(EnergyAsia, March 27 2012, Tuesday) — China Petroleum and Chemical Corp (Sinopec Corp), the country’s second largest integrated oil company, said its 2011 net profits grew by just 1.3% as downstream losses from its refining and marketing operations offset upstream gains.

With its net profit at 71.7 billion yuan, the company reported basic earnings of 0.827 yuan per share, also up 1.4% from 2010.

Its refining operations, Asia’s largest, reported a loss of 37.6 billion yuan in 2011 reversing an operating profit of 14.9 billion yuan from the previous year. Chinese refiners and retailers have to sell their fuel to domestic consumers at government-set prices that are below international levels.
 
Rising crude oil prices boosted the operating profit of its upstream division by 51.9% to 71.6 billion yuan last year over 2010. (US$1=6.3 yuan).

The company’s board has approved paying a final dividend of 0.20 yuan per share which brings the total for 2011 to 0.3 yuan for a 42.8% increase over the previous year. Based on the stock price on December 31 2011, the stock’s yield was 4.5%.

Sinopec said it raised oil and gas production by 1.6% to 408 million barrels of oil equivalent while its refinery throughput rose 3% to 217 million tonnes.

The company’s sales of refined oil products grew 8.8% to a record 162 million tonnes while its sales volume of chemical products reached 50.8 million tonnes.

Sinopec’s Exploration and Production performance

2011

2010

2009

Change from 2010 to 2011 (%)

Oil and gas production (mmboe)

407.91

401.42

377.45

1.6

Crude oil production (million barrels)

321.73

327.85

327.62

(1.9)

Including:China

303.37

302.18

301.15

0.4

Overseas

18.36

25.67

26.47

(28.5)

Natural gas production (bcf)

517.07

441.39

299.01

17.1


Sinopec’s financial performance for 2010 and 2011

Years ended 31 December

Change

2011

2010

Million yuan

%

Exploration and Production Segment

Operating revenues

241,838

187,145

29.2

Operating expenses

170,207

139,996

21.6

Operating profit

71,631

47,149

51.9

Refining Segment

Operating revenues

1,212,072

971,577

24.8

Operating expenses

1,247,852

955,726

30.6

Operating (loss)/profit

(35,780)

15,851

Marketing and Distribution Segment

Operating revenues

1,347,626

1,040,698

29.5

Operating expenses

1,302,930

1,009,938

29.0

Operating profit

44,696

30,760

45.3

Chemicals Segment

Operating revenues

420,490

327,622

28.3

Operating expenses

393,758

312,611

26.0

Operating profit

26,732

15,011

78.1

Corporate and others

Operating revenues

1,134,182

796,789

42.3

Operating expenses

1,136,822

799,131

42.3

Operating loss

(2,640)

(2,342)

12.7

Elimination of inter-segment profit

891

(1,455)