Sinopec Corp.(00386)2024-03-24 10:04Financial Performance - Total operating revenue for 2023 was RMB 3,212,215 million, a decrease of 3.2% compared to RMB 3,318,168 million in 2022[5] - Net profit attributable to shareholders of the parent company for 2023 was RMB 60,463 million, down 9.9% from RMB 67,082 million in 2022[5] - Basic earnings per share for 2023 were RMB 0.505, a decrease of 9.0% compared to RMB 0.555 in 2022[6] - The net profit attributable to shareholders for 2023 was RMB 58,310 million, down 12.5% from RMB 66,933 million in 2022[11] - The company's net profit attributable to shareholders in 2023 was RMB 60.463 billion, a decrease of RMB 6.6 billion or 9.9% compared to 2022[81] - The company's total consolidated operating revenue for 2023 was RMB 3,212.2 billion, down from RMB 3,318.2 billion in 2022[55] - The company's operating income was RMB 86.8 billion, a year-on-year increase of 14.5%, attributed to increased processing volume and improved operational efficiency[52] - The refining division's external sales revenue was RMB 1,927.3 billion, accounting for 60.0% of total revenue, a year-on-year increase of 3.9% driven by higher sales volumes of refined products[53] - The marketing and distribution segment achieved a revenue of RMB 1,818.429 billion, an increase of 6.1% year-on-year[84] Cash Flow and Assets - The net cash flow from operating activities increased by 38.9% to RMB 161,475 million from RMB 116,269 million in 2022[5] - The total assets as of December 31, 2023, were RMB 2,026,674 million, an increase of 3.9% from RMB 1,951,121 million in 2022[5] - The company's total assets at the end of 2023 were RMB 2,026.674 billion, an increase of RMB 75.553 billion from the end of 2022[82] - The company's cash and cash equivalents at the end of 2023 were RMB 121.8 billion[72] - The company's total liabilities were RMB 1,068.9 billion, an increase of RMB 57.3 billion from the previous year, with current liabilities decreasing by RMB 20.3 billion[71] Dividends and Shareholder Returns - The company plans to distribute a final cash dividend of RMB 0.2 per share, in addition to the interim dividend of RMB 0.145 per share, totaling RMB 0.345 per share for 2023[3] - The company maintains a high level of cash dividends and has implemented a new round of share buybacks to enhance shareholder value[87] - The company's dividend distribution policy is disclosed in the annual report, emphasizing the importance of shareholder returns[116] Debt and Financial Ratios - The company reported a total debt of RMB 1,068,019 million, with a debt-to-asset ratio of 52.70%[6] - The weighted average return on equity for 2023 was 7.59%, down from 8.57% in 2022[6] - The company's return on equity for 2023 was 7.26%, down from 8.50% in 2022[11] Operational Highlights - The company achieved a kerosene production increase of 60.7% year-on-year, reaching 28.95 million tons in 2023[33] - The total crude oil processing volume for the year was 257.52 million tons, a 6.3% increase from 242.27 million tons in 2022[33] - The production of refined oil products reached 156 million tons, reflecting an 11.3% increase from 140.15 million tons in 2022[33] - The company reported a significant increase in cash flow from operating activities, indicating a robust financial position[15] Research and Development - Research and development expenses for 2023 amounted to RMB 23.2 billion, with RMB 14 billion in expenses and RMB 9.2 billion in investments[74] - The company applied for 9,601 patents in 2023 and received 5,483 patent grants, showcasing its commitment to innovation[38] Governance and Compliance - Sinopec's governance practices align with the latest regulatory requirements, achieving an A-level rating for information disclosure from the Shanghai Stock Exchange[87] - The company has established a whistleblowing mechanism, allowing employees and other stakeholders to report concerns anonymously through various channels[112] - The board of directors has confirmed compliance with the standards of conduct throughout the reporting period, reinforcing governance practices[101] Environmental and Sustainability Initiatives - The company is committed to sustainable development, actively addressing climate change and promoting clean energy initiatives[16] - In 2023, Sinopec reduced greenhouse gas emissions by 2.24 million tons of CO2 equivalent and recovered 1.749 million tons of CO2[154] - The company achieved a 4.3% year-on-year reduction in COD discharge and a 5% reduction in sulfur dioxide emissions[153] Future Outlook and Strategic Plans - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 18%[126] - The company plans to increase exploration investments to solidify its oil and gas resource base, with exploration expenses rising to RMB 11.1 billion, a year-on-year increase of 4.4%[52] - The company plans to expand its overseas business and develop low-sulfur marine fuel markets, aiming to become the second-largest supplier globally[34]