30 Oct 2018 12:08
China Petroleum & Chemical Corporation
The Third Quarterly Report for 2018
30 October 2018
Beijing, China
1 Important notice
1.1 The Board of Directors, the Supervisory Board of China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") and its directors, supervisors and senior management warrant that there are no material omissions, misrepresentations or misleading statements 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 2018 (the "Quarterly Report") was approved at the 4th meeting of the Seventh Session of the Board of Directors of Sinopec Corp. All the directors attended this meeting.
1.3 Mr. Dai Houliang, Chairman of the Board of Directors and President, Mr. Wang Dehua, Chief Financial Officer and Head of the Corporate Financial Department of Sinopec Corp. warrant the authenticity, accuracy and completeness of the financial statements contained in the Quarterly Report.
1.4 The financial statements in the 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 PRC Accounting Standards for Business Enterprises ("ASBE")
RMB million
Items | As of 30 September 2018 | As of 31 December 2017 | Changes from the end of last year to the end of the reporting period (%) |
Total assets | 1,662,760 | 1,595,504 | 4.2 |
Total equity attributable to equity shareholders of the Company | 722,317 | 727,244 | (0.7) |
Items | Nine Months | Changes compare with the same period last year (%) | |
2018 | 2017 | ||
Net cash flow from operating activities | 137,919 | 111,193 | 24.0 |
| |||
Operating income | 2,072,970 | 1,744,955 | 18.8 |
Net profit attributable to equity shareholders of the Company | 59,980 | 38,373 | 56.3 |
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses | 57,150 | 36,718 | 55.6 |
Weighted average return on net assets (%) | 8.28 | 5.37 | 2.91 percentage points |
Basic earnings per share (RMB) | 0.495 | 0.317 | 56.3 |
Diluted earnings per share (RMB) | 0.495 | 0.317 | 56.3 |
Extraordinary (gain)/loss items | Third Quarter 2018 RMB million | Nine Months 2018 RMB million |
Net loss/(gain) on disposal of non-current assets | 143 | (75) |
Donations | 27 | 84 |
Government grants | (1,709) | (3,742) |
Gains on holding and disposal of various investments | (525) | (993) |
Other extraordinary income and expenses, net | 549 | 763 |
Subtotal | (1,515) | (3,963) |
Tax effect | 338 | 994 |
Total | (1,177) | (2,969) |
Equity shareholders of the Company | (1,021) | (2,830) |
Minority interests | (156) | (139) |
2.1.2 Principal financial data and indicators prepared in accordance with International Financial Reporting standards ("IFRS")
RMB million
| As of 30 September 2018 | As of 31 December 2017 | Changes from the end of last year to the end of the reporting period (%) |
Total assets | 1,662,760 | 1,595,504 | 4.2 |
Equity attributable to equity shareholders of the Company | 721,261 | 726,120 | (0.7) |
| Nine Months | Changes compare with the same period last year (%) | |
2018 | 2017 | ||
Operating profit | 85,865 | 55,757 | 54.0 |
Net profit attributable to equity shareholders of the Company | 60,155 | 39,404 | 52.7 |
Basic earnings per share (RMB) | 0.497 | 0.325 | 52.7 |
Diluted earnings per share (RMB) | 0.497 | 0.325 | 52.7 |
Return on net assets (%) | 8.34 | 5.51 | 2.83 percentage points |
Net cash generated from operating activities | 137,919 | 111,193 | 24.0 |
2.2 Total number of shareholders and top ten shareholders at the end of the reporting period
Total number of shareholders | 444,254, including 438,434 shareholders of domestic A shares and 5,820 shareholders of overseas H shares. | ||||
Top ten shareholders (Top ten shareholders holding shares without selling restrictions) | |||||
Name of shareholders | Total number of shares held | Percentage (%) | Number of shares subject to pledge or lock-ups | Nature of shareholder | |
China Petrochemical Corporation | 83,309,227,393 | 68.81 | 0 | State-owned share | |
HKSCC (Nominees) Limited 1 | 25,393,600,612 | 20.97 | Unknown | H share | |
中国证券金融股份有限公司 | 2,607,552,057 | 2.15 | 0 | A share | |
国新投资有限公司 | 1,241,918,354 | 1.03 | 0 | A share | |
北京诚通金控投资有限公司 | 1,241,721,854 | 1.03 | 0 | A share | |
香港中央结算有限公司 | 1,071,108,784 | 0.88 | 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－分红－个人分红－005L－FH002沪 | 137,083,192 | 0.11 | 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 | 109,690,765 | 0.09 | 0 | A share | |
中国工商银行－上证50交易型开放式指数证券投资基金 | 92,194,730 | 0.08 | 0 | A share | |
Note 1: 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－分红－个人分红－005L－FH002沪and中国人寿保险股份有限公司－传统－普通保险产品－005L－CT001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 2018, global economy recorded slow recovery, while China economy maintained an overall stable performance securing progress in its economic development with gross domestic product (GDP) up by 6.7% year on year. International crude oil prices fluctuated with upward trend. The average spot price of Platts Brent of the period increased by 39.0% year on year. While the domestic demand for oil products maintained steady growth, the market witnessed strong competition because of abundant supply. According to the statistics of NDRC, domestic consumption of refined oil products increased by 5.4% compared with the same period last year, among which gasoline consumption increased by 6.4%, consumption growth for kerosene and diesel was 9.2% and 3.7%, respectively. Domestic demand for natural gas recorded high growth rate, up by 18.0% compared with the same period last year. Domestic consumption of major chemicals maintained significant growth with consumption of ethylene equivalent up by 7.8% year on year, and gross margin for chemical products remained at a high level.
In accordance with ASBE, net profit attributable to equity shareholders of the Company was RMB 59.980 billion, up by 56.3% compared with the same period last year. In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB 60.155 billion, up by 52.7% compared with the same period last year.
Exploration and Production: With the recovery of crude oil price, the Company pursued efficient exploration and effective production to increase proved reserves. Our continuing efforts in exploration paid off with new oil and gas discoveries in Sichuan Basin, Tarim Basin, Yin'e Basin and southern Songliao Basin. In development, we adopted a profit-oriented approach to speed up the crude oil new production. We also accelerated natural gas development by enhancing production-supply-storage-marketing system building to realise synergy along the entire value chain. In the first three quarters, oil and gas production of the Company was 335.34 million barrels of oil equivalent, of which domestic crude oil production increased by 0.2% while natural gas grew by 5.9%. The Exploration and Production Segment's operating loss narrowed by RMB 25.442 billion to RMB 1.081 billion compared with same period last year.
