The total volume of chemical products has reached a new high

On March 24, 2019, Sinopec released its financial report for 2018. According to the financial statements, according to the international financial reporting standards, Sinopec has achieved a turnover and other operating income of RMB 2.89 trillion; the company's shareholders should account for a profit of RMB 61.6 billion, an increase of 20.2% year on year; and the ending asset liability ratio is 46.21%. After calculation, the average daily income is about 169 million yuan. According to the main financial data and indicators calculated in accordance with the accounting standards for Chinese enterprises (source: Sinopec's official website), the total volume of chemical products business reached a record high, Sinopec's upstream business in 2018 greatly improved its oil and gas exploration and development efforts, promoted the construction of the natural gas production, supply, storage and marketing system, and the domestic crude oil reserve substitution rate reached 132%, and the natural gas production and sales volume grew rapidly. The operating income of the refining sector is 54.8 billion yuan; that of the chemical sector is 27 billion yuan; and that of the marketing and distribution sector is 23.5 billion yuan.

According to the announcement, in 2018, the proportion of new synthetic resin products and special materials of Sinopec reached 64.3%, the proportion of high value-added synthetic rubber products reached 26.3%, and the differentiation rate of synthetic fiber reached 90.4%; the annual ethylene output reached 11.51 million tons; the total operating volume of chemical products was 86.6 million tons, a year-on-year increase of 10.3%, a new record. Source: in Sinopec's official website refining sector, the operating revenue in 2018 was RMB 1263.4 billion, up 24.9% year on year. This is mainly due to the sharp rise in product prices, as well as efforts to increase the total crude oil processing volume and increase in product sales. The operating income is 54.8 billion yuan. In the whole year, 244 million tons of crude oil were processed, a year-on-year increase of 2.3%, 155 million tons of refined oil were produced, a year-on-year increase of 2.7%, including 7.2% increase in gasoline production and 7.6% increase in kerosene production. Sinopec and China National Petroleum Corporation (hereinafter referred to as "CNPC") and China National Offshore Oil Corporation (hereinafter referred to as "CNOOC") are collectively referred to as "three barrels of oil". Compared with the financial statements of the three companies in 2018, Sinopec ranked first in net profit in 2018, but the growth rate of net profit was the last.

In 2018, PetroChina's operating revenue was 2.35 trillion yuan, an increase of 16.8% year on year; the net profit attributable to shareholders was 52.591 billion yuan, an increase of 130.7% year on year. CNOOC's oil and gas sales revenue last year was 185.9 billion yuan, a year-on-year increase of 22.4%; the net profit attributable to shareholders reached 52.7 billion yuan, a year-on-year increase of 113.5%. Is the growth of net profit slowing down or related to the improper trading strategy of unipec? Looking back on December 27, 2018, Sinopec's ah shares plunged sharply. After nearly a month's investigation and follow-up, Sinopec issued a notice on January 25 saying that due to the improper trading strategy of its wholly-owned subsidiary unipec's hedging business, the operating loss of unipec in 2018 was about 4.65 billion yuan. According to Dai Houliang, chairman of Sinopec, in 2019, Sinopec will strive for progress in stability, take responsibility and implement it, laying a decisive foundation for achieving comprehensive and sustainable development. In 2019, Sinopec plans to spend 136.3 billion yuan on capital, an increase of 15.5% year on year. For the chemical sector, 12.12 million tons of ethylene are planned to be produced throughout the year.