China Petrochemical, the world’s largest refinery, released its annual performance report for 2018 on May 25, showing that its net profit in 2018 is expected to grow 22.04% year-on-year, reaching 62.4 billion yuan.
In 2018, facing the severe and complicated market situation, Sinopec will take deepening the structural reform of supply side as the main line, comprehensively promote optimization, market expansion, cost reduction, risk control, reform promotion, strict management, strong innovation, Talent Gathering and other work, and achieve good results in production and operation.
Firstly, the company’s production operation was optimized and improved last year. The upstream plate promotes stable and restored production of crude oil and effective production of natural gas, and achieves tangible results in stabilizing oil, increasing gas and reducing cost. The refining sector adheres to market orientation, vigorously optimizes product structure, satisfactorily completes the task of upgrading the quality of Guoliu Oil, actively supports sales and expands the market, and fully guarantees the supply of chemical raw materials. The chemical industry sector seizes the favorable market opportunity, closely links production and marketing, deepens the adjustment of equipment, raw materials and product structure, continues to reduce the cost of raw materials per ton of ethylene, and the proportion of high value-added products of the three major synthetic materials continues to increase.
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Secondly, the company’s market development has achieved results. Oil sales actively make good use of the internal production and marketing coordination policy, strive to fight the market hard, in the fierce competition to stabilize sales, domestic oil products business growth year-on-year. Chemical sales have strengthened the links between production, marketing and research, deepened fine marketing and precise service, and continuously improved market leadership. The business volume of chemical products has increased over the previous year. Natural gas sales should strengthen the overall planning of self-produced gas and imported LNG resources, and strengthen the development of pipeline and terminal market. Refining sales have made great efforts to enlarge the scale of operation, with the volume of operations exceeding 40 million tons for the first time. The total amount of lube oil business increased by 5% over the previous year, and the sales of high-end products increased by 10%.
Thirdly, the restructuring of the company was well advanced last year. A batch of new discoveries have been made in oil and gas exploration, and key productivity construction has been accelerated. Weirong shale gas field has become another new productivity construction position after Fuling shale gas field. New steps have been taken in the construction of refining and chemical bases, and a number of oil quality upgrading and refining and chemical structural adjustment projects have been implemented in an orderly manner. The construction of new energy comprehensive demonstration stations has been steadily carried out, and new breakthroughs have been made in overseas petrol retail business. Tianjin LNG and E’ancang pipelines have been built and put into operation together, and Wen23 gas storage and transportation facilities have been accelerated. Easy to send customers, petrochemical e-commerce, Easy to Jie e-commerce and other platforms have developed rapidly. Clean energy business such as geothermal and waste heat utilization has developed steadily.
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Finally, Sinopec has made great achievements in scientific and technological innovation last year. We will deepen the reform of the scientific and technological system, stimulate innovation and creativity, increase key core technologies, and promote leading research on cutting-edge technologies to achieve a number of new achievements and new progress. Especially, the new structured zeolite materials have been awarded structural codes by the International Zeolite Association, so as to achieve zero breakthroughs in this field for Chinese enterprises. It has won one second prize for technological invention, three second prizes for scientific and technological progress, 7184 patents and 5241 authorized patents throughout the year, all of which have reached a record high and continue to rank among the leading state-owned enterprises.
Sinopec officials said that in 2018, the company earnestly fulfilled its social responsibility, intensified counterpart support and targeted poverty alleviation efforts to help win the battle of precise poverty alleviation; facing the tense situation of natural gas supply in winter, we should speed up the construction of production, supply, storage and marketing system, expand resources in every possible way, and actively guarantee the stable supply of civil natural gas.
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