Exploration and Production | Unit | For nine-month period ended 30 September | Changes | |
2018 | 2017 | (%) | ||
Oil and gas production2 | million boe | 335.34 | 332.63 | 0.8 |
Crude oil production | million barrels | 216.49 | 220.21 | (1.7) |
China | million barrels | 186.50 | 186.09 | 0.2 |
Overseas | million barrels | 29.82 | 34.12 | (12.6) |
Natural gas production | billion cubic feet | 713.77 | 674.15 | 5.9 |
Realised crude oil price | USD/barrel | 65.12 | 47.05 | 38.4 |
Realised natural gas price | USD/thousand cubic feet | 5.91 | 5.23 | 13.0 |
Note 2: Conversion: for domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil in 2017 1 tonne = 7.21 barrels, in 2018 1 tonne=7.20 barrels. For production of natural gas, 1 cubic meter = 35.31 cubic feet. 1 barrel of oil equivalent=6,000 cubic feet.
Refining: With the market-oriented approach, we optimised product mix to produce more gasoline and jet fuel, and the diesel-to-gasoline ratio further decreased. The GB VI refined oil products quality upgrading was constantly pushed forward. We allocated domestic and overseas resources as a whole and export of refined oil products was increased to help maintain high utilisation of refining facilities. Crude oil sourcing optimisation continued to lower our feedstock cost. We comprehensively optimised our production plans to ensure safe and reliable operations. The advantage of centralised marketing was given full play, and profitability of LPG, asphalt, and sulphur maintained at a high level. In the first three quarters, refinery throughput increased by 3.0% compared with the same period last year. Refined oil products production increased by 3.5%, among which gasoline up by 7.0%, kerosene up by 9.0% and diesel down by 1.8% compared with the same period last year. The Refining Segment realised an operating profit of RMB 54.680 billion, up by 24.7% compared with the same period last year.
Refining3 | Unit | For nine-month period ended 30 September | Changes (%) | |
2018 | 2017 | |||
Refinery throughput | million tonnes | 182.74 | 177.46 | 3.0 |
Gasoline, diesel and kerosene production | million tonnes | 116.13 | 112.20 | 3.5 |
Gasoline | million tonnes | 45.74 | 42.73 | 7.0 |
Diesel | million tonnes | 48.62 | 49.50 | (1.8) |
Kerosene | million tonnes | 21.77 | 19.97 | 9.0 |
Light chemical feedstock | million tonnes | 29.01 | 28.54 | 1.6 |
Light product yield | % | 76.11 | 75.84 | 0.27 percentage points |
Refining yield | % | 94.98 | 94.76 | 0.22 percentage points |
Note 3: Including 100% production of domestic joint ventures.
Marketing and Distribution: Faced with the intensified marketing competition, the Company brought our advantages in integrated operation and distribution network into full play and coordinated internal and external resources. We proactively promoted precision marketing and differentiated marketing to achieve sustained growth in total domestic sales volume and retail business scale. We improved our environmental protection measures for our service station and revamped the storage and transportation facilities of refined oil products. We further promoted integration of fuel business and non-fuel business, perfected the system for self-owned brand products and accelerated the construction of integrated service stations. Our non-fuel business kept increasing rapidly. In the first three quarters, total sales volume of refined oil products was 148 million tonnes. Total domestic sales volume of refined oil products was 135 million tonnes, up by 1.3%. The operating revenues of non-fuel business reached RMB 24.250 billion, up by 13.4% compared with the same period last year. The Marketing and Distribution Segment realised an operating profit of RMB 23.389 billion, basically flat year on year.
Marketing and Distribution | Unit | For nine-month period ended 30 September | Changes (%) | |
2018 | 2017 | |||
Total sales volume of refined oil products | million tonnes | 147.78 | 150.23 | (1.6) |
Total domestic sales of refined oil products | million tonnes | 135.02 | 133.26 | 1.3 |
Retail | million tonnes | 90.82 | 90.67 | 0.2 |
Direct sales & Distribution | million tonnes | 44.20 | 42.60 | 3.8 |
Throughput per station4 | tonnes | 3,953 | 3,935 | 0.5 |
Note 4: Throughput per station was annualised.
Unit: stations
| As of 30 September 2018 | As of 31 December 2017 | Changes from the end of last year to the end of the reporting period (%) |
Total number of Sinopec-branded service stations | 30,643 | 30,633 | 0.03 |
Number of company-operated stations | 30,637 | 30,627 | 0.03 |
Number of convenience stores | 26,981 | 25,775 | 4.68 |
Chemicals: With the clients-oriented approach, we provided more products needed by the market through enhancing the dynamic optimisation of facilities and product chains and continued adjusting our product mix to reduce chemical feedstock cost and pressed ahead optimisation of product slate. We improved the coordination among mechanism combining production, marketing, research and application, advance new high-end products development, promotion and application. We put advantages of marketing network into full play and conducted differentiated and tailor-made measures to expand sales scale. We focused on value-added, green, and eco-friendly materials to satisfy clients' requirement on high quality. In the first three quarters, ethylene production reached 8.784 million tonnes, up by 2.9% and chemical sales volume was 64.98 million tonnes, up by 12.8% compared with the same period last year. The differential ratio of synthetic fibre reached 90.4% and ratio of specialty products of synthetic resin reached 64.0%. The Chemicals Segment realised an operating profit of RMB 23.944 billion, up by 43.1% compared with the same period last year.
Chemicals5 | Unit | For nine-month period ended 30 September | Changes (%) | |
2018 | 2017 | |||
Ethylene | thousand tonnes | 8,784 | 8,534 | 2.9 |
Synthetic resin | thousand tonnes | 12,171 | 11,791 | 3.2 |
Synthetic rubber | thousand tonnes | 646 | 642 | 0.6 |
Monomers and polymers for synthetic fibre | thousand tonnes | 7,100 | 7,061 | 0.6 |
Synthetic fibre | thousand tonnes | 940 | 923 | 1.8 |
Note 5: Including 100% production of domestic joint ventures.
