capital | 121,071 | 121,071 | |
Capital reserve | 122,121 | 119,192 | |
Other comprehensive income | (342) | (6,774) | |
Specific reserve | 2,786 | 1,706 | |
Surplus reserves | 203,678 | 203,678 | |
Retained earnings | 276,579 | 279,482 | |
Total equity attributable to shareholders of the Company | 725,893 | 718,355 | |
Minority interests | 146,996 | 139,304 | |
Total shareholders' equity | 872,889 | 857,659 | |
Total liabilities and shareholders' equity | 1,826,336 | 1,592,308 | |
Dai Houliang Ma Yongsheng |
| Wang Dehua | |
Chairman President Chief Financial Officer
|
| ||
Balance Sheet | ||
as at 30 September 2019 | ||
Prepared by: China Petroleum & Chemical Corporation |
| |
Units: million Currency: RMB Type: unaudited | ||
Items | At 30 September 2019 | At 31 December 2018 |
Current assets: |
|
|
Cash at bank and on hand | 73,526 | 82,879 |
Financial assets held for trading | 8,500 | 22,500 |
Bills receivable | 355 | 156 |
Accounts receivable | 23,928 | 29,989 |
Prepayments | 3,552 | 2,488 |
Other receivables | 67,986 | 57,432 |
Inventories | 50,846 | 45,825 |
Other current assets | 21,866 | 15,835 |
Total current assets | 250,559 | 257,104 |
Non-current assets: |
|
|
Long-term equity investments | 296,498 | 289,207 |
Other equity instrument investments | 395 | 395 |
Fixed assets | 281,776 | 302,082 |
Construction in progress | 57,845 | 51,598 |
Right-of-use assets | 113,875 | - |
Intangible assets | 8,206 | 8,571 |
Long-term deferred expenses | 2,473 | 2,480 |
Deferred tax assets | 9,955 | 11,021 |
Other non-current assets | 3,213 | 9,145 |
Total non-current assets | 774,236 | 674,499 |
Total assets | 1,024,795 | 931,603 |
Current liabilities: |
|
|
Short-term loans | 30,579 | 3,961 |
Derivative financial liabilties | - | 967 |
Bills payable | 3,748 | 2,075 |
Accounts payable | 78,287 | 82,343 |
Contract liabilities | 5,590 | 4,230 |
Employee benefits payable | 8,938 | 4,294 |
Taxes payable | 21,419 | 54,764 |
Other payables | 123,844 | 119,514 |
Non-current liabilities due within one year | 33,698 | 16,729 |
Total current liabilities | 306,103 | 288,877 |
Non-current liabilities: |
|
|
Long-term loans | 45,228 | 48,104 |
Debentures payable | 11,000 | 20,000 |
Lease liabilities | 108,901 | - |
Provisions | 34,418 | 33,094 |
Other non-current liabilities | 4,842 | 4,332 |
Total non-current liabilities | 204,389 | 105,530 |
Total liabilities | 510,492 | 394,407 |
Shareholders' equity: |
|
|
Share capital | 121,071 | 121,071 |
Capital reserve | 68,801 | 68,795 |
Other comprehensive income | 482 | (485) |
Specific reserve | 1,408 | 989 |
Surplus reserves | 203,678 | 203,678 |
Retained earnings | 118,863 | 143,148 |
Total shareholders' equity | 514,303 | 537,196 |
Total liabilities and shareholders' equity | 1,024,795 | 931,603 |
Dai Houliang Ma Yongsheng Wang Dehua | ||
Chairman President Chief Financial Officer
|
Consolidated Income Statement for the nine-month period ended 30 September 2019 |
| ||||
Prepared by: China Petroleum & Chemical Corporation |
| ||||
Units: million Currency: RMB Type: unaudited |
| ||||
Items | Three-month period ended 30 September 2019 | Three-month period ended 30 September 2018 | Nine-month period ended 30 September 2019 | Nine-month period ended 30 September 2018 | |
I. Operating income | 734,309 | 772,718 | 2,233,305 | 2,072,970 | |
II. Total Operating costs | 718,620 | 749,026 | 2,172,237 | 1,988,740 | |
Including: Operating costs | 617,990 | 645,961 | 1,881,083 | 1,696,680 | |
Taxes and surcharges | 61,685 | 64,824 | 181,931 | 183,545 | |
Selling and distribution expenses | 16,021 | 15,057 | 45,761 | 42,718 | |
General and administrative expenses | 16,079 | 18,817 | 43,118 | 52,725 | |
Research and development costs | 1,942 | 1,641 | 5,931 | 5,721 | |
Financial expenses | 2,627 | 369 | 7,790 | 632 | |
Exploration expenses, including dry holes | 2,276 | 2,357 | 6,623 | 6,719 | |
Add: Other income | 1,074 | 1,628 | 2,674 | 3,477 | |
Investment income | 3,701 | 3,819 | 6,475 | 9,703 | |
(Losses)/gains from changes in fair value | (1,120) | 926 | (1,426) | 476 | |
Credit impairment losses | 6 | (14) | (7) | 24 | |
Impairment losses | (9) | (591) | (91) | (728) | |
Asset disposal gains/(losses) | 5 | (143) | (169) | 75 | |
