Sinopec-China Petroleum

By: EconomyWatch   Date: 17 July 2010

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Sinopec or China Petroleum and Chemical Corporation is a prominent petroleum company in People's Republic of China. It is engaged in business of oil and gas exploration, refining, and marketing of petrochemicals. Sinopec also produces and sells petrochemicals. It is ranked 52 in 2008 Forbes Global 2000 list.
Sinopec is headquartered in Chaoyang District, Beijing in People's Republic of China. This petroleum major is listed in Shanghai (SSE: 600028), Hong Kong (SEHK: 0386), New York (SNP) and London (SNP) stock exchanges.

Brief history
Sinopec was incorporated on February 25, 2000 by China Petrochemical Corporation or Sinopec Group. It was commercially classified as a sole initiator, pursuant to PRC company law. This company issued 16.78 billion H shares in New York, Hong Kong and London stock exchanges on October 18 and 19, 2000. Sinopec floated 2.8 billion A shares in Shanghai stock exchange on July 16, 2001. Until now, approximately 75.84% of total shares is held by Sinopec Group. 19.35% of total shares are listed outside China.

Products and services
Sinopec is largest integrated chemical and energy company in People's Republic of China. This firm is engaged in oil and gas exploration, and extraction. It also transports petrochemicals, chemical fertilizers, chemical fibers and related chemical products. Sinopec also exports and imports natural gas, crude oil, petrochemicals and refined oil products. It is also engaged in research, application and development of petroleum technology.
Sinopec is PRC's biggest producer and supplier of refined oil products like diesel, gasoline and jet fuel. Sinopec-China also supplies major petroleum products like synthetic fiber, chemical fertilizer, petrochemical intermediates, synthetic resins and synthetic fiber monomers. Sinopec is China's second biggest producer of crude oil.

Financials
Market capitalization of Sinopec was RMB 636.4 billion in 2007. Operating income was RMB 734.783 billion. Net profit was around RMB 9.339 billion. Total assets were worth RMB 820,556 million.

Awards and recognition
Sinopec has won recognition for its investor relations and corporate governance. It bagged 'Best Overall Investor Relations- large cap' from IR magazine in 2005. It was also named as one of 'Top Ten Best Listed Companies in China' in 2005.

Current financial crisis
Sinopec was forced to cut import of oil by 10%. This was mainly due to steeply rising oil prices. Reduced Chinese Government subsidies also hit the company hard financially.



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