Capital expenditure: In the first three quarters, total capital expenditures were RMB 48.012 billion. Capital expenditures for the exploration and production segment were RMB 19.761 billion, mainly for oil and gas capacity building, Wen 23 Gas Storage Project, Erdos-Anping-Cangzhou Gas Pipeline Project, the first phase of Xinqi Pipeline Project as well as overseas projects. Capital expenditures for the refining segment were RMB 9.689 billion, mainly for the Zhongke integrated refining and chemical project, product mix optimisation of Zhenhai, Maoming and Tianjin, GB VI gasoline and diesel quality upgrading projects, and crude oil pipeline construction of Rizhao-Puyang-Luoyang as well as other Pipeline Storage & Transportation construction. Capital expenditures for the marketing and distribution segment were RMB 9.712 billion, mainly for constructing refined oil products depots, pipelines and service stations and revamping of underground oil tanks, as well as other safety and environmental protection hazard removal projects. Capital expenditures for the chemicals segment were RMB 6.304 billion, mainly for integrated refining and basic chemical projects of Zhongke, Gulei, high-efficiency and environment-friendly aromatics project in Hainan, Zhong'an United Coal Chemical project and high-end value-added projects of Zhongsha PC, Yangzi EVA and Yizheng high-performance fibre. Capital expenditures for corporate and others were RMB 2.546 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 ASBE and the reasons for such changes.
Items of Consolidated Balance Sheet | 30 September 2018 | 31 December 2017 | Increase/(decrease) | Major reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Prepayments | 10,463 | 4,901 | 5,562 | 113 | Increase in the prepayment for land acquisition and fixed assets procurement of service stations. |
Employee benefits payable | 11,922 | 7,162 | 4,760 | 66 | The increased base of social insurance, housing fund and enterprise annuity payment in 2018. As the Company improved its profit significantly, income of employee was increased accordingly in line with its incentive mechanism. |
Tax Payable | 43,349 | 71,940 | (28,591) | (40) | 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. |
Specific reserve | 1,889 | 888 | 1,001 | 113 | The provision of safety production fund. |
Items of consolidated income statement | For nine-month period ended 30 September 2018 | For nine-month period ended 30 September 2017 | Increase/(decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Financial expenses | 632 | 1,790 | (1,158) | (64.7) | Increase in interest income from free cash flow operation as the Company strengthened cash flow management and optimised unused capital. |
Impairment losses | 728 | 7,090 | (6,362) | (89.7) | The impairment losses of fixed assets decreased compared with the same period last year. |
Tax expenses | 20,923 | 12,996 | 7,927 | 61.0 | Increase in taxable income and decrease in tax-exempt investment income compared with the same period last year |
Items of consolidated cash flow statement | For nine-month period ended 30 September 2018 | For nine-month period ended 30 September 2017 | Increase/(decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Cash received from disposal of investments | 49,695 | 894 | 48,801 | 99 | Increase in proceeds from sales of financial assets which are measured at fair value and whose changes are recorded into current period profit or loss. |
Cash received from returns on investments | 7,338 | 4,922 | 2,416 | 67 | Increase in investment income from associates and joint ventures. |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 8,490 | 530 | 7,960 | 106 | Subsidiary companies received relocation compensation and land disposal income from government. |
Other cash received relating to investing activities | 55,003 | 31,589 | 23,414 | 55 | Increase cash received from time deposits received at maturity compare with the same period last year. |
Cash paid for dividends, profits distribution or interest | (85,928) | (41,494) | (44,434) | 76 | Increase of dividends. |
3.2 This quarterly results announcement is published in both Chinese and English languages. In the event of any discrepancies, the Chinese version shall prevail.
By Order of the Board
Chairman, President
Dai Houliang
30 October 2018
4. Appendix
4.1 Quarterly financial statements prepared under China Accounting Standards for Business Enterprises ("ASBE")
Consolidated Balance Sheet | |||
as at 30 September 2018 | |||
Prepared by: China Petroleum & Chemical Corporation |
| ||
Units: million Currency: RMB Type: unaudited |
| ||
Items | At 30 September 2018 | At 31 December 2017 |
|
Current assets: |
|
|
|
Cash at bank and on hand | 228,938 | 165,004 |
|
Financial assets held for trading | 7,418 | 51,196 |
|
Bills receivable and accounts receivable | 105,194 | 84,701 |
|
Including：Bills receivable | 15,570 | 16,207 |
|
Accounts receivable | 89,624 | 68,494 |
|
Prepayments | 10,463 | 4,901 |
|
Other receivables | 25,653 | 16,467 |
|
Including：Interests receivable | 1,340 | 431 |
|
Dividends receivable | 271 | 366 |
|
Inventories | 213,398 | 186,693 |
|
Other current assets | 20,854 | 20,087 |
|
Total current assets | 611,918 | 529,049 |
|
Non-current assets: |
|
|
|
Available-for-sale financial assets | - | 1,676 |
|
Long-term equity investments | 140,055 | 131,087 |
|
Other equity instrument investments | 1,496 | - |
|
Fixed assets | 607,926 | 650,920 |
|
Construction in progress | 123,180 | 118,645 |
|
Intangible assets | 99,411 | 97,126 |
|
Goodwill | 8,680 | 8,634 |
|
Long-term deferred expenses | 14,443 | 14,720 |
|
Deferred tax assets | 19,912 | 15,131 |
|
Other non-current assets | 35,739 | 28,516 |
|
Total non-current assets | 1,050,842 | 1,066,455 |
|
Total assets | 1,662,760 | 1,595,504 |
|
|
|
|
| |
Current liability: |
|
| ||
Short-term loans | 69,864 | 54,701 | ||
Bills payable and accounts payable | 237,828 | 206,535 | ||