III. Operating profit | 19,346 | 29,317 | 68,524 | 97,257 | |
Add: Non-operating income | 366 | 270 | 1,051 | 900 | |
Less: Non-operating expenses | 476 | 752 | 1,243 | 1,455 | |
IV. Profit before taxation | 19,236 | 28,835 | 68,332 | 96,702 | |
Less: Income tax expense | 3,728 | 6,337 | 13,868 | 20,923 | |
V. Net profit | 15,508 | 22,498 | 54,464 | 75,779 | |
Classification by going concern: |
|
|
|
| |
(i) Continuous operating net profit | 15,508 | 22,498 | 54,464 | 75,779 | |
(ii) Termination of net profit | - | - | - | - | |
Classification by ownership: |
|
|
|
| |
(i)Equity shareholders of the Company | 11,943 | 18,380 | 43,281 | 59,980 | |
(ii) Minority interests | 3,565 | 4,118 | 11,183 | 15,799 | |
VI. Other comprehensive income | 1,663 | 3,619 | 6,231 | 3,877 | |
Items that may not be reclassified subsequently to profit or loss: | (2) | 3 | (22) | (14) | |
Changes in fair value of other equity instrument investments | (2) | 3 | (22) | (14) | |
Items that may be reclassified subsequently to profit or loss: | 1,665 | 3,616 | 6,253 | 3,891 | |
Other comprehensive income that can be converted into profit or loss under the equity method | (98) | (172) | (607) | (285) | |
Cash flow hedges | (248) | 1,092 | 4,543 | 584 | |
Foreign currency translation differences | 2,011 | 2,696 | 2,317 | 3,592 | |
VII. Total comprehensive income | 17,171 | 26,117 | 60,695 | 79,656 | |
Attributable to: |
|
|
|
| |
Equity shareholders of the Company | 12,926 | 21,125 | 48,842 | 62,728 | |
Minority interests | 4,245 | 4,992 | 11,853 | 16,928 | |
VIII. Earnings per share: |
|
|
|
| |
(i) Basic earnings per share (RMB/Share) | 0.099 | 0.151 | 0.357 | 0.495 | |
(ii) Diluted earnings per share (RMB/Share) | 0.099 | 0.151 | 0.357 | 0.495 | |
Dai Houliang Ma Yongsheng Wang Dehua |
| ||||
Chairman President Chief Financial Officer
|
| ||||
Income Statement for the nine-month period ended 30 September 2019 | ||||||
Prepared by: China Petroleum & Chemical Corporation | ||||||
|
| Units: million Currency: RMB Type: unaudited | ||||
Items | Three-month period ended 30 September 2019 | Three-month period ended 30 September 2018 | Nine-month period ended 30 September 2019 | Nine-month period ended 30 September 2018 | ||
I. Operating income | 254,297 | 279,491 | 766,632 | 774,103 | ||
Less: Operating costs | 201,259 | 220,145 | 605,829 | 589,706 | ||
Taxes and surcharges | 41,484 | 43,702 | 123,434 | 126,747 | ||
Selling and distribution expenses | 942 | 833 | 2,492 | 2,238 | ||
General and administrative expenses | 7,151 | 9,269 | 18,318 | 26,079 | ||
Research and development costs | 1,789 | 1,385 | 5,516 | 5,273 | ||
Financial expenses | 1,947 | 322 | 5,860 | 1,711 | ||
Exploration expenses, including dry holes | 2,138 | 2,232 | 6,159 | 6,405 | ||
Add: Other income | 564 | 677 | 1,455 | 1,270 | ||
Investment income | 5,599 | 7,925 | 16,404 | 17,786 | ||
Gains/(losses) from changes in fair value | - | - | 20 | (171) | ||
Credit impairment losses | 10 | 1 | 18 | 15 | ||
Impairment losses | (2) | (29) | (1) | (78) | ||
Asset disposal gains/(losses) | 6,963 | (27) | 6,984 | 225 | ||
II. Operating profit | 10,721 | 10,150 | 23,904 | 34,991 | ||
Add: Non-operating income | 86 | 94 | 197 | 239 | ||
Less: Non-operating expenses | 258 | 412 | 535 | 701 | ||
III. Profit before taxation | 10,549 | 9,832 | 23,566 | 34,529 | ||
Less: Income tax expense | 1,163 | 438 | 1,673 | 4,520 | ||
IV. Net profit | 9,386 | 9,394 | 21,893 | 30,009 | ||
(i) Continuous operating net profit | 9,386 | 9,394 | 21,893 | 30,009 | ||
(ii) Termination of net profit | - | - | - | - | ||
V. Other comprehensive income | 113 | 14 | 899 | 14 | ||
Items that may be reclassified subsequently to profit or loss | 113 | 14 | 899 | 14 | ||
Other comprehensive income that can be converted into profit or loss under the equity method | 112 | 14 | 139 | 14 | ||
Cash flow hedges | 1 | - | 760 | - | ||
VI. Total comprehensive income | 9,499 | 9,408 | 22,792 | 30,023 | ||
Dai Houliang Ma Yongsheng Wang Dehua | ||
Chairman President Chief Financial Officer
| ||
Consolidated Cash Flow Statement | ||
for the nine-month period ended 30 September 2019 | ||
Prepared by: China Petroleum & Chemical Corporation |
| |
Units: million Currency: RMB Type: unaudited | ||
