Sinopec (600028): Refining and Chemicals Increasing Low Performance Expected to Continue to Stabilize Oil, Increase Gas and Reduce Costs

Sinopec (600028): Refining and Chemicals Increasing Low Performance Expected to Continue to Stabilize Oil, Increase Gas and Reduce Costs

Event: The company announced that its revenue for the first half of 20深圳桑拿网19 was 1,499 billion yuan, which will increase by 15 in the future.

3%; realized net profit of 313.

4 billion, 24 from the previous decade.

7%; proposed dividend 0.

12 yuan (including tax).

Fully promote the stabilization of oil, increase gas and reduce costs: According to the announcement, in the first half of the year, the international crude oil price fluctuated rapidly after falling, and the average spot price of Brent crude oil was 65.

$ 95 / barrel, down 6 per year.


The company’s crude oil production is 1.

4.2 billion barrels per year.

4%, of which domestic production increased by 0.

3%, foreign countries continue to maintain attenuation, -11.


Natural gas production was 509.5 billion cubic meters, +7 in ten years.


Before the replacement of marketing and distribution, oil refining, 杭州桑拿网 chemical, exploration and development and headquarters operating income gradually -24.

8\-198.4\-38.7\+66.5\+19 亿。Except for exploration and development, other versions are subdivided.

Internal make-up income 2.

400 million, an annual reduction of 5.2 billion.

In the first half of the year, the company’s general and administrative expenses were 24.8 billion yuan, a decrease of 21 per year.

0%, vigorously reduce expenses, at the same time, affected by the new leasing standards, some gas stations, land and other lease expenditure accounting adjustments.

Depreciation, depletion and amortization of 5.27 million yuan, an annual increase of 1.

5%, mainly due to the company’s implementation of new leasing regulations, increase of right-of-use assets, and corresponding depreciation increase.

Refining and refining margins narrowed and continued to tap the potential for integration: the company processed crude oil in the first half of the year1.

2.4 billion tons, an annual increase of 2.

7%, producing 7,894 tons of refined oil, an increase of 3 per year.

4%, of which gasoline production increased by 4.

3%, kerosene production increased by 7.


The company achieved operating profit of 4.91 million yuan in the first half of the year, a decrease of 20 per year.

2%, of which the operating income of the refining and refining segment was 31 billion yuan, a decrease of 43% each year.

The gross profit of major products such as oil refining and chemical industry narrowed, and the gross profit of oil refining and chemical industry decreased.

2pct and 1.

6 points, influence on company performance.The company continued to take advantage of its overall advantages to optimize its product structure and increase production of high value-added products such as gasoline, aviation coal, and chemical raw materials. The diesel-to-gasoline ratio gradually decreased to one.

03, it is expected to slow down the impact of refining profit breakthrough.

The proportion of direct sales of refined oil products increased: The company’s gross profit margin for marketing and distribution remained stable at around 2%, and Sinopec branded gas stations increased by 13 to 30,674.

The total sales volume of refined oil products increased by 12,691, an annual increase of 9.

6%, of which retail gasoline and diesel were 3360.

7 Positive and 2037.

1 initially, at least -0.

1% and +1.

7%, direct sales of gasoline and diesel were 1149.

9 Positive and 2122.

3 nominal, the proportion of distribution increased to 25.

5% and 51%.

With reference to the “Development Report of the Oil and Gas Industry at Home and Abroad 2018”, the refining capacity of private enterprises will increase to 2 in 2019.

3.5 billion tons per year, accounting for 25% of the country’s refining capacity from 2018.

6% rose to 27.

2%, the internal refined oil market competition has intensified, but considering the company’s channel and brand advantages, the sales business continued to increase market share.

Investment suggestion: EPS 0 is expected in 2019-2021.



56 yuan, maintain Buy-A rating, 6-month target price of 5.

7 yuan, corresponding to PE 11/10/10 times.

Risk warning: Oil prices continue to fall, and demand for refined oil and chemicals is growing less than expected, etc.