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Dow Jones, Nasdaq, S&P 500 weekly preview: Nvidia earnings to take center stage
U.S. stocks climbed on Friday after Federal Reserve Chair Jerome Powell hinted that interest rate cuts are on the horizon.The Dow Jones Industrial Average rose by 462.30 points, or 1.14%, reaching 41,Investing.com
Mon, Aug 26
[Press Release] PetroChina (00857.HK / 601857.SS) 2024 Interim Results
PetroChina Posted Another Record High Operating Results for 1H 2024(26 August 2024) – PetroChina Company Limited (“PetroChina” or the “Company”, HKSE: 00857, SSE: 601857) announced its operating results for the first half of 2024. The Company strengthened market analysis and proactively responded to multiple challenges. While pursuing high-quality development, it adhered to the principle of seeking progress in a steady manner. Coordinated efforts were made to drive business development and further enhance business quality and profitability, in tandem with the initiative to promote reform, innovation, safety and environmental protection. The core oil and gas businesses and other operations remained stable and profitable, with key production indicators growing steadily. The Company achieved record high first half operating results for three consecutive years. All businesses were profitable, and the financial position remained sound.In accordance with IFRS, the Company posted operating income of RMB 1.6 trillion in the first half of 2024, representing a 5% year-on-year increase. Net profit attributable to equity holders of the Company reached RMB 88.61 billion, up 3.9% year-on-year. The annualized average return on equity amounted to 10.4%. With continuous optimization of its asset-liability structure, the Company retained a robust financial position. The debt-to-asset ratio dropped by 1.4 percentage points to 39.4% from the end of the previous year. It was the lowest first half figure for the last 14 years. Meanwhile, the debt-to-capital ratio declined by 3.9 percentage points to 11.3% from the end of the previous year. It hit the lowest level in the same period for the last 16 years. To reward shareholders, the Board of Directors decided to distribute an interim dividend of RMB 0.22 per share for the first half of 2024, with total dividend payout reaching RMB 40.26 billion. This marks the third consecutive year for the Company to pay a record high interim dividend.Results ReviewSteady enhancement in oil, gas and new energies supply capacity. As the Company remained committed to effective exploration, significant breakthroughs and discoveries were made in Tarim Basin, Sichuan Basin and Junggar Basin, leading to the discovery of several large-scale proved oil and gas reserves. It made solid progress in scientific and preliminary exploration at ultra-deep (10,000-meter) oil and gas fields. Notably, the drilling of Well-Shenditake 1 exceeded 10,000 meters, setting a new record for the deepest vertical well drilled in Asia.With an emphasis on cost-effective development, the Company strengthened investment and cost management, optimized development strategies, and prioritized capacity building based on profitability metrics. Considerable efforts were devoted to controlling the decline rates of mature oil and gas fields and improving their recovery rates. The Company's overseas asset structure was further optimized, with key projects running smoothly.In the first half of 2024, the Company's total production in oil equivalent terms increased by 1.3% year-on-year to 123 million tons. Crude oil production reached 64.45 million tons, and marketable natural gas output reached 73.18 billion cubic meters.The Company actively promoted the development of large-scale new energies bases and participated in competitive allocation of new energies approval. It newly acquired 7.25 million kilowatts of wind and photovoltaic power generation approval and signed contracts for geothermal heating services covering an area of 46.15 million square meters. In the first half of 2024, the energy output from wind and photovoltaic power plants reached 2.17 billion kilowatt-hours, and power supply for external users reached 950 million kilowatt-hours, 2.5 times and 4.5 times of the same period last year respectively.The Company further advanced the development of CCUS (carbon capture, utilization, and storage) business, and injected 0.84 million tons of CO2. The oil, gas and new energies business generated an operating profit of RMB 91.66 billion, representing a 7.2% year-on-year growth.Substantial progress in transformation and upgrading of refining, chemicals and new materials business. In response to market demands fluctuation, the Company optimized the resources of crude oil, processing load, product mix, and facility maintenance schedules. It strengthened