China Petroleum & Chemical Corp., or Sinopec, (SNP, SNP.L), an integrated energy and chemical company, reported Sunday a surge in earnings for fiscal 2009 despite a decline in operating income. The company also announced that it has signed a deal to acquire oil assets in Angola by buying a 55% stake in Sonangol Sinopec International Ltd. for US$2.46 billion.
In accordance with the PRC Accounting Standards for Business Enterprises or ASBE, net profit attributable to equity holders of the company for 2009 surged 109% to RMB 61.26 billion from RMB 29.31 million in the corresponding period last year. Earnings per share was RMB 0.702, up from RMB 0.288 a year earlier.
Operating income declined 6.9% to RMB 1,345.05 billion, from RMB 1,444.29 billion in 2008. Operating profit was RMB 80.20 billion, compared with operating loss of RMB 28.77 billion a year earlier.
In accordance with the International Financial Reporting Standards or IFRS net profit attributable to equity holders of the company was RMB 61.76 billion, an increase of 116.5% from RMB 28.53 billion in the previous year. Earnings per share surged to RMB 0.708 from RMB 0.289 last year.
Turnover, other operating revenues and other income amounted to RMB 1,345.05 billion, down 10% from RMB 1,495.15 billion in 2008. Operating income rose to RMB 84.4 billion from RMB 26.34 billion in the previous year.
On IFRS basis, the company's Exploration & Production Segment's operating income slid 37% to RMB 123.84 billion, Refining segment operating income declined 19.2% to RMB 703.57 billion, marketing & distribution operating income declined 4.1% to RMB 783.09 billion, Chemicals operating income declined 13.8% to RMB 218.46 billion, and operating income from Corporate & Others fell 27.2% to RMB 521.87 billion.
Su Shulin, Chairman of Sinopec, said, "In 2009, the global financial crisis and intense market competition posed severe challenges to the Company's production and operations. In particular, the beginning of the year witnessed plummeting price and demand for petroleum and petrochemical products, and a harsh contraction in E&P segment profits, while the refining, petrochemical and marketing businesses were faced with high inventories."
Sinopec said its Board of Directors proposed a final dividend of RMB 0.11 per share, making an annual divided of RMB 0.18 per share.
Looking ahead, for 2010, the company plan to produce 42.55 million tonnes of crude oil and 12 billion cubic meters of natural gas and 8.69 million tonnes of ethylene. The Company plans to process 203 million tonnes of crude oil and produce 121 million tonnes of refined oil products.
Sinopec said, on 26 March it agreed to acquire deep-water oil assets in Angola by buying a 55% stake in Sonangol Sinopec International Ltd. for US$2.46 billion or about RMB 16.776 billion. The deal would be subject to necessary approvals and it will pay for the acquisition through internal resources and bank loans, the company said.
Sinopec said Sonangol Sinopec owns a 50% interest in Angola Block 18, a deep-water oil asset in Angola. Block 18 is divided into an east and west zone. The east zone has been in operation since October 2007, with daily production capacity of 240 thousands barrels, while the west zone is at the development phase.
SNP rose $2.95 or 3.72% and closed Friday's regular trading at at $82.34.
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