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Sinopec First Quarter 2021 Results

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   |    Friday,May 07,2021

China Petroleum & Chemical Corp. reported its Q1 2021 results.

Financial Highlights:

• In accordance with the IFRS, the Company's operating income for the first quarter was RMB 576.982 billion, up by 4.1% year on year; the net profit attributable to shareholders of the Company was RMB 18.543 billion; the basic earnings per share were RMB 0.153.
• In accordance with the CASs, the net profit attributable to equity shareholders of the Company for the first quarter was RMB 17.929 billion; the basic earnings per share were RMB 0.148.
• Achieving a turnaround from loss to profit as compared with the same period in 2020, and better than that of the same period in 2019.
• In accordance with the IFRS, the Company had cash and cash equivalents (including time deposits) of RMB198.086 billion as at 31 March 2021.

Operating Review

In the first quarter of 2021, the effects of global epidemic prevention and control have gradually emerged and China's economy maintained recovery growth with gross domestic product (GDP) up by 18.3%. The spot price of Platt's Brent for the first quarter averaged USD 60.9 per barrel, up by 21.2% year on year. The domestic demand for refined oil products recovered steadily and demand for natural gas and chemical products maintained rapid growth.

The company expedited to implement new development concepts and world-leading development strategies and implement the "One Foundation of energy and resources, Two wings of clean fuels and advanced chemicals and Three Growth Engines in new energy, new materials and new economy" industrial deployment pattern. To promote the efficiency and profitability of the whole industrial chain and comprehensively promote high-quality development, the Company actively responded to market changes and optimized production and operations arrangements and achieved good performance.

In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB 18.543 billion. In accordance with China Accounting Standards for Business Enterprises, net profit attributable to equity shareholders of the Company was RMB 17.929 billion, achieving a turnaround from loss to profit as compared with the same period in 2020, and better than that of the same period in 2019.

Exploration and Production: The Company continuously pressed ahead with high-efficiency exploration and profit-oriented development, accelerated systematic construction of natural gas production, supply, storage and marketing and achieved tangible results in maintaining oil production, increasing gas output and cutting cost. In exploration, we continued to strengthen risk exploration in strategic areas, oil and gas rich zones and shale resources, which led to significant breakthrough of oil and gas explorations in Shunbei, Sichuan basin and etc. In crude oil development, we efficiently proceeded with the capacity building of Shunbei, west rim of Jungar oilfields and other oilfields and strengthened fine development in mature fields and intensified EOR technology application to consolidate the basis for steady production. In natural gas development, we constantly pushed forward capacity building in West Sichuan, Weirong and Dongsheng gas fields and expanded the market and sales with the sales volume for the first quarter up by 37% year on year. In the first quarter, the Company's production of oil and gas reached 117.03 million barrels of oil equivalent, up by 4.2% year on year, with natural gas production reaching 291.60 billion cubic feet, up by 16.8% year on year. The exploration and production segment realised earnings before interest and taxes (EBIT) of RMB 3.072 billion in the first quarter, up by 54.1%.