Annual Report 2012

In 2012, refining margin was RMB 156.5
per tonne, representing an increase of
RMB 121.8 per tonne compared with
2011. This was mainly attributable to
higher product price. The government
adjusted domestic oil products prices in
line with crude oil price change, while
the segment seized market opportunities,
adjusted product mix and expanded sales
volume of value added products.
In 2012, the unit refining cash operating
cost (defined as operating expenses
less the processing cost of crude oil
and refining feedstock, depreciation and
amortization, taxes other than income
tax and other operating expenses, and
divided by the throughput of crude oil
and refining feedstock) was RMB 157.5
per tonne, representing an increase of
RMB 8 per tonne over 2011. This was
mainly attributed to the cost increase in
externally purchased auxiliary materials,
power and fuels.
In 2012, the operating loss of the
segment totaled RMB 11.4 billion,
representing a decrease in loss of RMB
24.3 billion as compared with the same
period of 2011.
(3) Marketing and Distribution Segment
The business of marketing and
distribution segment includes purchasing
refined oil products from the refining
segment and third parties, conducting
wholesale and direct sales to domestic
customers and retailing, distributing oil
products through the segment’s retail
and distribution network, as well as
providing related services.
In 2012, the operating revenues of this
segment were RMB 1,471.9 billion,
increased by 9.2 % over 2011. Of which:
the sales revenues of gasoline totaled
RMB 461.2 billion, which increased by
15.5 % comparing with the same period
of 2011; the sales revenues of diesel and
kerosene were RMB 727.0 billion and
RMB 120.2 billion, and increased by 4.4
% and 17.7 %, respectively, over 2011.
The following table sets forth the sales volumes, average realized prices, and respective change rates of the four product categories in 2012 and
2011, including detailed information of different sales channels for gasoline and diesel:
Sales Volume (Thousand tonnes) Average realized price (RMB/tonne)
Year ended 31 December Change Year ended 31 December Change
2012 2011 (%) 2012 2011 (%)
Gasoline 53,535 47,540 12.6 8,614 8,403 2.5
Of which: Retail 45,477 40,380 12.6 8,744 8,509 2.8
Direct sales 3,577 2,514 42.3 7,505 7,636 (1.7)
Wholesale 4,481 4,647 (3.6) 8,182 7,889 3.7
Diesel 100,790 98,508 2.3 7,213 7,072 2.0
Of which: Retail 57,382 55,521 3.4 7,454 7,247 2.9
Direct sales 32,355 31,998 1.1 6,882 6,853 0.4
Wholesale 11,053 10,988 0.6 6,932 6,824 1.6
Kerosene 18,741 16,493 13.6 6,416 6,192 3.6
Fuel oil 29,690 26,560 11.8 4,622 4,486 3.0
In 2012, the operating expenses of the
segment were RMB 1,429.2 billion,
representing an increase of RMB 126.3
billion or 9.7 % as compared with that
in 2011. This was mainly due to increase
of both volume and price of oil products.
Thus, the purchase costs increased by
RMB 120.1 billion or 9.6% as compared
with 2011.
In 2012, the segment’s marketing cash
operating cost (defined as the operating
expenses less the purchase costs, taxes
other than income tax, depreciation
and amortization, and then divided by
the sales volume) were RMB 186.3 per
tonne, representing an increase of 0.8 %
compared with that of 2011.
In 2012, the operating profit of
this segment was RMB 42.7 billion,
representing a decrease of 4.6 %
comparing with 2011.
(4) Chemicals Segment
The business activities of the chemicals
segment include purchasing chemical
feedstock from the refining segment and
third parties, producing, marketing and
distributing petrochemical and inorganic
chemical products.
In 2012, the operating revenues of the
chemicals segment were RMB 412.0
billion, representing a decrease of 2.0%
as compared with that of 2011.This
was primarily due to the continuing low
demand of chemical products as a result
of macroeconomic downturn, which
had led to a major drop in chemical
product prices,
The sales revenue generated from
this segment’s six major categories of
chemical products (namely basic organic
chemicals, synthetic resin, synthetic
rubber, synthetic fiber monomer and
polymer, synthetic fiber and chemical
fertilizer) totaled approximately RMB
393.9 billion, representing a decrease of
2.1 % as compared with the same period
of 2011, and accounting for 95.6 % of
the operating revenues of the segment.
23
CHINA PETROLEUM & CHEMICAL CORPORATION Annual Report 2012
Management’s Discussion
and Analysis