China : Sinopec ethylene output up 15.9% in 2006

China Petroleum & Chemical Corporation (Sinopec Corp) announced its annual results for the twelve months ended 31 December, 2006.

Under PRC accounting rules and regulations, the Company’s income from principal operations was RMB 1,044.58 billion (US$131.21 billion) in 2006, an increase of 30.72%. Net profit was RMB 50.66 billion (US$6.36 billion), up 28.08% compared with the same period of 2005.

Under International Financial Reporting Standards (IFRS), the Company’s turnover with other operating revenues and income, was RMB 1,076.40 billion (US$135.21 billion) in 2006, an increase of 29.27% compared to 2005. Profit attributable to shareholders was RMB 53.91 billion (US$6.77 billion), an increase of 30.05% compared to last year.

The Board of Directors proposed a dividend of RMB 0.15 per share for the full year of 2006, which is equivalent to RMB 15 (US$1.88) per American Depositary Share (ADR). After deducting the interim dividend of RMB0.04 that has been paid, the final dividend for 2006 is RMB 0.11 per share.

“In 2006, following the guidelines of ‘reform, restructuring, innovation and development,’ the Company further expanded its operations, improved asset quality, enhanced its profitability and achieved significant growth and earnings. ” commented Mr. Chen Tong Hai, Chairman of Sinopec Corp.

“We are particularly pleased with our success in Exploration and Production. Following a number of years of diligent efforts and through the application of cutting edge technologies in marine facies exploration, we discovered a significant natural gas field in Northeast Sichuan. This will help build our base of reserves over time and set a foundation for the Company’s future growth."
 
“In 2006, we increased both our reserves and production of crude oil and natural gas, with crude oil production exceeding 40 million tonnes for the year. As of December 31, 2006, our refining capacity was the third largest in the world, and our ethylene production capacity was the fourth largest."

"In our downstream segment, we further improved our sales network for gasoline and diesel products, and with approximately 28,000 service stations as of December 31, 2006, we have the third largest network of gasoline and diesel retail stations in the world."

"Overall, the Company’s competitive advantages as an integrated energy and chemical company have been further enhanced. In 2006, our turnover and other operating revenues surpassed RMB 1 trillion for the first time and our Return on Capital Employed (ROCE) exceeded 13%.”

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On the same day, Sinopec Corp. made an announcement on profit projection for the first quarter of 2007. In accordance with PRC Accounting Rules and Regulations, the Company’s consolidated net profit for 1Q 2007 continued its momentum by recording an increase of more than 50 % compared to the same period in 2006.
 
Sinopec Corp