Advances from customers | - | 120,734 | ||
Contract liabilities | 138,257 | - | ||
Employee benefits payable | 11,922 | 7,162 | ||
Taxes payable | 43,349 | 71,940 | ||
Other payables | 94,991 | 91,693 | ||
Including：Interest payable | 1,191 | 723 | ||
Dividend payable | 660 | 6,843 | ||
Non-current liabilities due within one year | 24,342 | 26,681 | ||
Total current liabilities | 620,553 | 579,446 | ||
Non-current liabilities: |
|
| ||
Long-term loans | 70,972 | 67,754 | ||
Debentures payable | 31,977 | 31,370 | ||
Provisions | 42,147 | 39,958 | ||
Deferred tax liabilities | 5,906 | 6,466 | ||
Other non-current liabilities | 28,480 | 16,440 | ||
Total non-current liabilities | 179,482 | 161,988 | ||
Total liabilities | 800,035 | 741,434 | ||
Shareholders' equity: |
|
| ||
Share capital | 121,071 | 121,071 | ||
Capital reserve | 119,549 | 119,557 | ||
Other comprehensive income | (1,677) | (4,413) | ||
Specific reserve | 1,889 | 888 | ||
Surplus reserves | 199,682 | 199,682 | ||
Retained earnings | 281,803 | 290,459 | ||
Total equity attributable to shareholders of the Company | 722,317 | 727,244 | ||
Minority interests | 140,408 | 126,826 | ||
Total shareholders' equity | 862,725 | 854,070 | ||
Total liabilities and shareholders' equity | 1,662,760 | 1,595,504 | ||
Dai Houliang Wang Dehua |
|
| ||
Chairman, President Chief Financial Officer |
| |||
Balance Sheet | ||
as at 30 September 2018 | ||
Prepared by: China Petroleum & Chemical Corporation |
| |
Units: million Currency: RMB Type: unaudited | ||
Items | At 30 September 2018 | At 31 December 2017 |
Current assets： |
|
|
Cash at bank and on hand | 120,897 | 92,545 |
Financial assets held for trading | 2,008 | 48,179 |
Bills receivable and accounts receivable | 31,861 | 37,766 |
Including：Bills receivable | 786 | 157 |
Accounts receivable | 31,075 | 37,609 |
Prepayments | 5,163 | 4,429 |
Other receivables | 54,496 | 63,820 |
Including：Interest receivable | 909 | 331 |
Dividend receivable | 3,130 | 16,327 |
Inventories | 50,379 | 44,933 |
Other current assets | 17,152 | 27,189 |
Total current assets | 281,956 | 318,861 |
Non-current assets： |
|
|
Available-for-sale financial assets | - | 395 |
Long-term equity investments | 280,645 | 275,557 |
Other equity instrument investments | 395 | - |
Fixed assets | 301,903 | 329,814 |
Construction in progress | 48,621 | 50,046 |
Intangible assets | 8,383 | 8,340 |
Long-term deferred expenses | 2,286 | 1,958 |
Deferred tax assets | 10,636 | 6,834 |
Other non-current assets | 9,717 | 10,690 |
Total non-current assets | 662,586 | 683,634 |
Total assets | 944,542 | 1,002,495 |
Current liabilities： |
|
|
Short-term loans | 13,751 | 17,330 |
Bills payable and accounts payable | 96,194 | 86,604 |
Advances from customers | - | 3,413 |
Contract liabilities | 3,715 | - |
Employee benefits payable | 7,167 | 4,854 |
Taxes payable | 28,435 | 42,549 |
Other payables | 129,731 | 143,274 |
Including：Dividend payable | 944 | 576 |
Short-term debentures payable | 21,298 | 19,539 |
Total current liabilities | 300,291 | 317,563 |
|
|
|
Non-current liabilities： |
|
|
Long-term loans | 59,616 | 63,667 |
Debentures payable | 20,000 | 20,000 |
Provisions | 32,523 | 31,405 |
Other non-current liabilities | 2,903 | 2,591 |
Total non-current liabilities | 115,042 | 117,663 |
Total liabilities | 415,333 | 435,226 |
Shareholders' equity： |
|
|
Share capital | 121,071 | 121,071 |
Capital reserve | 68,794 | 68,789 |
Other comprehensive income | 210 | 196 |
Specific reserve | 1,020 | 482 |
Surplus reserves | 199,682 | 199,682 |
Retained earnings | 138,432 | 177,049 |
Total shareholders' equity | 529,209 | 567,269 |
Total liabilities and shareholders' equity | 944,542 | 1,002,495 |
Dai Houliang Wang Dehua Chairman, President Chief Financial Officer | ||
Consolidated Income Statement
for the nine-month periods ended 30 September 2018
Prepared by: China Petroleum & Chemical Corporation | |||||
Units: million Currency: RMB Type: unaudited |
| ||||
Items | Three-month periods ended 30 September 2018 | Three-month periods ended 30 September 2017 | Nine-month periods ended 30 September 2018 | Nine-month periods ended 30 September 2017 |
|
I. Operating income | 772,718 | 579,118 | 2,072,970 | 1,744,955 |
|
II. Total Operating costs | 749,631 | 564,133 | 1,989,444 | 1,694,797 |
|
Including: Operating costs | 645,961 | 462,954 | 1,696,680 | 1,405,556 |
|
Taxes and surcharges | 64,824 | 60,032 | 183,545 | 176,329 |
|
Selling and distribution expenses | 15,057 | 14,173 | 42,718 | 40,128 |
|
General and administrative expenses | 18,817 | 18,514 | 52,725 | 51,745 |
|
Research and development costs | 1,641 | 2,572 | 5,721 | 5,244 |
|
Financial expenses | 369 | 501 | 632 | 1,790 |
|
Exploration expenses, including dry holes | 2,357 | 2,373 | 6,719 | 6,915 |
|
Impairment losses | 591 | 3,014 | 728 | 7,090 |
|
Credit impairment losses | 14 | - | (24) | - |
|
Add: Other income | 1,628 | 1,292 | 3,477 | 2,613 |
|
Investment income | 3,819 | 3,868 | 9,703 | 12,020 |
|
Gains from changes in fair value | 926 | 162 | 476 | 531 |
|
Asset disposal (expense)/income | (143) | (121) | 75 | (219) |
|
|
|
|
|
|
|
III. Operating profit | 29,317 | 20,186 | 97,257 | 65,103 |
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Add: Non-operating income | 270 | 282 | 900 | 1,023 |
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Less: Non-operating expenses | 752 | 675 | 1,455 | 1,301 |
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IV. Profit before taxation | 28,835 | 19,793 | 96,702 | 64,825 |
|
Less: Income tax expense | 6,337 | 4,081 | 20,923 | 12,996 |
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V. Net profit | 22,498 | 15,712 | 75,779 | 51,829 |
|
Classification by going concern: |
|
|
|
|
|
(i) Continuous operating net profit | 22,498 | 15,712 | 75,779 | 51,829 |
|
(ii) Termination of net profit | - | - | - | - |
|
Classification by ownership: |
|
|
|
|
|
