China: Sinopec Reports Growth in 2Q Revenue

SINOPEC Engineering announced its interim results for the six months ended 30 June 2013.

Results Highlights

• The Group achieved total revenue of approximately RMB19.645 billion, up 16.3% year-on-year. Profit attributable to shareholders reached approximately RMB2.214 billion, up 10.8% from a year ago. Basic earnings per share were RMB0.66, up 3.1% from the same period last year.
• The board of directors resolved to pay an interim dividend of RMB0.134 per share.
• During the Period, the value of new contracts amounted to approximately RMB45.080 billion, representing a significant growth of 244.2% over the same period last year. At the end of the Period, the Group’s backlog reached approximately RMB101.485 billion, up 33.4% from the year end of 2012 and accounting for 2.6 times of the annual revenue of RMB38.526 billion for 2012.
• The Group’s revenue growth was mainly driven by Engineering, Consulting and Licensing as well as EPC Contracting operations in terms of business segment. During the Period, revenue from Engineering, Consulting and Licensing operations surged 34.9% year-on-year, while that of EPC Contracting operations advanced 27.2% year-on-year.
• The Group derived its revenue mainly from New Coal Chemicals and Petrochemicals industries in terms of revenue sources by industries. During the Period, revenue from New Coal Chemicals industry surged 65.0% year-on-year, while revenue from Petrochemicals industry soared 27.2% year-on-year
• Revenue from the PRC increased 14.0% year-on-year to approximately RMB16.190 billion, accounting for 82.4% of the Group’s total revenue. Meanwhile, the overseas revenue grew 28.5% year-on-year to approximately RMB3.455 billion, accounting for 17.6% of the Group’s total revenue.

Business Highlights

Successful Implementation of Major Projects:

• The engineering, procurement and construction of Jingbian Coal Chemical Complex was basically completed and the Group will start to conduct commissioning and start-up of the project.
• More than 50% of all the units at Yulin Coal Chemical Complex were finished, with its safety, quality and development progress is all under control.
• Wuhan Ethylene Complex commenced full operation on 23 August 2013. Meanwhile, the design of Sinochem Quanzhou Complex has been completed and all the major equipment and materials have been procured.
• The development of Shijiazhuang Oil Refining and Chemical Complex is progressing well and 70% of the project has been completed.

Excellent Results in Market Development: While maintaining leading advantages in traditional industries such as oil refinery and petrochemicals, the Group stepped up efforts to explore business opportunities in domestic and overseas coal chemical markets. During the Period, the Group signed a number of new contracts with total value of RMB45.080 billion, including RMB22.443 billion for domestic contracts and RMB22.637 billion for overseas contracts.

Representative domestic projects signed during the Period included:

• the DMTO-II unit for the 700 Ktpa coal-to-olefin project of Pucheng Clean Energy Chemical Co., Ltd., with an EPC contract value of RMB2.398 billion;
• the DMTO unit for the 300 Ktpa polyethylene project and the 390 Ktpa polypropylene project of Zhejiang Xingxing New Energy Co., Ltd., with an EPC contract value of RMB1.819 billion;
• the tank farm project for Shandong LNG project of SINOPEC Qingdao LNG Co., Ltd., with an EPC contract value of RMB1.665 billion;
• the 400 Ktpa phenol-acetone project of SINOPEC Shanghai Mitsui Chemical Co., Ltd., with an EPC contract value of RMB1.230 billion.

Mr. Cai Xiyou, Chairman of SINOPEC SEG, commented, “The year 2013 marks a milestone for SINOPEC Engineering as it was listed in May on the main board of the Stock Exchange of Hong Kong. Our listing signifies that the Group has successfully tapped into the international capital markets. This is the first results announcement made since our listing. It highlights the Group’s development strategies to focus on integrated business development, internationalization, differentiation, continuous innovation and low-carbon emission and its efforts to become a world-class energy and chemical engineering enterprise. During the Period, the Group achieved 16.3% and 10.8% year-on-year growth respectively in revenue and net profit and made satisfactory operating results.”

“We also achieved promising results in market development. While retaining leadership in traditional markets, the Group actively expanded domestic coal chemical markets and stepped up efforts in overseas market exploration. During the Period, we concluded two EPC contracting agreements abroad.”

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LNG World News Staff, August 22, 2013