Items | Nine-month period ended 30 September 2019 | Nine-month period ended 30 September 2018 |
I. Cash flows from operating activities: |
|
|
Cash received from sale of goods and rendering of services | 2,366,716 | 2,310,756 |
Refund of taxes and levies | 1,446 | 1,208 |
Other cash received relating to operating activities | 102,241 | 57,437 |
Sub-total of cash inflows | 2,470,403 | 2,369,401 |
Cash paid for goods and services | (1,925,742) | (1,810,925) |
Cash paid to and for employees | (51,592) | (49,995) |
Payments of taxes and levies | (280,179) | (288,801) |
Other cash paid relating to operating activities | (131,492) | (81,761) |
Sub-total of cash outflows | (2,389,005) | (2,231,482) |
Net cash flow from operating activities | 81,398 | 137,919 |
II. Cash flows from investing activities: |
|
|
Cash received from disposal of investments | 19,455 | 49,695 |
Cash received from returns on investments | 8,173 | 7,338 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 433 | 8,490 |
Other cash received relating to investing activities | 67,954 | 55,003 |
Sub-total of cash inflows | 96,015 | 120,526 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (73,910) | (54,464) |
Cash paid for acquisition of investments | (14,296) | (10,551) |
Net cash paid for the acquisition of subsidiaries and other business entities | - | (3,188) |
Other cash paid relating to investing activities | (78,561) | (55,593) |
Sub-total of cash outflows | (166,767) | (123,796) |
Net cash flow from investing activities | (70,752) | (3,270) |
III. Cash flows from financing activities: |
|
|
Cash received from capital contributions | 2,222 | 874 |
Including: Cash received from minority shareholders' capital contributions to subsidiaries | 2,198 | 868 |
Cash received from borrowings | 469,696 | 526,630 |
Other cash received relating to financing activities | 322 | - |
Sub-total of cash inflows | 472,240 | 527,504 |
Cash repayments of borrowings | (441,579) | (517,451) |
Cash paid for dividends, profits distribution or interest | (55,447) | (85,928) |
Including: Subsidiaries' cash payments for distribution of dividends or profits to minority shareholders | (4,659) | (15,783) |
Other cash paid relating to financing activities | (9,245) | (23) |
Sub-total of cash outflows | (506,271) | (603,402) |
Net cash flow from financing activities | (34,031) | (75,898) |
IV. Effects of changes in foreign exchange rate | 313 | 315 |
V. Net (decrease)/increase in cash and cash equivalents | (23,072) | 59,066 |
Add:Initial balance of cash and cash equivalents | 111,922 | 113,218 |
VI. Ending balance of cash and cash equivalents | 88,850 | 172,284 |
Dai Houliang Ma Yongsheng Wang Dehua | ||
Chairman President Chief Financial Officer
|
Cash Flow Statement | ||
for the nine-month period ended 30 September 2019 | ||
Prepared by: China Petroleum & Chemical Corporation |
| |
Units: million Currency: RMB Type: unaudited | ||
Items | Nine-month period ended 30 September 2019 | Nine-month period ended 30 September 2018 |
I. Cash flows from operating activities: |
|
|
Cash received from sale of goods and rendering of services | 889,797 | 902,672 |
Refund of taxes and levies | 947 | 768 |
Other cash received relating to operating activities | 5,062 | 18,654 |
Sub-total of cash inflows | 895,806 | 922,094 |
Cash paid for goods and services | (652,604) | (626,237) |
Cash paid to and for employees | (26,693) | (27,990) |
Payments of taxes and levies | (186,228) | (184,068) |
Other cash paid relating to operating activities | (6,888) | (10,499) |
Sub-total of cash outflows | (872,413) | (848,794) |
Net cash flow from operating activities | 23,393 | 73,300 |
II.Cash flows from investing activities: |
|
|
Cash received from disposal of investments | 16,650 | 57,769 |
Cash received from returns on investments | 16,510 | 30,145 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 18 | 477 |
Other cash received relating to investing activities | 22,382 | 20,175 |
Sub-total of cash inflows | 55,560 | 108,566 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (47,047) | (28,910) |
Cash paid for acquisition of investments | (8,338) | (7,407) |
Other cash paid relating to investing activities | (36,900) | (10,183) |
Sub-total of cash outflows | (92,285) | (46,500) |