the connection of its industrial chain operations and enhanced the mutual supply of raw materials. While maintaining high utilization rates of ethylene and aromatics facilities, the Company established PetroChina Blue Ocean New Materials Company to actively develop new chemical products and materials. Pursuant to the principles of high-end, intelligent, and green development, the Company continued to drive the transformation and upgrading of refining and chemical operations. Several key ethylene projects progressed in a smooth and orderly manner, including in Jilin Petrochemical, Guangxi Petrochemical and Dushanzi Petrochemical (Tarim Phase II ).In the first half of 2024, the Company processed a total of 0.69 billion barrels of crude oil, up 3.0% year-on-year. The output of refined products reached 60.12 million tons, up 2.1% year-on-year. The output of jet fuel and feature refined products increased by 42.4% and 10% year-on-year respectively. The production of chemical products amounted to 19.04 million tons, representing a 10.2% year-on-year growth. The output of new materials reached 1.07 million tons, representing an increase of 72.0% year-on-year. The refining, chemicals and new materials business achieved an operating profit of RMB 13.63 billion.Continued improvement in marketing capabilities of the marketing business. With in-depth market analysis and forecasting, the Company implemented customized marketing strategies. It enhanced integration of wholesale and retail operations, fuel and non-fuel products, and online and offline channels. Despite a decline in overall market demand, the Company strived to maintain a stable sales of refined products and increase its market share.With an aim to accelerate green and low-carbon transition, the Company actively promoted the development of integrated energy service stations which offer fuel, gas, hydrogen, electricity and non-fuel products. Besides, it further expanded the "Convenience Store + N" operating model to drive high-quality development of non-fuel business. As a result, the non-fuel business saw significant growth in gross profit.The Company optimized its global market layout, striving to reduce oil and gas procurement costs and enrich the variety of traded products. In addition, the export strategies for refined and chemical products were enhanced, leading to an increase in overall value of the industrial chain.In the first half of 2024, the Company's total sales volume of refined products reached 79.05 million tons. Domestic sales volume of these refined products amounted to 58.45 million tons. The marketing business achieved an operating profit of RMB 10.10 billion.Volume and profit growth in natural gas marketing business. The Company capitalized on favorable market condition presented by continuously rising natural gas demand, enhanced the coordination between supply and demand, and continuously optimized the structure of resource pool, which lowered its overall procurement costs.The Company strengthened its market expansion efforts by comprehensively improving natural gas sales channels and customer structure. While vigorously expanding into high-end and premium markets, it intensified efforts to acquire direct-sales and end-user customers. Moreover, the Company relentlessly developed gas power generation and new energies businesses in conjunction with continuous efforts in improving customer services to consolidate and boost its market share.The Company diversified the marketing strategies for spot LNG agent purchases and dedicated deals through exchange platform. The Company also enhanced online trading and redoubled efforts to pass on costs, hence effectively boosting sales volume and profitability. In the first half of 2024, the Company's natural gas sales reached 147.22 billion cubic meters, representing a 12.9% year-on-year increase. The domestic sales volume of natural gas amounted to 114.94 billion cubic meters, up 5.8% from the same period last year. The natural gas marketing business achieved an operating profit of RMB 16.81 billion, representing a 19.0% year-on-year increase.OutlookIn the second half of 2024, the global economy is expected to maintain moderate growth and the Chinese economy will remain on an upward trend. The Company will continue to promote high-quality development and adhere to the five major development strategies: innovation, resources, market, internationalization and green and low-carbon development.It will actively respond to market changes, adjust and optimize production and operation strategies on a timely basis, and maintain safe, stable, and profitable operations across oil and gas value chains and of other businesses. The Company will further enhance its development quality and profitability, striving to create greater value for its shareholders.