Sinopec (600028): 19H1 performance declines year after year

Sinopec (600028): 19H1 performance declines year after year

The event company released a semi-annual report for 2019, and the company’s revenue in 2019H1 was 14,989.

96 ppm, an increase of 15 in ten years.


In accordance with the Chinese Accounting Standards for Business Enterprises, the company realized net profit attributable to its parent 313 in the reporting merger.

38 ‰, a decrease of 24 per year.

7%; net profit after deduction 304.

51 ‰, a decrease of 23 per year.

5%; EPS 0 achieved.

259 yuan, a decrease of 24 per year.


Brief commentary on the short-term breakthrough in performance, the exploration and development sector has made efforts in 2019 to achieve net profit attributable to mothers 313.

38 ‰, a decrease of 24 per year.

7%; of which Q2 achieved a net profit attributable to mother of 165 in a single quarter.

75 ppm, a decrease of 27 per year.

4%, an increase of 12 from the previous month.


Exploration and development business: Oil and gas production increases every year.

2019H1 Company’s Exploration and Development Division achieved operating income 62.

4.3 billion, turned a deficit, an increase of 66 in ten years.

5.5 billion.

Reported quantity, the company achieved oil and gas equivalent production2.

2.7 billion barrels, an increase of 0 every year.

91%, respectively, to achieve crude oil and natural gas production1.

4.1 billion barrels, 509.5 billion cubic feet, each doubled -1.

36%, + 6.


The report summarizes the company’s efforts in oil and gas exploration and development, and made new discoveries in oil and gas exploration in Jiyang Depression, Sichuan Basin, Ordos Basin, etc .; increasing the scale of establishment of crude oil production; accelerating Fuling, Weirong, West Sichuan and Dongsheng, etc.Gas field capacity construction.

Refining business: profit decline and product structure optimization.

The company reported an operating profit of 190 from the first-stage refining business.

90 trillion, down 51 a year.

0%, the decline in the profit of the sector was mainly due to: 1) the rise in overseas shipping and insurance premiums; 2) the rise in crude oil procurement costs caused by the depreciation of the RMB;

In 2019H1, the sales of gasoline, diesel and kerosene reached 30.37 million, 30.75 million, and 1171 indicators, respectively, an increase of + 4/0% and +0.

1%, +9.

4%, the diesel-gasoline ratio further decreased, and the product structure was optimized.

Sales segment: The market for refined oil products is fiercely competitive and the retail price gap has narrowed.

Reported that the first-tier company sales segment realized operating income of 147.

09 billion, down 14 a year.

4%, mainly due to fierce competition in the refined oil market and narrowing of the retail price spread.According to the number of reports, the sales of products in the sales segment have been maximized. The sales of gasoline, diesel, and kerosene have reached 45.11 million, 41.59 million, and 1301 positions, +3 each time.

4%, +4.

4%, +7.


Chemicals sector: falling product prices have resulted in lower profits.

In 2019H1, the chemical sector realized operating income of 11.9 billion yuan, a year-on-year 北京夜生活网 decrease of 24.

5%, mainly due to fierce market competition and narrowing product spreads.

Reported sales of major products are still growing. Basic organic chemicals, synthetic fiber monomers and polymers, synthetic resins, synthetic fibers, synthetic rubber, and fertilizer sales have increased by +5.

8%, +50

3%, + 6.

8%, +3

4%, +16.

9%, +15.

At 6%, the price of most products showed a range and the spread narrowed.

Capital expenditures have increased significantly.

In the first half of the year, the company’s capital expenditure was 428.

US $ 7.8 billion, a significant increase of 81% previously, of which the capital expenditures for the exploration and development segment, the refining segment, the sales segment, and the chemical segment were 200.

64, 87.

79, 80.

71, 56.

740,000 yuan, an increase of 86%, 90%, 50%, 115% each year.

Maintain a high dividend payout ratio.

In terms of dividends, the company plans to pay a dividend of RMB 0 in the first half of 2019.

12 yuan (including tax) for cash dividend distribution.

In the company’s history, the cash dividend ratio has always maintained a high level. In 2018, 2017, 2016, and 2015, the dividends were 508, 605, 301, and 18.2 billion yuan, respectively, accounting for 81%, 118%, and 65% of the net profit attributable to the parent. 56%.

At present, the company’s large-scale capital expenditure period has passed, and the cash flow is stable. It is expected that a high proportion of dividends will be sustainable in the future.

We expect the company to achieve net profit of 644, 686 trillion and EPS 0 in 2019 and 2020.

53, 0.

57 yuan, corresponding to PE 9.

3, 8.

8X, PB is only 0.

8x, maintain “Buy” rating.