Net cash flow from investing activities | (36,725) | 62,066 |
III.Cash flows from financing activities: |
|
|
Cash received from borrowings | 91,665 | 98,500 |
Other cash received relating to financing activities | 69,218 | - |
Sub-total of cash inflows | 160,883 | 98,500 |
Cash repayments of borrowings | (67,587) | (126,626) |
Cash paid for dividends or interest | (47,149) | (68,911) |
Other cash paid relating to financing activities | (58,570) | - |
Sub-total of cash outflows | (173,306) | (195,537) |
Net cash flow from financing activities | (12,423) | (97,037) |
IV. Net (decrease)/increase in cash and cash equivalents | (25,755) | 38,329 |
Add:Initial balance of cash and cash equivalents | 59,120 | 72,309 |
V. Ending balance of cash and cash equivalents | 33,365 | 110,638 |
Dai Houliang Ma Yongsheng Wang Dehua | ||
Chairman President Chief Financial Officer
|
Segment Reporting for the nine-month period ended 30 September 2019 | |||
Prepared by: China Petroleum & Chemical Corporation |
| ||
Units: million Currency: RMB Type: unaudited | |||
Items | Nine-month period ended 30 September 2019 | Nine-month period ended 30 September 2018 | |
Income from principal operations |
|
| |
Exploration and production |
|
| |
External sales | 79,424 | 62,271 | |
Inter-segment sales | 66,262 | 71,033 | |
Subtotal | 145,686 | 133,304 | |
Refining |
|
| |
External sales | 105,986 | 109,029 | |
Inter-segment sales | 801,310 | 820,020 | |
Subtotal | 907,296 | 929,049 | |
Marketing and distribution |
|
| |
External sales | 1,030,178 | 1,028,274 | |
Inter-segment sales | 2,719 | 4,092 | |
Subtotal | 1,032,897 | 1,032,366 | |
Chemicals |
|
| |
External sales | 327,637 | 344,753 | |
Inter-segment sales | 42,508 | 46,626 | |
Subtotal | 370,145 | 391,379 | |
Corporate and others |
|
| |
External sales | 641,791 | 480,879 | |
Inter-segment sales | 473,187 | 458,916 | |
Subtotal | 1,114,978 | 939,795 | |
Elimination of inter-segment sales | (1,385,986) | (1,400,687) | |
Consolidated income from principal operations | 2,185,016 | 2,025,206 | |
Income from other operations |
|
| |
Exploration and production | 6,722 | 6,656 | |
Refining | 3,829 | 3,774 | |
Marketing and distribution | 25,436 | 24,944 | |
Chemicals | 10,912 | 11,400 | |
Corporate and others | 1,390 | 990 | |
Consolidated income from other operations | 48,289 | 47,764 | |
Consolidated operating income | 2,233,305 | 2,072,970 | |
Operating profit/(loss) |
|
| |
By segment |
|
| |
Exploration and production | 7,295 | (2,017) | |
Refining | 21,445 | 53,675 | |
Marketing and distribution | 23,139 | 23,784 | |
Chemicals | 16,059 | 23,280 | |
Corporate and others | 1,066 | (7,124) | |
Elimination | (244) | (7,440) | |
Total segment operating profit | 68,760 | 84,158 | |
Investment income |
|
| |
Exploration and production | 2,398 | 2,066 | |
Refining | (767) | 604 | |
Marketing and distribution | 2,291 | 1,848 | |
Chemicals | 3,227 | 4,795 | |
Corporate and others | (674) | 390 | |
Total segment investment income | 6,475 | 9,703 | |
Financial expenses | (7,790) | (632) | |
(Loss)/gain from changes in fair value | (1,426) | 476 | |
Asset disposal (losses)/gains | (169) | 75 | |
Other income | 2,674 | 3,477 | |
Operating profit | 68,524 | 97,257 | |
Add: Non-operating income | 1,051 | 900 | |
Less: Non-operating expenses | 1,243 | 1,455 | |
Profit before taxation | 68,332 | 96,702 | |
4.2 Quarterly financial statements prepared under International Financial Reporting
Standards (IFRS)
Consolidated Income Statement for the nine-month period ended 30 September 2019 | ||||||
Prepared by: China Petroleum & Chemical Corporation | ||||||
|
| Units: million Currency: RMB Type: unaudited | ||||
Items | Three-month period ended 30 September 2019 | Three-month period ended 30 September 2018 | Nine-month period ended 30 September 2019 | Nine-month period ended 30 September 2018 | ||
Turnover and other operating revenues |
|
|
|
| ||
Turnover | 718,183 | 756,403 | 2,185,016 | 2,025,206 | ||
Other operating revenues | 16,126 | 16,315 | 48,289 | 47,764 | ||
Subtotal | 734,309 | 772,718 | 2,233,305 | 2,072,970 | ||
Operating expenses |
|
|
|
| ||
Purchased crude oil, products and operating supplies and expenses | (591,303) | (619,364) | (1,798,485) | (1,614,161) | ||