(i)Equity shareholders of the Company | 18,380 | 11,281 | 59,980 | 38,373 |
|
(ii) Minority interests | 4,118 | 4,431 | 15,799 | 13,456 |
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VI. Other comprehensive income | 3,619 | (2,083) | 3,877 | (3,193) |
|
Items that may not be reclassified subsequently to profit or loss: |
|
|
|
|
|
Changes in fair value of other equity instrument investments | 3 | - | (14) | - |
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
Other comprehensive income that can be converted into profit or loss under the equity method | (172) | (12) | (285) | 265 |
|
Changes in fair value of available-for-sale financial assets | - | - | - | (7) |
|
Cash flow hedges reserve | 1,092 | (766) | 584 | (604) |
|
Foreign currency translation differences | 2,696 | (1,305) | 3,592 | (2,847) |
|
VII. Total comprehensive income | 26,117 | 13,629 | 79,656 | 48,636 |
|
Attributable to: |
|
|
|
|
|
Equity shareholders of the Company | 21,125 | 9,608 | 62,728 | 36,058 |
|
Minority interests | 4,992 | 4,021 | 16,928 | 12,578 |
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VIII. Earnings per share: |
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|
|
|
|
(i) Basic earnings per share (RMB/Share) | 0.151 | 0.093 | 0.495 | 0.317 |
|
(ii) Diluted earnings per share (RMB/Share) | 0.151 | 0.093 | 0.495 | 0.317 |
|
Dai Houliang Wang Dehua
Chairman, President Chief Financial Officer
Income Statement
for the nine-month periods ended 30 September 2018
Prepared by: China Petroleum & Chemical Corporation | |||||
Units: million Currency: RMB Type: unaudited |
| ||||
Items | Three-month periods ended 30 September 2018 | Three-month periods ended 30 September 2017 | Nine-month periods ended 30 September 2018 | Nine-month periods ended 30 September 2017 |
|
I.Operating income | 279,491 | 205,403 | 774,103 | 616,813 |
|
Less: Operating costs | 220,145 | 151,418 | 589,706 | 457,921 |
|
Taxes and surcharges | 43,702 | 40,001 | 126,747 | 117,325 |
|
Selling and distribution expenses | 833 | 669 | 2,238 | 1,949 |
|
General and administrative expenses | 9,269 | 9,049 | 26,079 | 26,052 |
|
Research and development costs | 1,385 | 2,432 | 5,273 | 4,938 |
|
Financial expenses | 322 | 642 | 1,711 | 2,037 |
|
Exploration expenses, including dry holes | 2,232 | 2,348 | 6,405 | 6,491 |
|
Impairment losses | 29 | 1,433 | 78 | 5,114 |
|
Credit impairment losses | (1) | - | (15) | - |
|
Add: Other income | 677 | 718 | 1,270 | 1,076 |
|
Investment income | 7,925 | 2,869 | 17,786 | 11,742 |
|
Losses from changes in fair value | - | - | (171) | - |
|
Asset disposal income | (27) | (25) | 225 | (143) |
|
|
|
|
|
|
|
II. Operating profit | 10,150 | 973 | 34,991 | 7,661 |
|
Add: Non-operating income | 94 | 107 | 239 | 410 |
|
Less: Non-operating expenses | 412 | 296 | 701 | 636 |
|
III. Profit before taxation | 9,832 | 784 | 34,529 | 7,435 |
|
Less: Income tax expense | 438 | (402) | 4,520 | 76 |
|
IV. Net profit | 9,394 | 1,186 | 30,009 | 7,359 |
|
(i) Continuous operating net profit | 9,394 | 1,186 | 30,009 | 7,359 |
|
(ii) Termination of net profit | - | - | - | - |
|
V. Other comprehensive income | 14 | 45 | 14 | 56 |
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
Other comprehensive loss that can be converted into profit or loss under the equity method | 14 | (10) | 14 | (21) |
|
Cash flow hedges | - | 55 | - | 77 |
|
VI. Total comprehensive income | 9,408 | 1,231 | 30,023 | 7,415 |
|
Dai Houliang Wang Dehua
Chairman, President Chief Financial Officer
Consolidated Cash Flow Statement | |||
for the nine-month periods ended 30 September 2018 | |||
Prepared by: China Petroleum & Chemical Corporation |
|
| |
Units: million Currency: RMB Type: unaudited |
| ||
Items | Nine-month periods ended 30 September 2018 | Nine-month periods ended 31 March 2017 |
|
I. Cash flows from operating activities: |
|
|
|
Cash received from sale of goods and rendering of services | 2,310,756 | 1,976,601 |
|
Refund of taxes and levies | 1,208 | 1,475 |
|
Other cash received relating to operating activities | 57,437 | 45,260 |
|
Sub-total of cash inflows | 2,369,401 | 2,023,336 |
|
Cash paid for goods and services | (1,810,925) | (1,534,680) |
|
Cash paid to and for employees | (49,995) | (44,390) |
|
Payments of taxes and levies | (288,801) | (267,888) |
|
Other cash paid relating to operating activities | (81,761) | (65,185) |
|
Sub-total of cash outflows | (2,231,482) | (1,912,143) |
|
Net cash flow from operating activities | 137,919 | 111,193 |
|
II. Cash flows from investing activities: |
|
|
|
Cash received from disposal of investments | 49,695 | 894 |
|
Cash received from returns on investments | 7,338 | 4,922 |
|
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 8,490 | 530 |
|
Net cash received from disposal of subsidiaries and other business entities | - | 1 |
|
Other cash received relating to investing activities | 55,003 | 31,589 |
|
Sub-total of cash inflows | 120,526 | 37,936 |
|
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (54,464) | (43,992) |
|
Cash paid for acquisition of investments | (10,551) | (4,914) |
|
Net cash paid for the acquisition of subsidiaries and other business entities | (3,188) | (44) |
|
Other cash paid relating to investing activities | (55,593) | (59,091) |
|
Sub-total of cash outflows | (123,796) | (108,041) |
|
Net cash flow from investing activities | (3,270) | (70,105) |
|
III. Cash flows from financing activities: |
|
|
|
Cash received from capital contributions | 874 | 853 |
|
Including: Cash received from minority shareholders' capital contributions to subsidiaries | 868 | 853 |
|
Cash received from borrowings | 526,630 | 361,470 |
|
Sub-total of cash inflows | 527,504 | 362,323 |
|
Cash repayments of borrowings | (517,451) | (371,045) |
|
Cash paid for dividends, profits distribution or interest | (85,928) | (41,494) |
|
Including: Subsidiaries' cash payments for distribution of dividends or profits to minority shareholders | (15,783) | (4,476) |
