Page 14 - Oil&Gas-AustralAsia-2015-Issue-4
P. 14
C HINA
Sinopec reports strong results
despite tough conditions ByMarieRYAN
A Sinopec chemical plant.
Image courtesy of Sinopec.
Sinopec has released its 2015 finan- period of 2014. The refining margin commitment to excellence.
cial year results this month with the was US$7.72 per barrel, representing an “During the first half of 2015, despite
Chinese national oil company reporting increase of 15.8 per cent year-on-year,” the slowdown of domestic economy
its refining and chemicals businesses the company said. and low oil prices, the company man-
achieved robust operating results and Sinpec’s exploration and production aged to navigate through the challeng-
became the profit drivers during the period. segment lost around US$5.2 billion in ing and complicated market environ-
“In the first half of 2015, the global eco- operating profit when compared to the ment and achieved solid operating
nomic recovery remained slow. China’s previous year with the company taking results, through tapping new resources
GDP grew by 7.0 per cent. The domestic effective measures in the current low oil for growth and reducing expenditure,
demand of crude oil maintained a price environment, including opti- optimizing production and operation,
steady growth, increasing 4.8 per cent mising its exploration and production reducing costs and expenses as well as
year on year, and natural gas demand plans and cutting high-cost crude oil expanding into new markets,” Mr Yupu said.
growth slowed down, up 2.1 per cent production. “The company is facing challenges from
year on year. Refined oil product Revenue from Sinopec’s non-fuel busi- the changing global political and eco-
demand continues to diversify following ness reached more than US$2 billion, nomic landscape, the shifting of growth
last year’s trend with a slower growth an increase of 85.4 per cent from the engine in Chinese economy, and volatil-
rate. Gasoline and kerosene consump- same period in 2014. The company ities in the industry and the market.
tion increased substantially while diesel reported it improved its feedstock and But at the same time, Sinopec also has
dropped slightly,” Sinopec reported. product mix to achieve better cost unprecedented growth opportunities.
The total consumption of refined oil efficiency. Drafting its 13th five-year-plan we’ll
products grew by 3 per cent compared “We put our efforts into research and proactively adapt to the ‘new normals’
with the same period of last year, as development, production and mar- in China’s economic growth and the
domestic demand for chemicals main- keting new products, and maintained megatrend of the world’s economy and
tained a steady growth with ethylene production volume growth in high the business cycle,” he said.
equivalent consumption up by 2.5 per value-added products. The segment’s Sinopec plans to produce 177 million
cent compared with the same period of operating profit during the six-month barrels of crude oil and 537 billion
last year. period ended 30 June 2015 was US$1.58 cubic feet of natural gas in the next year,
“We brought our scale advantages into billion, representing an increase of to reach its targets, the company will
full play to control the unit cost. We US$2.21 billion compared with the conduct reservoir evaluations of the
actively promoted the quality upgrading same period in 2014. oil-rich areas of the Tahe oil field and
of refined oil products and provide Chairman Wang Yupu said Sinopec has the west rim of Junggar Basin in East
high standard fuels to the market. We continuously improved its corporate China. In addition to the development
also took advantages of specialised governance, expanded its business and and assessment of the Erdos gas fields,
operation by improving our dedicated enhanced its competitiveness by riding Sichuan basin, Songliao Basin and
marketing network. The segment realized on the rapid growth of Chinese market, push ahead with Fuling shale gas field
an operating profit of US$2.4 billion in leveraging its integrated advantages, development to deliver its first phase
the first half of 2015, representing an and deepening reform and continuous capacity building target of 5 billion
increase of 57 per cent over the same cubic meters. §
A A12 OIL & GAS ustral SIA SEPTEMBER/OCTOBER 2015 www.oilandgasaustralasia.com
Sinopec reports strong results
despite tough conditions ByMarieRYAN
A Sinopec chemical plant.
Image courtesy of Sinopec.
Sinopec has released its 2015 finan- period of 2014. The refining margin commitment to excellence.
cial year results this month with the was US$7.72 per barrel, representing an “During the first half of 2015, despite
Chinese national oil company reporting increase of 15.8 per cent year-on-year,” the slowdown of domestic economy
its refining and chemicals businesses the company said. and low oil prices, the company man-
achieved robust operating results and Sinpec’s exploration and production aged to navigate through the challeng-
became the profit drivers during the period. segment lost around US$5.2 billion in ing and complicated market environ-
“In the first half of 2015, the global eco- operating profit when compared to the ment and achieved solid operating
nomic recovery remained slow. China’s previous year with the company taking results, through tapping new resources
GDP grew by 7.0 per cent. The domestic effective measures in the current low oil for growth and reducing expenditure,
demand of crude oil maintained a price environment, including opti- optimizing production and operation,
steady growth, increasing 4.8 per cent mising its exploration and production reducing costs and expenses as well as
year on year, and natural gas demand plans and cutting high-cost crude oil expanding into new markets,” Mr Yupu said.
growth slowed down, up 2.1 per cent production. “The company is facing challenges from
year on year. Refined oil product Revenue from Sinopec’s non-fuel busi- the changing global political and eco-
demand continues to diversify following ness reached more than US$2 billion, nomic landscape, the shifting of growth
last year’s trend with a slower growth an increase of 85.4 per cent from the engine in Chinese economy, and volatil-
rate. Gasoline and kerosene consump- same period in 2014. The company ities in the industry and the market.
tion increased substantially while diesel reported it improved its feedstock and But at the same time, Sinopec also has
dropped slightly,” Sinopec reported. product mix to achieve better cost unprecedented growth opportunities.
The total consumption of refined oil efficiency. Drafting its 13th five-year-plan we’ll
products grew by 3 per cent compared “We put our efforts into research and proactively adapt to the ‘new normals’
with the same period of last year, as development, production and mar- in China’s economic growth and the
domestic demand for chemicals main- keting new products, and maintained megatrend of the world’s economy and
tained a steady growth with ethylene production volume growth in high the business cycle,” he said.
equivalent consumption up by 2.5 per value-added products. The segment’s Sinopec plans to produce 177 million
cent compared with the same period of operating profit during the six-month barrels of crude oil and 537 billion
last year. period ended 30 June 2015 was US$1.58 cubic feet of natural gas in the next year,
“We brought our scale advantages into billion, representing an increase of to reach its targets, the company will
full play to control the unit cost. We US$2.21 billion compared with the conduct reservoir evaluations of the
actively promoted the quality upgrading same period in 2014. oil-rich areas of the Tahe oil field and
of refined oil products and provide Chairman Wang Yupu said Sinopec has the west rim of Junggar Basin in East
high standard fuels to the market. We continuously improved its corporate China. In addition to the development
also took advantages of specialised governance, expanded its business and and assessment of the Erdos gas fields,
operation by improving our dedicated enhanced its competitiveness by riding Sichuan basin, Songliao Basin and
marketing network. The segment realized on the rapid growth of Chinese market, push ahead with Fuling shale gas field
an operating profit of US$2.4 billion in leveraging its integrated advantages, development to deliver its first phase
the first half of 2015, representing an and deepening reform and continuous capacity building target of 5 billion
increase of 57 per cent over the same cubic meters. §
A A12 OIL & GAS ustral SIA SEPTEMBER/OCTOBER 2015 www.oilandgasaustralasia.com