Selling, general and administrative expenses | (13,269) | (16,182) | (38,034) | (47,514) | ||
Depreciation, depletion and amortization | (26,387) | (28,146) | (79,071) | (80,048) | ||
Exploration expenses, including dry holes | (2,276) | (2,357) | (6,623) | (6,719) | ||
Personnel expenses | (20,936) | (17,656) | (59,157) | (54,996) | ||
Taxes other than income tax | (61,685) | (64,824) | (181,931) | (183,545) | ||
Other operating income/(expense), net | 749 | 100 | (1,664) | (122) | ||
Total operating expenses | (715,107) | (748,429) | (2,164,965) | (1,987,105) | ||
Operating profit | 19,202 | 24,289 | 68,340 | 85,865 | ||
Finance costs |
|
|
|
| ||
Interest expense | (4,341) | (2,053) | (13,261) | (6,025) | ||
Interest income | 1,804 | 2,022 | 5,665 | 5,529 | ||
Foreign currency exchange loss, net | (90) | (338) | (194) | (136) | ||
Net finance costs | (2,627) | (369) | (7,790) | (632) | ||
Investment income | 25 | 53 | 256 | 893 | ||
Share of profits less losses from associates and joint ventures | 2,745 | 4,273 | 8,620 | 10,891 | ||
Profit before taxation | 19,345 | 28,246 | 69,426 | 97,017 | ||
Income tax expense | (3,728) | (6,337) | (13,868) | (20,923) | ||
Profit for the period | 15,617 | 21,909 | 55,558 | 76,094 | ||
Attributable to: |
|
|
|
| ||
Shareholders of the Company | 12,020 | 17,769 | 44,226 | 60,155 | ||
Non-controlling interests | 3,597 | 4,140 | 11,332 | 15,939 | ||
Profit for the period | 15,617 | 21,909 | 55,558 | 76,094 | ||
Earnings per share |
|
|
|
| ||
Basic earnings per share (RMB) | 0.099 | 0.147 | 0.365 | 0.497 | ||
Diluted earnings per share (RMB) | 0.099 | 0.147 | 0.365 | 0.497 | ||
Consolidated Statement of Comprehensive Income for the nine-month period ended 30 September 2019 | ||||||
Prepared by: China Petroleum & Chemical Corporation | ||||||
|
| Units: million Currency: RMB Type: unaudited | ||||
Items | Three-month period ended 30 September 2019 | Three-month period ended 30 September 2018 | Nine-month period ended 30 September 2019 | Nine-month period ended 30 September 2018 | ||
Profit for the period | 15,617 | 21,909 | 55,558 | 76,094 | ||
Other comprehensive income: | 1,663 | 3,619 | 6,231 | 3,877 | ||
Items that may not be reclassified subsequently to profit or loss: |
|
|
|
| ||
Equity investments at fair value through other comprehensive income | (2) | 3 | (22) | (14) | ||
Items that may be reclassified subsequently to profit or loss: |
|
|
|
| ||
Cash flow hedges | (248) | 1,092 | 4,543 | 584 | ||
Share of other comprehensive income of associates and joint ventures | (98) | (172) | (607) | (285) | ||
Foreign currency translation differences | 2,011 | 2,696 | 2,317 | 3,592 | ||
Total comprehensive income | 17,280 | 25,528 | 61,789 | 79,971 | ||
Attributable to: |
|
|
|
| ||
Shareholders of the Company | 13,003 | 20,514 | 49,787 | 62,903 | ||
Non-controlling interests | 4,277 | 5,014 | 12,002 | 17,068 | ||
Consolidated Balance Sheet as at 30 September 2019 | ||
Prepared by: China Petroleum & Chemical Corporation | ||
Units: million Currency: RMB Type: unaudited | ||
Items | At 30 September 2019 | At 31 December 2018 |
Non-current assets: |
|
|
Property, plant and equipment, net | 599,551 | 617,762 |
Construction in progress | 161,274 | 136,963 |
Right-of-use assets | 266,444 | - |
Goodwill | 8,705 | 8,676 |
Interest in associates | 92,441 | 89,537 |
Interest in joint ventures | 57,070 | 56,184 |
Financial assets at fair value through other comprehensive income | 1,428 | 1,450 |
Deferred tax assets | 19,972 | 21,694 |
Lease prepayments | - | 64,514 |
Long-term prepayments and other non-current assets | 84,411 | 91,408 |
Total non-current assets | 1,291,296 | 1,088,188 |
Current assets: |
|
|
Cash and cash equivalents | 88,850 | 111,922 |
Time deposits with financial institutions | 71,115 | 55,093 |
Financial assets at fair value through profit and loss | 10,443 | 25,732 |
Derivatives financial assets | 1,632 | 7,887 |
Trade accounts receivable | 76,157 | 56,993 |
Bills receivable | 12,220 | 7,886 |
Inventories | 208,740 | 184,584 |
Prepaid expenses and other current assets | 65,883 | 54,023 |
Total current assets | 535,040 | 504,120 |
Current liabilities: |
|
|
Short-term debts | 62,632 | 29,462 |
Loans from Sinopec Group Company and fellow subsidiaries | 26,829 | 31,665 |
