ENP Newswire -
Release date- 23082014 -
In accordance with the International Financial Reporting Standards (IFRS), in the first half of 2014, the Company's turnover, other operating revenues and other income was
In accordance with the PRC Accounting Standards for
Net cash flows from operating activities were
The Board of Directors proposed an interim dividend of
In the first half of 2014, global economic growth slowed down while
The Company achieved further progress in domestic oil and gas exploration and development.
Benefitting from further optimized production structure and increased production of high value-added oil products production such as GB IV & GB V gasoline & diesel production, the refining margin rose 43.4% in the first half of 2014 on a year-on-year basis.
In the first half of 2014,
Fu Chengyu, Chairman of
Exploration and Production
In the first half of 2014,
In unconventional resource development, we maintained our fast track momentum in the construction of shale gas capacity in Fuling in the
In the first half of 2014, our oil and gas production was 237.01 million barrels of oil equivalent, up 8.00% from the same period in 2013, of which crude oil was 177.88 million barrels, representing an increase of 7.52% from the same period last year, and natural gas output was 354.8 billion cubic meters, an increase of 9.46%.
Due to lower crude oil realisation and lower overseas sales volumes due to maintenance to our
In the first half of 2014, we adjusted our refinery products mix in response to changes in domestic demand; optimised resource allocation and reduced procurement costs of crude oil; strengthened coordination of production and marketing to increase production and export of gasoline, jet fuel and other high-value-added products. We actively promoted quality upgrading in our oil products and significantly increased output of GB IV standard diesel.
We took advantage of our centralised marketing for other oil products and increased sales of LPG, asphalt and petroleum wax. In the first half of 2014, we processed 116 million tonnes of crude oil, up 0.32% year-on-year, and increased oil product output by 2.68%, of which gasoline production was up by 9.63%, kerosene up by 19.74% and light yield up by 0.63 percentage points.
Operating revenue for the refining segment was
Marketing and Distribution
In the first half of 2014, we carried out the restructuring and reform of our marketing business as planned. We established
In light of sufficient market supply and fierce competition, we focused on resource allocation and optimised our marketing strategies to concentrate on premium products. We focused on our customer base and the retail market, enhancing the comprehensive services at
In the first half of 2014, the total sales volume of oil products grew by 0.2% to 88.26 million tonnes, of which domestic sales were 81.04 million tonnes, up 0.4% from the previous year. Retail volume increased by 1.9% to 56.55 million tonnes. Sales from our non-fuel business reached
Operating income of the segment was
In the first half of 2014, facing oversupply in the market, high and volatile feedstock costs and a continued decline in chemical prices, we adjusted our feedstock and product mix as well as the configuration of facilities in order to process more low-cost, light feedstock into high-value-added products. In addition, we strengthened our efforts in the research, development, production and marketing of new products, integrated production with marketing and research and optimised the utilisation rate of facilities while shutting down non-profitable units.
Furthermore, we strengthened our supply-chain management to ensure stable production and sales. In the first half of 2014, ethylene production reached 5.084 million tonnes, up 5.0% from the same period in the previous year and chemical sales volume was 29.2 million tonnes, up 4.1% year-on-year.
In the first half of 2014, operating revenue of the chemicals segment was
The Company has focused on improving the investment quality and returns and has made progress in a number of key projects. Total capital expenditure in the first half of 2014 was
This was primarily for oil and gas production capacity building, including at the Shengli oil field, Tahe oil field, Yuanba and Daniudi gas fields, Fuling shale gas field, the South Yanchuan Coal-bed-methane project, the
The Refining Segment accounted for a capital expenditure of
This was primarily used for the acquisition of equity interests in the Ningdong coal chemical project and an investment in ZhongAn coal-chemical project, as well as to support product mix adjustments and basic chemical projects including Qilu acrylonitrile and Maoming polypropylene projects.
The Marketing and Distribution Segment accounted for a capital expenditure of
Following the significant breakthrough in the Fuling shale gas exploration project and after trial development and appraisal, the Company has set an overall production capacity target of 10 billion cubic meters for the Fuling shale gas field, and a planned capacity of 5 billion cubic meters per year for the first phase.
In accordance with the guidance of overall deployment and step-by-step development, the first project in the first phase, which is the North Block development, is scheduled for 2014. This project mainly consists of drilling 91 new wells and constructing shale gas gathering and transmission facilities. The new production capacity is expected to be 1.8 billion cubic meters for this year.
Restructuring of the Marketing Business
In the first half of 2014, the Company accelerated the restructuring of
The main objectives of the Capital Introduction are to promote and optimize a modern enterprise system, improve its market-oriented operational system and management mechanism, facilitate business innovation and vitality, enhance the competitiveness and sustainability of the enterprise, promote the transformation of Sinopec Marketing from a refined oil products supplier into an integrated services provider and develop Sinopec Marketing into a comprehensive lifestyle services provider which is trusted by consumers and which satisfies the needs of the general public.
Health, Safety, Environment and Low-carbon Growth
We improved and strictly implemented our Safe Production Accountability System, implemented the
The Company increased its efforts in environmental protection, energy conservation, emissions reduction, green and low-carbon growth, and initiated energy performance contracting as well as an energy management system. Our Clean Water and Blue Sky campaign is well underway and is working towards a plan of Double the Energy Efficiency. In the first half of 2014, our chemical oxygen demand (COD) in wastewater discharge fell by 3.84% year-on-year and SO2 emissions fell by 4.73% year-on-year.
Corporate Governance Improvement
During the reporting period,
The Company has also provided training to newly appointed members of senior management in order to support the performance of their duties. The independent non-executive directors strengthened their communication with management and the external auditors and actively participated in the on-site research and evaluation of the subsidiaries.
The Company initiates and leads green and low carbon development, and launches Energy Conservation Campaign.
In the second half of the year, we expect the global economic recovery to slow while
We will focus on efficiency and profitability based on market dynamics and on safety and reliable operations. To achieve full-year production and operation targets, we will undertake initiatives in the following key areas:
In exploration and production, we will promote efficient and effective exploration in frontier areas, secure acreage for commercial development, continuously advance overseas crude oil development, and step up capacity building in Yuanba, Daniudi, middle-shallow layer of west
In refining, we will optimise procurement and allocation of crude oil to reduce costs. We will readjust our product mix and raise the output of high-value-added products. We will continue to upgrade the quality of oil products including our GB IV highway diesel and GB V gasoline, and will strengthen the marketing of LPG, asphalt and petroleum wax.
In marketing and distribution, we will push forward the reform and restructuring of our marketing business. We will optimise resources allocation, improve business efficiency, and take full advantage of our brand and existing network to expand retail volume. We will promote market-oriented development of non-fuel and other emerging businesses, and enhance the value-creation capability of our sales network.
In chemicals, we will take advantage of integration production, and further adjust our feedstock to reduce costs, modify our product mix and unit structure through better integration of production, marketing and research to produce more marketable products. We will also strengthen business operations and marketing optimisation to further enhance marketing ability.
Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies and research, development and application of technologies and information.
This press release includes 'forward-looking statements'. All statements, other than statements of historical facts that address activities, events or developments that
Tel: (86 10) 5996 0028
Fax: (86 10) 5996 0386
Tel: (86 10) 5996 0028
Fax: (86 10) 5996 0386
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OCTOBER 31, 2014
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