Sinopec Corp.(00386)2023-08-27 10:04Financial Performance - Operating revenue for the first half of 2023 was RMB 1,593,682 million, a decrease of 1.1% compared to RMB 1,612,126 million in the same period of 2022[6]. - Net profit attributable to shareholders of the parent company was RMB 35,111 million, down 20.1% from RMB 43,920 million in the first half of 2022[6]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 33,655 million, a decrease of 22.4% from RMB 43,350 million in the same period of 2022[6]. - Basic earnings per share decreased by 19.3% to 0.293 RMB compared to the same period last year[7]. - Operating profit for the first half of 2023 was RMB 53.7 billion, down 14.7% year-on-year[30]. - The net profit attributable to shareholders for the first half of 2023 was RMB 36.122 billion, a decline of 19.4% compared to RMB 44.841 billion in the same period of 2022[40]. - The company reported a net profit attributable to shareholders of RMB 33,655 million for the first half of 2023, a decrease of RMB 9,695 million compared to the same period last year[140]. - The EBITDA to total debt ratio decreased to 0.34 from 0.56 year-on-year, indicating a reduction in profitability[140]. Cash Flow and Liquidity - Net cash flow from operating activities increased significantly to RMB 27,562 million, up 457.1% from RMB 4,947 million in the first half of 2022[6]. - The net cash inflow from operating activities for the first half of 2023 was RMB 27.56 billion, an increase of RMB 22.62 billion year-on-year[62]. - The net cash outflow from investment activities was RMB 93.43 billion, an increase of RMB 42.29 billion compared to the same period last year[63]. - Cash inflow from financing activities was RMB 366,323 million, slightly up from RMB 349,919 million in the previous year[148]. - Net cash flow from financing activities decreased to RMB 66,861 million from RMB 75,212 million, indicating a decline in financing efficiency[148]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 2,026,902 million, representing a 3.9% increase from RMB 1,951,121 million at the end of 2022[6]. - Total liabilities as of June 30, 2023, were RMB 1,078.3 billion, an increase of RMB 66.73 billion from the end of 2022[60]. - The asset-liability ratio increased to 53.16% from 51.80%, primarily due to an increase in borrowings[140]. - Non-current liabilities increased to RMB 408.9 billion, up RMB 65.6 billion from the end of 2022, primarily due to increased long-term borrowings[74]. Revenue Segmentation - The exploration and development segment reported operating revenue of RMB 144.863 billion for the first half of 2023, a decrease of 8.4% year-on-year, primarily due to falling crude oil prices[46]. - The refining segment's operating revenue was RMB 729.557 billion, down 5.9% year-on-year, attributed to a significant decline in international crude oil prices[47]. - The marketing and distribution segment achieved operating revenue of RMB 871.348 billion, an increase of 10.0% year-on-year, reflecting strong sales performance[45]. - The chemical segment reported operating revenue of RMB 244.300 billion, a decrease of 12.2% year-on-year, impacted by lower product prices[45]. Investments and Capital Expenditure - Capital expenditure in the first half of 2023 totaled RMB 74.67 billion, with RMB 33.42 billion allocated to exploration and development, RMB 7.06 billion to refining, RMB 3.32 billion to marketing and distribution, and RMB 30.04 billion to chemicals[26]. - Capital expenditure for the second half of 2023 is projected to be RMB 104 billion, with RMB 41 billion for exploration and development and RMB 15.6 billion for refining[28]. Environmental and Social Responsibility - The company has strengthened its ESG management and is actively promoting carbon peak actions as part of its corporate social responsibility initiatives[1]. - The company achieved a 13% year-on-year reduction in COD emissions and a 2% decrease in sulfur dioxide emissions[91]. - Carbon emissions were reduced by 2.26 million tons of CO2 equivalent, with 843,000 tons of CO2 recycled and 422,000 tons injected for oil recovery[91]. Corporate Governance and Compliance - The company emphasizes the importance of maintaining accurate and complete financial reporting to stakeholders[3]. - The company has enhanced its compliance management and risk control, achieving new improvements in compliance management levels[1]. - The company strictly adheres to the corporate governance code as per the Hong Kong listing rules[89]. Future Outlook and Strategy - Future outlook remains cautious due to market volatility and external economic factors impacting the energy sector[2]. - The company aims to enhance its integrated energy services, expanding into hydrogen and electric charging businesses[20]. - The company plans to continue optimizing its supply chain and cost management to maximize overall industry chain benefits[23]. Employee and Talent Management - As of June 30, 2023, the company employed 368,450 staff, with total employee compensation costs amounting to approximately RMB 49.949 billion[86]. - The company has implemented 29 key talent training projects during the reporting period, training a total of 3,100 individuals[88].