Lease liabilities | 15,331 | - |
Derivatives financial liabilities | 4,898 | 13,571 |
Trade accounts payable | 217,556 | 186,341 |
Bills payable | 11,058 | 6,416 |
Contract liabilities | 135,888 | 124,793 |
Other payables | 119,838 | 166,151 |
Income tax payable | 3,854 | 6,699 |
Total current liabilities | 597,884 | 565,098 |
Net current liabilities | 62,844 | 60,978 |
Total assets less current liabilities | 1,228,452 | 1,027,210 |
Non-current liabilities: |
|
|
Long-term debts | 52,394 | 51,011 |
Loans from Sinopec Group Company and fellow subsidiaries | 42,048 | 42,516 |
Lease liabilities | 180,655 | - |
Deferred tax liabilities | 5,900 | 5,948 |
Provisions | 44,894 | 42,800 |
Other non-current liabilities | 30,754 | 28,400 |
Total non-current liabilities | 356,645 | 170,675 |
Total net assets | 871,807 | 856,535 |
Equity: |
|
|
Share capital | 121,071 | 121,071 |
Reserves | 603,792 | 596,213 |
Total equity attributable to shareholders of the Company | 724,863 | 717,284 |
Non-controlling interests | 146,944 | 139,251 |
Total equity | 871,807 | 856,535 |
Consolidated Statement of Cash Flows for the nine-month period ended 30 September 2019 | ||
Prepared by: China Petroleum & Chemical Corporation | ||
Units: million Currency: RMB Type: unaudited | ||
Items | Nine-month period ended 30 September 2019 | Nine-month period ended 30 September 2018 |
Net cash generated from operating activities(a) | 81,398 | 137,919 |
Investing activities |
|
|
Capital expenditure | (67,186) | (50,466) |
Exploratory wells expenditure | (6,724) | (3,998) |
Purchase of investments, investments in associates and investments in joint ventures | (4,096) | (6,551) |
Payments for financial assets at fair value through profit or loss | (10,200) | (4,000) |
Proceeds from sale of financial assets at fair value through profit or loss | 25,350 | 48,000 |
Payment for acquisition of subsidiary, net of cash acquired | - | (3,188) |
Proceeds from disposal of investments and investments in associates | 805 | 1,695 |
Proceeds from disposal of property, plant, equipment and other non-current assets | 433 | 8,490 |
Increase in time deposits with maturities over three months | (77,339) | (53,357) |
Decrease in time deposits with maturities over three months | 56,107 | 50,080 |
Interest received | 3,925 | 2,687 |
Investment and dividend income received | 8,173 | 7,338 |
Net cash used in investing activities | (70,752) | (3,270) |
Financing activities |
|
|
Proceeds from bank and other loans | 469,696 | 526,630 |
Repayments of bank and other loans | (441,579) | (517,451) |
Contributions to subsidiaries from non-controlling interests | 2,222 | 874 |
Dividends paid by the Company | (46,007) | (67,800) |
Distributions by subsidiaries to non-controlling interests | (4,659) | (14,006) |
Interest paid | (4,781) | (4,122) |
Repayments of lease liabilities | (9,173) | - |
Payments made to acquire non-controlling interests | - | (23) |
Proceeds from other financing activities | 250 | - |
Net cash used in financing activities | (34,031) | (75,898) |
Net (decrease)/increase in cash and cash equivalents | (23,385) | 58,751 |
Cash and cash equivalents at 1 January | 111,922 | 113,218 |
Effect of foreign currency exchange rate changes | 313 | 315 |
Cash and cash equivalents at 30 September | 88,850 | 172,284 |
Note to consolidated statement of Cash Flows for the nine-month period ended 30 September 2019 | ||
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 2019 | Nine-month period ended 30 September 2018 |
Operating activities |
|
|
Profit before taxation | 69,426 | 97,017 |
Adjustments for: |
|
|
Depreciation, depletion and amortization | 79,071 | 80,048 |
Dry hole costs written off | 4,553 | 5,534 |
Share of profits from associates and joint ventures | (8,620) | (10,891) |
Investment income | (256) | (893) |
Interest income | (5,665) | (5,529) |
Interest expense | 13,261 | 6,025 |
Loss on foreign currency exchange rate changes and derivative financial instruments | 430 | 5,465 |
Loss/(Gain) on disposal of property, plant, equipment and other non-current assets, net | 248 | (75) |
Impairment reversal on assets | 91 | 704 |
Credit impairment losses | 7 | - |
Operating profit before change of operating capital | 152,546 | 177,405 |
