Metallurgy / Chemicals / Rubber & Plastics

On August 29, Sinopec released its 2021 interim performance report. According to the International Financial Reporting Standards, the company’s operating income in the first half of the year was 1.26 trillion yuan, a year-on-year increase of 22%. The profit attributable to shareholders was 40 billion yuan, and the earnings per share were 0.33 yuan. It has strong capabilities and achieved the best performance in the same period in the past three years, surpassing the level before the epidemic year-on-year. The company's stable financial status and abundant cash flow provide sufficient capital guarantee for the company's future strategic development. The board of directors decided to distribute an interim dividend of RMB 0.16 per share in accordance with the upper limit of the dividend ratio.

In the first half of the year, the company vigorously implemented the world's leading development strategy, made every effort to build a "one base, two wings, three new" industrial structure, and unswervingly moved towards the middle and high end of the value chain of the industrial chain.

The upstream sector promoted high-quality exploration and profitable development, and profitability improved significantly. Increased reserves, production and efficiency have been realized. In terms of exploration, increased risk exploration in new areas and new areas, new discoveries were made in key basins, 200 million-ton oil and gas fields were discovered in the Tarim Basin, large gas fields with 100 billion cubic meters of proven reserves in the Sichuan Basin, and the Bohai Bay, Sichuan and Subei Basins Major breakthroughs have been made in continental shale oil exploration. In terms of development, speed up the production capacity of key oil and gas projects, promote large-scale production of natural gas, expand the market and increase efficiency, and steadily increase the sales and market share of natural gas. In the first half of the year, the production of oil and gas equivalent was 235.29 million barrels, a year-on-year increase of 4.2%, and the output of natural gas was 582.6 billion cubic feet, a year-on-year increase of 13.7%. The profitability of the upstream sector improved significantly, achieving an operating profit of 6.2 billion yuan.

The oil refining sector promoted the maximization of industrial chain efficiency, and profitability rebounded strongly. Adhere to the integrated coordination of production and sales, optimize the allocation of crude oil resources, vigorously increase the total processing volume, and maintain high-load operation of the equipment. Adhere to the direction of "oil conversion", strengthen structural adjustment, and increase the production of high value-added products and special products. In Yanshan Petrochemical, Guangzhou Petrochemical, Gaoqiao Petrochemical, and Hainan Refining and Chemical, four sets of hydrogen purification production plants have been built. Among them, 99.999% of the high-purity hydrogen produced by Yanshan Petrochemical will be guaranteed for the Beijing 2022 Winter Olympics. Successfully developed high-end graphite needle coke products, ranked first in the domestic market share of low-sulfur marine fuel, accelerated the construction of advanced production capacity, and promoted structural adjustment projects in an orderly manner. In the first half of the year, 126 million tons of crude oil were processed, a year-on-year increase of 13.7%, and 72.19 million tons of refined oil were produced, a year-on-year increase of 7.4%. The profitability of the refining sector rebounded strongly, achieving operating income of 39.4 billion yuan.

Sales of refined oil products recovered quickly. Leveraging on the advantages of integration and network, we will make every effort to expand the market and expand sales, with a total sales volume of 109 million tons of refined oil products. Accelerate the construction of "oil, gas, hydrogen and electricity service" comprehensive energy stations. The first carbon neutral gas station and photovoltaic building integrated gas station have been completed and put into operation. 20 hydrogen refueling stations, 570 charging and swapping stations, and distributed photovoltaic power generation have been built in China. There are 205 sites. At the same time, it continued to expand new business formats such as auto service, fast food, and advertising, and promoted the rapid development of non-oil business. In the first half of the year, the profit of the non-oil business increased by 13.2% year-on-year. In the 2021 China brand value evaluation information, the brand value of "Easy Jie" reached 18.4 billion yuan, an increase of 2.3 billion yuan. In the first half of the year, the total sales volume of refined oil products was 109 million tons. The profitability of the refined oil sales segment increased significantly, achieving operating income of 16.1 billion yuan.

The chemical sector adheres to the development direction of "basic + high-end". Accelerate the construction of advantages and advanced production capacity, focus on structural adjustment, and successfully develop a batch of high value-added and high profit products. Yizheng chemical fiber high-quality melt blown cloth supports global epidemic prevention and anti-epidemic. Optimize the product structure, increase the output of high value-added products such as metallocene polyolefin, and increase the proportion of high value-added products such as synthetic resin, synthetic rubber and synthetic fiber by 0.3, 4.9 and 0.8 percentage points respectively. In the first half of the year, ethylene output was 6.46 million tons, a year-on-year increase of 11.9%. The total business volume of chemical products is 40 million tons. The profitability of the chemical sector maintained a good level, achieving operating income of 13 billion yuan.

Capital expenditure pays more attention to quality and efficiency. In terms of investment, continue to optimize the investment management system and focus on improving the quality and efficiency of investment. Capital expenditures in the first half of the year were 57.9 billion yuan. Among them, the upstream sector is 24 billion yuan, which is mainly used for the construction of natural gas production capacity and storage and transportation facilities, as well as the construction of crude oil production capacity. The 7.9 billion yuan of oil refining sector is mainly used for the construction of refining structural adjustment projects and hydrogen purification plants. The marketing and distribution segment is 6.8 billion yuan, which is mainly used for the construction of comprehensive energy stations, gas (gas) stations and logistics facilities for the "oil, gas, hydrogen, and electric service" projects. The 19 billion yuan in the chemical sector is mainly used for the construction of ethylene projects in Zhenhai and Hainan, and the construction of Jiujiang Aromatics and Yizheng PTA.

Actively respond to climate change and continue to strengthen HSE management. Focusing on the national "dual-carbon" goal, strengthen the study of dual-carbon strategic paths, formulate and publish the "Guiding Opinions on Sinopec's Carbon Peak and Carbon Neutral Action", jointly launch the Chinese oil and gas enterprises methane emission control alliance, and launch my country's first million The construction of a ton-level CCUS project-Qilu Petrochemical-Shengli Oilfield CCUS project, provides an application case for the country to promote the large-scale development of CCUS. Continue to promote energy conservation and consumption reduction, reduce greenhouse gas emissions by 2.304 million tons of carbon dioxide equivalent; recycle 716,000 tons of carbon dioxide; and recover 320 million cubic meters of methane. The three-year action for special rectification of production safety was solidly promoted, and the situation of production safety was generally stable. In-depth advancement of the "Green Enterprise Action Plan", and the launch of a three-year campaign to improve environmental management. In the first half of the year, the COD and SO2 emissions of effluent discharged further decreased year-on-year.

Focus on high-quality development, and strive to achieve good performance throughout the year to create greater value. In the second half of the year, China's economy is expected to maintain steady growth on the basis of the good momentum in the first half of the year. It is expected that domestic demand for refined oil will remain stable, demand for chemical products is expected to achieve a better growth rate, and demand for natural gas will continue to grow rapidly. The company will further focus on high-quality development, make greater efforts to focus on technological innovation, promote technological leadership and further increase, make every effort to expand the market, optimize, adjust the structure, promote reform, prevent risks, strive to achieve good performance, and create greater for the society and shareholders the value of.