|
Other cash paid relating to financing activities | (23) | - |
|
Sub-total of cash outflows | (603,402) | (412,539) |
|
Net cash flow from financing activities | (75,898) | (50,216) |
|
IV. Effects of changes in foreign exchange rate | 315 | (188) |
|
V. Net increase in cash and cash equivalents | 59,066 | (9,316) |
|
Add：Initial balance of cash and cash equivalents | 113,218 | 124,468 |
|
VI. Ending balance of cash and cash equivalents | 172,284 | 115,152 |
|
Dai Houliang Wang Dehua
Chairman, President Chief Financial Officer
Cash Flow Statement | ||
for the nine-month periods ended 30 September 2018 | ||
Prepared by: China Petroleum & Chemical Corporation |
| |
Units: million Currency: RMB Type: unaudited | ||
Items | Nine-month periods ended 30 September 2018 | Nine-month periods ended 31 March 2017 |
I. Cash flows from operating activities: |
|
|
Cash received from sale of goods and rendering of services | 902,672 | 726,478 |
Refund of taxes and levies | 768 | 917 |
Other cash received relating to operating activities | 18,654 | 33,412 |
Sub-total of cash inflows | 922,094 | 760,807 |
Cash paid for goods and services | (626,237) | (478,741) |
Cash paid to and for employees | (27,990) | (24,467) |
Payments of taxes and levies | (184,068) | (168,152) |
Other cash paid relating to operating activities | (10,499) | (25,730) |
Sub-total of cash outflows | (848,794) | (697,090) |
Net cash flow from operating activities | 73,300 | 63,717 |
II. Cash flows from investing activities: |
|
|
Cash received from disposal of investments | 57,769 | 9,022 |
Cash received from returns on investments | 30,145 | 14,025 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 477 | 706 |
Net cash received from disposal of subsidiaries and other business entities | - | 1 |
Other cash received relating to investing activities | 20,175 | 20,370 |
Sub-total of cash inflows | 108,566 | 44,124 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (28,910) | (23,811) |
Cash paid for acquisition of investments | (7,407) | (10,128) |
Other cash paid relating to investing activities | (10,183) | (25,040) |
Sub-total of cash outflows | (46,500) | (58,979) |
Net cash flow from investing activities | 62,066 | (14,855) |
III. Cash flows from financing activities: |
|
|
Cash received from borrowings | 98,500 | 85,212 |
Sub-total of cash inflows | 98,500 | 85,212 |
Cash repayments of borrowings | (126,626) | (103,768) |
Cash paid for dividends or interest | (68,911) | (36,164) |
Sub-total of cash outflows | (195,537) | (139,932) |
Net cash flow from financing activities | (97,037) | (54,720) |
IV. Net increase in cash and cash equivalents | 38,329 | (5,858) |
Add：Initial balance of cash and cash equivalents | 72,309 | 88,120 |
V. Ending balance of cash and cash equivalents | 110,638 | 82,262 |
Dai Houliang Wang Dehua
Chairman, President Chief Financial Officer
Segement Reporting
for the nine-month periods ended 30 September 2018
Prepared by: China Petroleum & Chemical Corporation |
| |
Units: million Currency: RMB Type: unaudited | ||
Items | Nine-month periods ended 30 September 2018 | Nine-month periods ended 31 March 2017 |
Income from principal operations |
|
|
Exploration and production |
|
|
External sales | 62,271 | 48,701 |
Inter-segment sales | 71,033 | 55,769 |
Subtotal | 133,304 | 104,470 |
Refining |
|
|
External sales | 109,029 | 96,041 |
Inter-segment sales | 820,020 | 636,726 |
Subtotal | 929,049 | 732,767 |
Marketing and distribution |
|
|
External sales | 1,028,274 | 886,263 |
Inter-segment sales | 4,092 | 2,567 |
Subtotal | 1,032,366 | 888,830 |
Chemicals |
|
|
External sales | 344,753 | 272,418 |
Inter-segment sales | 46,626 | 36,418 |
Subtotal | 391,379 | 308,836 |
Corporate and others |
|
|
External sales | 480,879 | 398,780 |
Inter-segment sales | 458,916 | 320,750 |
Subtotal | 939,795 | 719,530 |
Elimination of inter-segment sales | (1,400,687) | (1,052,230) |
Consolidated income from principal operations | 2,025,206 | 1,702,203 |
Income from other operations |
|
|
Exploration and production | 6,656 | 5,707 |
Refining | 3,774 | 3,454 |
Marketing and distribution | 24,944 | 22,309 |
Chemicals | 11,400 | 10,336 |
Corporate and others | 990 | 946 |
Consolidated income from other operations | 47,764 | 42,752 |
Consolidated operating income | 2,072,970 | 1,744,955 |
Operating (loss)/ profit |
|
|
By segment |
|
|
Exploration and production | (2,017) | (27,592) |
Refining | 53,675 | 42,370 |
Marketing and distribution | 23,784 | 23,070 |
Chemicals | 23,280 | 16,462 |
Corporate and others | (7,124) | (1,150) |
Elimination | (7,440) | (1,212) |
Total segment operating profit | 84,158 | 51,948 |
Investment income |
|
|
Exploration and production | 2,066 | 1,494 |
Refining | 604 | 546 |
Marketing and distribution | 1,848 | 2,208 |
Chemicals | 4,795 | 6,634 |
Corporate and others | 390 | 1,138 |
Total segment investment income | 9,703 | 12,020 |
Financial expenses | (632) | (1,790) |
Gain from changes in fair value | 476 | 531 |
Gain/(loss) from asset disposal | 75 | (219) |
Other income | 3,477 | 2,613 |
Operating profit | 97,257 | 65,103 |
Add: Non-operating income | 900 | 1,023 |
Less: Non-operating expenses | 1,455 | 1,301 |
Profit before taxation | 96,702 | 64,825 |
4.2 Quarterly financial statements prepared under International Financial Reporting Standards ("IFRS")
Consolidated Income Statement
for the nine-month periods ended 30 September 2018
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited | ||||
Items | Three-month periods ended 30 September 2018 | Three-month periods ended 30 September 2017 | Nine-month Periods ended 30 September 2018 | Nine-month Periods ended 30 September 2017 |
Turnover and other operating revenues |
|
|
|
|
Turnover | 756,403 | 564,375 | 2,025,206 | 1,702,203 |
Other operating revenues | 16,315 | 14,743 | 47,764 | 42,752 |
Subtotal | 772,718 | 579,118 | 2,072,970 | 1,744,955 |
Operating expenses |
|
|
|
|