Accounts receivable and other current assets | (22,910) | (81,391) |
Inventories | (14,055) | (43,745) |
Accounts payable and other current liabilities | (19,003) | 115,295 |
Subtotal | 96,578 | 167,564 |
Income tax paid | (15,180) | (29,645) |
Net cash generated from operating activities | 81,398 | 137,919 |
Segment Reporting for the nine-month period ended 30 September 2019 | ||
Prepared by: China Petroleum & Chemical Corporation | ||
Units: million Currency: RMB Type: unaudited | ||
Items | Nine-month period ended 30 September 2019 | Nine-month period ended 30 September 2018 |
Turnover |
|
|
Exploration and production |
|
|
External sales | 79,424 | 62,271 |
Inter-segment sales | 66,262 | 71,033 |
Subtotal | 145,686 | 133,304 |
Refining |
|
|
External sales | 105,986 | 109,029 |
Inter-segment sales | 801,310 | 820,020 |
Subtotal | 907,296 | 929,049 |
Marketing and distribution |
|
|
External sales | 1,030,178 | 1,028,274 |
Inter-segment sales | 2,719 | 4,092 |
Subtotal | 1,032,897 | 1,032,366 |
Chemicals |
|
|
External sales | 327,637 | 344,753 |
Inter-segment sales | 42,508 | 46,626 |
Subtotal | 370,145 | 391,379 |
Corporate and others |
|
|
External sales | 641,791 | 480,879 |
Inter-segment sales | 473,187 | 458,916 |
Subtotal | 1,114,978 | 939,795 |
Elimination of inter-segment sales | (1,385,986) | (1,400,687) |
Turnover | 2,185,016 | 2,025,206 |
Other operating revenues |
|
|
Exploration and production | 6,722 | 6,656 |
Refining | 3,829 | 3,774 |
Marketing and distribution | 25,436 | 24,944 |
Chemicals | 10,912 | 11,400 |
Corporate and others | 1,390 | 990 |
Other operating revenues | 48,289 | 47,764 |
Turnover and other operating revenues | 2,233,305 | 2,072,970 |
Result |
|
|
Operating (loss)/profit |
|
|
By segment |
|
|
Exploration and production | 8,718 | (1,081) |
Refining | 22,500 | 54,680 |
Marketing and distribution | 23,245 | 23,389 |
Chemicals | 16,560 | 23,944 |
Corporate and others | (2,439) | (7,627) |
Elimination | (244) | (7,440) |
Total segment operating profit | 68,340 | 85,865 |
Share of profits from associates and joint ventures |
|
|
Exploration and production | 2,256 | 2,064 |
Refining | (802) | 583 |
Marketing and distribution | 2,337 | 2,255 |
Chemicals | 3,237 | 4,733 |
Corporate and others | 1,592 | 1,256 |
Aggregate share of profits from associates and joint ventures | 8,620 | 10,891 |
Investment income/(losses) |
|
|
Exploration and production | (3) | 2 |
Refining | 35 | 16 |
Marketing and distribution | 63 | 30 |
Chemicals | 2 | 36 |
Corporate and others | 159 | 809 |
Aggregate investment income | 256 | 893 |
Net finance costs | (7,790) | (632) |
Profit before taxation | 69,426 | 97,017 |
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 recognized 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 recognized 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 2019 | Nine-month period ended 30 September 2018 |
Net profit under CASs | 54,464 | 75,779 |
Adjustments: |
|
|
Government grants (i) | 42 | 71 |
Safety production fund (ii) | 1,229 | 1,140 |
Others | (177) | (896) |
Profit for the period under IFRS | 55,558 | 76,094 |
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 | At 30 September 2019 | At 31 December 2018 |
Shareholders' equity under CASs | 872,889 | 857,659 |
Adjustments: |
|
|
Government grants(i) | (1,082) | (1,124) |
Total equity under IFRS | 871,807 | 856,535 |
4.4 First implementation of the New Financial Instruments Standards, New Income Standards, New Lease Standards adjustments for financial statements related items at the beginning of the year is as below:
Consolidated Balance Sheet | |||
|
| Units: million | Currency: RMB |
Items | At 31 December 2018 | At 1 January 2019 | Adjustment |
Current assets: |
|
|
|
Cash at bank and on hand | 167,015 | 167,015 |
|
Financial assets held for trading | 25,732 | 25,732 |
|
Derivative financial assets | 7,887 | 7,887 |
|
Bills receivable | 7,886 | 7,886 |
|
Accounts receivable | 56,993 | 56,993 |
|
Prepayments | 5,937 | 5,171 | (766) |
Other receivables | 25,312 | 25,312 |
|
Inventories | 184,584 | 184,584 |
|
Other current assets | 22,774 | 22,774 |
|
Total current assets | 504,120 | 503,354 | (766) |
Non-current assets: |
|
|
|
