Sinopec Corp.(00386)2024-08-25 10:06Financial Performance - For the six months ended June 30, 2024, the operating revenue was RMB 1,576,131 million, a decrease of 1.1% compared to RMB 1,593,682 million in the same period of 2023[7]. - The net profit attributable to shareholders of the parent company was RMB 35,703 million, representing an increase of 1.7% from RMB 35,111 million year-on-year[7]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 35,582 million, up 5.7% from RMB 33,655 million in the previous year[7]. - The net cash flow from operating activities was RMB 42,269 million, a significant increase of 53.4% compared to RMB 27,562 million in the same period last year[7]. - Basic earnings per share for the six months ended June 30, 2024, were RMB 0.296, a 1.0% increase from RMB 0.293 in the same period of 2023[8]. - The diluted earnings per share also stood at RMB 0.296, reflecting the same growth of 1.0% year-on-year[8]. - The company achieved a net profit of RMB 42.39 billion in the first half of 2024, an increase of 1.9% compared to the same period in 2023[35]. - The company reported a total profit of RMB 21,387 million, a decline of 31.1% from RMB 31,078 million year-on-year[167]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 2,141,936 million, reflecting a 5.7% increase from RMB 2,026,674 million at the end of 2023[7]. - The total liabilities increased to RMB 1,156.4 billion as of June 30, 2024, up RMB 87.5 billion from the end of 2023[64]. - The company's total assets as of June 30, 2024, were RMB 2,141,936 million, an increase from RMB 2,026,674 million as of December 31, 2023, representing a growth of approximately 5.7%[164]. - The company's total liabilities reached RMB 1,155,591 million, up from RMB 1,068,019 million, indicating an increase of about 8.2%[164]. Cash Flow - The company's net cash inflow from operating activities was RMB 42,269 million, an increase of RMB 14,707 million compared to RMB 27,562 million in the same period of 2023[67]. - The company's net cash outflow from investing activities in the first half of 2024 was RMB 79,004 million, a decrease of RMB 14,426 million from RMB 93,430 million in the same period of 2023[68]. - The net cash inflow from financing activities in the first half of 2024 was RMB 36,862 million, a decrease of RMB 29,999 million compared to RMB 66,861 million in the same period of 2023[68]. - The company reported a significant increase in cash flow from investment activities, with a net cash outflow of RMB 79,004 million, compared to RMB 93,430 million in the previous year[168]. Production and Sales - The total oil and gas equivalent production reached 257.66 million barrels, a year-on-year increase of 3.1%, with domestic crude oil production at 126.49 million barrels, up 1.5%[20]. - Natural gas production was 700.57 billion cubic feet, reflecting a year-on-year growth of 6.0%[20]. - The company processed 12,669 million tons of crude oil, producing 7,730 million tons of refined oil, a year-on-year increase of 1.6%[22]. - Total refined oil sales reached 11,901 million tons, a year-on-year growth of 2.1%, with domestic sales at 9,014 million tons[24]. Dividends and Shareholder Returns - The company plans to distribute a mid-year cash dividend of RMB 0.146 per share for 2024, adhering to the upper limit set by the company's articles of association[15]. - The company aims to maintain a cash dividend payout ratio of no less than 65% over the next three years, sharing development results with shareholders[17]. - The cash dividend for the year ending December 31, 2023, is RMB 0.2 per share (tax included), approved by the annual general meeting[86]. - The total cash dividend for 2023, including the interim dividend of RMB 0.145 per share (tax included), amounts to RMB 0.345 per share (tax included)[86]. Environmental and Sustainability Initiatives - The company emphasizes improving ESG management and sustainable development, with ongoing efforts to enhance corporate governance and stakeholder communication[16]. - The company reported a 4% year-on-year reduction in COD emissions and a 3% decrease in sulfur dioxide emissions during the reporting period[94]. - The company achieved a reduction of 2.149 million tons of CO2 equivalent emissions through energy-saving measures, alongside the recovery of 1.062 million tons of CO2[95]. - The company has implemented a comprehensive ecological protection plan, focusing on pollution prevention and environmental responsibility[94]. Strategic Initiatives and Future Plans - The company is focusing on enhancing operational quality and expanding profit-generating capabilities through integrated advantages and cost control measures[15]. - The company is actively developing new energy businesses, including hydrogen, wind, and solar energy, to create a complementary energy structure[16]. - The company is transitioning towards a comprehensive energy service provider, focusing on hydrogen energy and electric vehicle charging networks[23]. - The company plans to produce 139 million barrels of crude oil and 6,795 billion cubic feet of natural gas in the second half of 2024[32]. Corporate Governance and Management - The company completed the election of the ninth board of directors and supervisory board members during the annual general meeting held on June 28, 2024[82]. - The new president, Zhao Dong, was appointed on April 28, 2024, following the resignation of the previous president, Yu Baocai[83]. - The company emphasizes enhancing internal control and risk management, continuously improving compliance management levels[81]. - The ninth board of directors reflects diversity in professional background, gender, and work experience[81]. Risks and Challenges - The company faces risks related to macroeconomic changes, including uncertainties from global economic growth and environmental constraints[143]. - The company is exposed to cyclical risks in the oil and petrochemical industry, with significant sensitivity to macroeconomic conditions and consumer demand[143]. - Regulatory risks include potential changes in government policies affecting oil and gas exploration and production licenses, as well as retail pricing controls[143]. - The company is significantly reliant on imported crude oil, making it vulnerable to price volatility and supply disruptions due to geopolitical factors[144].