Purchased crude oil, products and operating supplies and expenses | (619,364) | (434,997) | (1,614,161) | (1,322,025) |
Selling, general and administrative expenses | (16,182) | (18,104) | (47,514) | (48,235) |
Depreciation, depletion and amortisation | (28,146) | (27,454) | (80,048) | (82,671) |
Exploration expenses, including dry holes | (2,357) | (2,373) | (6,719) | (6,915) |
Personnel expenses | (17,656) | (17,446) | (54,996) | (48,774) |
Taxes other than income tax | (64,824) | (60,032) | (183,545) | (176,329) |
Other operating income/(expense), net | 100 | (2,264) | (122) | (4,249) |
Total operating expenses | (748,429) | (562,670) | (1,987,105) | (1,689,198) |
Operating profit | 24,289 | 16,448 | 85,865 | 55,757 |
Finance costs |
|
|
|
|
Interest expense | (2,053) | (1,870) | (6,025) | (5,849) |
Interest income | 2,022 | 1,437 | 5,529 | 3,894 |
Foreign currency exchange (losses)/gains, net | (338) | (68) | (136) | 165 |
Net finance costs | (369) | (501) | (632) | (1,790) |
Investment income | 53 | 130 | 893 | 416 |
Share of profits less losses from associates and joint ventures | 4,273 | 3,960 | 10,891 | 11,611 |
Profit before taxation | 28,246 | 20,037 | 97,017 | 65,994 |
Income tax expense | (6,337) | (4,081) | (20,923) | (12,996) |
Profit for the period | 21,909 | 15,956 | 76,094 | 52,998 |
Attributable to: |
|
|
|
|
Shareholders of the Company | 17,769 | 11,489 | 60,155 | 39,404 |
Non-controlling interests | 4,140 | 4,467 | 15,939 | 13,594 |
Profit for the period | 21,909 | 15,956 | 76,094 | 52,998 |
Earnings per share |
|
|
|
|
Basic | 0.147 | 0.094 | 0.497 | 0.325 |
Diluted | 0.147 | 0.094 | 0.497 | 0.325 |
Consolidated of Comprehensive Income
for the nine-month periods ended 30 September 2018
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited | ||||
Item | Three month periods ended 30 September 2018 | Three month periods ended 30 September 2017 | Nine month periods ended 30 September 2018 | Nine month periods ended 30 September 2017 |
Profit for the period | 21,909 | 15,956 | 76,094 | 52,998 |
Other comprehensive income: | 3,619 | (2,083) | 3,877 | (3,193) |
Items that maynot be reclassified subsequently to profit or loss |
|
|
|
|
Financial assets at fair value through other comprehensive income | 3 | - | (14) | - |
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
Cash flow hedges | 1,092 | (766) | 584 | (604) |
Available-for-sale securities | - | 0 | - | (7) |
Share of other comprehensive income of associates and joint ventures | (172) | (12) | (285) | 265 |
Foreign currency translation differences | 2,696 | (1,305) | 3,592 | (2,847) |
Total other comprehensive income | 25,528 | 13,873 | 79,971 | 49,805 |
Attributable to: |
|
|
|
|
Shareholders of the Company | 20,514 | 9,816 | 62,903 | 37,089 |
Non-controlling interests | 5,014 | 4,057 | 17,068 | 12,716 |
Consolidated Balance Sheet
for the nine-month periods ended 30 September 2018
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited | ||
Items | As at 30 September 2018 | At 31 December 2017 |
Non-current assets： |
|
|
Property, plant and equipment, net | 607,900 | 650,774 |
Construction in progress | 123,180 | 118,645 |
Goodwill | 8,680 | 8,634 |
Interest in associates | 84,630 | 79,726 |
Interest in joint ventures | 55,425 | 51,361 |
Available-for-sale financial assets | - | 1,676 |
Financial assets at fair value through other comprehensive income | 1,496 | - |
Deferred tax assets | 19,912 | 15,131 |
Lease prepayments | 60,420 | 58,526 |
Long-term prepayments and other assets | 89,199 | 81,982 |
Total non-current assets | 1,050,842 | 1,066,455 |
Current assets |
|
|
Cash and cash equivalents | 172,284 | 113,218 |
Time deposits with financial institutions | 56,654 | 51,786 |
Financial assets at fair value through profit or loss | 7,418 | 51,196 |
Trade accounts receivable | 89,624 | 68,494 |
Bills receivable | 15,570 | 16,207 |
Inventories | 213,398 | 186,693 |
Prepaid expenses and other current assets | 56,970 | 41,455 |
Total current assets | 611,918 | 529,049 |
|
|
|
Current liabilities： |
|
|
Short-term debts | 56,326 | 55,338 |
Loans from Sinopec Group Company and fellow subsidiaries | 37,880 | 25,311 |
Trade accounts payable | 230,681 | 200,073 |
Contract liabilities | 138,257 | - |
Bills payable | 7,147 | 6,462 |
Other payables | 140,072 | 279,247 |
Income tax payable | 10,190 | 13,015 |
Total current liabilities | 620,553 | 579,446 |
Net current liabilities | (8,635) | (50,397) |
Total assets less current liabilities | 1,042,207 | 1,016,058 |
Non-current liabilities |
|
|
Long-term debts | 54,883 | 55,804 |
Loans from Sinopec Group Company and fellow subsidiaries | 48,066 | 43,320 |
Deferred tax liabilities | 5,906 | 6,466 |
Provisions | 42,147 | 39,958 |
Other long-term liabilities | 29,589 | 17,620 |
Total non-current liabilities | 180,591 | 163,168 |
Total net assets | 861,616 | 852,890 |
Equity： |
|
|
Share capital | 121,071 | 121,071 |
Reserves | 600,190 | 605,049 |
Total equity attributable to shareholders of the Company | 721,261 | 726,120 |
Non-controlling interests | 140,355 | 126,770 |
Total equity | 861,616 | 852,890 |
Consolidated Statement of Cash Flows
for the nine-month periods ended 30 September 2018
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited | ||
Items | Nine-month periods ended 30 September 2018 | Nine-month periods ended 30 September 2017 |
Net cash generated from operating activities（a） | 137,919 | 111,193 |
Investing activities |
|
|
Capital expenditure | (50,466) | (40,238) |
Exploratory wells expenditure | (3,998) | (3,754) |
Purchase of investments, investments in associates and investments in joint ventures | (6,551) | (4,958) |
Payments for financial assets at fair value through profit or loss | (4,000) | - |
Proceeds from sale of financial assets at fair value through profit or loss | 48,000 | - |
Payment for acquisition of subsidiary, net of cash acquired | (3,188) | - |
Proceeds from disposal of investments and investments in associates | 1,695 | 895 |