Long-term equity investments | 145,721 | 145,721 |
|
Other equity instrument investments | 1,450 | 1,450 |
|
Fixed assets | 617,812 | 617,812 |
|
Construction in progress | 136,963 | 136,963 |
|
Right-of-use assets | - | 207,455 | 207,455 |
Intangible assets | 103,855 | 103,855 |
|
Goodwill | 8,676 | 8,676 |
|
Long-term deferred expenses | 15,659 | 7,534 | (8,125) |
Deferred tax assets | 21,694 | 21,694 |
|
Other non-current assets | 36,358 | 36,358 |
|
Total non-current assets | 1,088,188 | 1,287,518 | 199,330 |
Total assets | 1,592,308 | 1,790,872 | 198,564 |
Current liability: |
|
|
|
Short-term loans | 44,692 | 44,692 |
|
Derivative financial liabilties | 13,571 | 13,571 |
|
Bills payable | 6,416 | 6,416 |
|
Accounts payable | 186,341 | 186,341 |
|
Contract liabilities | 124,793 | 124,793 |
|
Employee benefits payable | 7,312 | 7,312 |
|
Taxes payable | 87,060 | 87,060 |
|
Other payables | 77,463 | 77,463 |
|
Non-current liabilities due within one year | 17,450 | 31,344 | 13,894 |
Total current liabilities | 565,098 | 578,992 | 13,894 |
Non-current liabilities: |
|
|
|
Long-term loans | 61,576 | 61,576 |
|
Debentures payable | 31,951 | 31,951 |
|
Lease liabilities | - | 184,670 | 184,670 |
Provisions | 42,800 | 42,800 |
|
Deferred tax liabilities | 5,948 | 5,948 |
|
Other non-current liabilities | 27,276 | 27,276 |
|
Total non-current liabilities | 169,551 | 354,221 | 184,670 |
Total liabilities | 734,649 | 933,213 | 198,564 |
Shareholders' equity: |
|
|
|
Share capital | 121,071 | 121,071 |
|
Capital reserve | 119,192 | 119,192 |
|
Other comprehensive income | (6,774) | (6,774) |
|
Specific reserve | 1,706 | 1,706 |
|
Surplus reserves | 203,678 | 203,678 |
|
Retained earnings | 279,482 | 279,482 |
|
Total equity attributable to shareholders of the Company | 718,355 | 718,355 |
|
Minority interests | 139,304 | 139,304 |
|
Total shareholders' equity | 857,659 | 857,659 |
|
Total liabilities and shareholders' equity | 1,592,308 | 1,790,872 | 198,564 |
Balance Sheet | |||
|
| Units: million | Currency: RMB |
Items | At 31 December 2018 | At 1 January 2019 | Adjustment |
Current assets: |
|
|
|
Cash at bank and on hand | 82,879 | 82,879 |
|
Financial assets held for trading | 22,500 | 22,500 |
|
Bills receivable | 156 | 156 |
|
Accounts receivable | 29,989 | 29,989 |
|
Prepayments | 2,488 | 2,488 |
|
Other receivables | 57,432 | 57,432 |
|
Inventories | 45,825 | 45,825 |
|
Other current assets | 15,835 | 15,835 |
|
Total current assets | 257,104 | 257,104 |
|
Non-current assets: |
|
|
|
Long-term equity investments | 289,207 | 289,207 |
|
Other equity instrument investments | 395 | 395 |
|
Fixed assets | 302,082 | 302,082 |
|
Construction in progress | 51,598 | 51,598 |
|
Right-of-use assets | - | 119,776 | 119,776 |
Intangible assets | 8,571 | 8,571 |
|
Long-term deferred expenses | 2,480 | 2,480 |
|
Deferred tax assets | 11,021 | 11,021 |
|
Other non-current assets | 9,145 | 9,145 |
|
Total non-current assets | 674,499 | 794,275 | 119,776 |
Total assets | 931,603 | 1,051,379 | 119,776 |
Current liabilities: |
|
|
|
Short-term loans | 3,961 | 3,961 |
|
Derivative financial liabilties | 967 | 967 |
|
Bills payable | 2,075 | 2,075 |
|
Accounts payable | 82,343 | 82,343 |
|
Contract liabilities | 4,230 | 4,230 |
|
Employee benefits payable | 4,294 | 4,294 |
|
Taxes payable | 54,764 | 54,764 |
|
Other payables | 119,514 | 119,514 |
|
Non-current liabilities due within one year | 16,729 | 24,183 | 7,454 |
Total current liabilities | 288,877 | 296,331 | 7,454 |
Non-current liabilities: |
|
|
|
Long-term loans | 48,104 | 48,104 |
|
Debentures payable | 20,000 | 20,000 |
|
Lease liabilities | - | 112,322 | 112,322 |
Provisions | 33,094 | 33,094 |
|
Other non-current liabilities | 4,332 | 4,332 |
|
Total non-current liabilities | 105,530 | 217,852 | 112,322 |
Total liabilities | 394,407 | 514,183 | 119,776 |
Shareholders' equity: |
|
|
|
Share capital | 121,071 | 121,071 |
|
Capital reserve | 68,795 | 68,795 |
|
Other comprehensive income | (485) | (485) |
|
Specific reserve | 989 | 989 |
|
Surplus reserves | 203,678 | 203,678 |
|
Retained earnings | 143,148 | 143,148 |
|
Total shareholders' equity | 537,196 | 537,196 |
|
Total liabilities and shareholders' equity | 931,603 | 1,051,379 | 119,776 |