Proceeds from disposal of property, plant, equipment and other non-current assets | 8,490 | 530 |
Increase in time deposits with maturities over three months | (53,357) | (58,841) |
Decrease in time deposits with maturities over three months | 50,080 | 30,119 |
Interest received | 2,687 | 1,220 |
Investment and dividend income received | 7,338 | 4,922 |
Net cash generated used in investing activities | (3,270) | (70,105) |
Financing activities |
|
|
Proceeds from bank and other loans | 526,630 | 361,470 |
Repayments of bank and other loans | (517,451) | (371,045) |
Contributions to subsidiaries from non-controlling interests | 874 | 853 |
Dividends paid by the Company | (67,800) | (32,693) |
Distributions by subsidiaries to non-controlling interests | (14,006) | (4,476) |
Interest paid | (4,122) | (4,325) |
Payments to non-controlling interests due to capital reduction of subsidiaries | (23) | - |
Net cash used in financing activities | (75,898) | (50,216) |
Net increase in cash and cash equivalents | 58,751 | (9,128) |
Cash and cash equivalents at 1 January | 113,218 | 124,468 |
Effect of foreign currency exchange rate changes | 315 | (188) |
Cash and cash equivalents at 30 September | 172,284 | 115,152 |
Note to consolidated statement of Cash Flows
for the nine-month periods ended 30 September 2018
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 periods ended 30 September 2018 | Nine-month periods ended 30 September 2017 |
Operating activities |
|
|
Profit before taxation | 97,017 | 65,994 |
Adjustments for: |
|
|
Depreciation, depletion and amortisation | 80,048 | 82,671 |
Dry hole costs written off | 5,534 | 5,953 |
Share of profits from associates and joint ventures | (10,891) | (11,611) |
Investment income | (893) | (416) |
Interest income | (5,529) | (3,894) |
Interest expense | 6,025 | 5,849 |
Loss/(gain) on foreign currency exchange rate changes and derivative financial instruments | 5,465 | (1,131) |
(Gain)/loss on disposal of property, plant, equipment and other non-currents assets, net | (75) | 219 |
Impairment losses on assets | 704 | 7,090 |
Operating profit before change of operating capital | 177,405 | 150,724 |
Accounts receivable and other current assets | (81,391) | (3,608) |
Inventories | (43,745) | (4,561) |
Accounts payable and other current liabilities | 115,295 | (13,609) |
Subtotal | 167,564 | 128,946 |
Income tax paid | (29,645) | (17,753) |
Net cash generated from operating activities | 137,919 | 111,193 |
Segment Reporting
for the nine-month periods ended 30 September 2018
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited | ||
Items | Nine-month periods ended 30 September 2018 | Nine-month periods ended 30 September 2017 |
Turnover |
|
|
Exploration and production |
|
|
External sales | 62,271 | 48,701 |
Inter-segment sales | 71,033 | 55,769 |
| 133,304 | 104,470 |
Refining |
|
|
External sales | 109,029 | 96,041 |
Inter-segment sales | 820,020 | 636,726 |
| 929,049 | 732,767 |
Marketing and distribution |
|
|
External sales | 1,028,274 | 886,263 |
Inter-segment sales | 4,092 | 2,567 |
| 1,032,366 | 888,830 |
Chemicals |
|
|
External sales | 344,753 | 272,418 |
Inter-segment sales | 46,626 | 36,418 |
| 391,379 | 308,836 |
Corporate and others |
|
|
External sales | 480,879 | 398,780 |
Inter-segment sales | 458,916 | 320,750 |
| 939,795 | 719,530 |
Elimination of inter-segment sales | (1,400,687) | (1,052,230) |
Turnover | 2,025,206 | 1,702,203 |
Other operating revenues |
|
|
Exploration and production | 6,656 | 5,707 |
Refining | 3,774 | 3,454 |
Marketing and distribution | 24,944 | 22,309 |
Chemicals | 11,400 | 10,336 |
Corporate and others | 990 | 946 |
Other operating revenues | 47,764 | 42,752 |
Turnover and other operating revenues | 2,072,970 | 1,744,955 |
|
|
|
Result |
|
|
Operating (loss)/ profit |
|
|
By segment |
|
|
- Exploration and production | (1,081) | (26,523) |
- Refining | 54,680 | 43,854 |
- Marketing and distribution | 23,389 | 23,482 |
- Chemicals | 23,944 | 16,727 |
- Corporate and others | (7,627) | (571) |
- Elimination | (7,440) | (1,212) |
Total segment operating profit | 85,865 | 55,757 |
Share of profits from associates and joint ventures |
|
|
- Exploration and production | 2,064 | 1,446 |
- Refining | 583 | 525 |
- Marketing and distribution | 2,255 | 2,068 |
- Chemicals | 4,733 | 6,430 |
- Corporate and others | 1,256 | 1,142 |
Aggregate share of profits from associates and joint ventures | 10,891 | 11,611 |
Investment income |
|
|
- Exploration and production | 2 | 48 |
- Refining | 16 | 21 |
- Marketing and distribution | 30 | 108 |
- Chemicals | 36 | 204 |
- Corporate and others | 809 | 35 |
Aggregate investment income | 893 | 416 |
Net finance costs | (632) | (1,790) |
Profit before taxation | 97,017 | 65,994 |
4.3 Differences between Financial Statements prepared in accordance with the accounting policies complying with ASBE 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 ASBE 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 ASBE, 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 ASBE, 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 ASBE and the profit for the year under
IFRS are analysed as follows:
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month periods ended 30 September 2018 | Nine-month periods ended 30 September 2017 |
Net profit under ASBE | 75,779 | 51,829 |
Adjustments: |
|
|
Government grants | 71 | 83 |
Safety production fund | 1,140 | 1,086 |
Others | (896) | - |
Profit for the year under IFRS | 76,094 | 52,998 |
Effects of major differences between the shareholders' equity under ASBE and the total equity under
IFRS are analysed as follows:
Units: million Currency: RMB Type: unaudited
Items | At 30 September 2018 | At 31 December 2017 |
Shareholders' equity under ASBE | 862,725 | 854,070 |
Adjustments: |
|
|
Government grants | (1,109) | (1,180) |
Total equity under IFRS | 861,616 | 852,890 |