###Additional information on PetroChina is available at the Company’s website: http://www.petrochina.com.cnIssued by PetroChina Company LimitedFor further information, please contact:PetroChina Company Limited PR Agency (Overseas media): PRChina LimitedJoanne Liu Fax: (852) 2522 9955Tel: (852) 2522 1838Email: petrochina@prchina.com.hk PR Agency (Domestic media): EverBloom Investment Consulting Co., Ltd.Di Shen Fax: (8610) 8562 3181Tel: (8610) 5166 3828Email: zhongshiyou.list@everbloom.com.cn File: [Press Release] PetroChina 2024 Interim Results26/08/2024 Dissemination of a Financial Press Release, transmitted by EQS News.The issuer is solely responsible for the content of this announcement.Media archive at www.todayir.comEQS
Mon, Aug 26
Indonesia shares higher at close of trade; Jakarta Stock Exchange Composite up 0.97%
Investing.com – Indonesia equities were higher at the close on Monday, as gains in the Financials, Infrastructure and Agriculture sectors propelled shares higher.At the close in Jakarta, the Jakarta SInvesting.com
Mon, Aug 26
Explore the Wonders of Macao: Participate in the “Experience Macao Limited Edition”
To showcase Macao’s rich tourism resources and unique culture, the Macao Government Tourism Office (MGTO) officially launched the International “Experience Macao Limited Edition” campaign at an online press conference on August 26 at 11:00 AM (Beijing time). During the conference, MGTO Director Maria Helena de Senna Fernandes, along with representatives from Galaxy Entertainment Group, Melco Resorts & Entertainment, MGM China, Sands China, Wynn Macao, and SJM Holdings, detailed the event’s rules and impressive prizes. This campaign combines an online game with offline experiences, aiming to attract International visitors to explore the enchanting charm of Macao.A major highlight of the campaign is the exclusive theme song “Lovin' My Stay,” created for this campaign by the Macao Government Tourism Office (MGTO). The song is performed by MIYEON of the South Korean girl group (G)I-DLE, who also came to Macao to film the music video (MV). Through this MV, audiences can experience Macao’s unique allure in tune with MIYEON’s music.During the campaign, participants can register on the ExperienceMacaoLimitedEdition.com website and answer three questions related to Macao daily for a chance to win one of 100 “Experience Macao Limited Edition prizes” . The campaign is divided into three phases: Phase 1 from August 26 to September 4, Phase 2 from September 16 to September 25, and Phase 3 from October 7 to October 17. Participants who answer all three questions correctly will have a chance to enter the draw and win opportunities to unlock more experiences in Macao. Prizes include round-trip flights to Macao, premium accommodations, and unique experiences meticulously arranged by MGTO in collaboration with Macao’s six major integrated resorts. These experiences include cultural visits, intangible cultural heritage, Michelin-starred dining, and entertainment activities, providing winners with an unforgettable journey through Macao.Additionally, a special “Ultimate Experience Macao Limited Edition Prize” is set. Among the 100 prize winners, the participant who receives the most likes on social media by sharing their Macao experience before December 31, 2024, will win the Ultimate Experience Macao Limited Edition Prize—a 30-day free trip to Macao. The Ultimate Experience Macao Limited Edition Prize winner will have the opportunity to explore top attractions and rich culture throughout Macao, fully enjoying its endless charm.Whether you are a devoted fan of Macao or a newcomer from around the world, this interactive experience is not to be missed. For more information about the event, please follow the official Instagram account of the Macao Government Tourism Office, @visitmacao, where all winners will be announced. More details can be found on the Macao Government Tourism Office’s other official social media platforms.For more information, please visit: Official Website: ExperienceMacaoLimitedEdition.com Instagram: @visitmacaoFacebook: https://www.facebook.com/visitmacao/26/08/2024 Dissemination of a Financial Press Release, transmitted by EQS News.The issuer is solely responsible for the content of this announcement.Media archive at www.todayir.comEQS
Mon, Aug 26
Explore the Wonders of Macao: Participate in the “Experience Macao Limited Edition”
To showcase Macao’s rich tourism resources and unique culture, the Macao Government Tourism Office (MGTO) officially launched the International “Experience Macao Limited Edition” campaign at an online press conference on August 26 at 11:00 AM (Beijing time). During the conference, MGTO Director Maria Helena de Senna Fernandes, along with representatives from Galaxy Entertainment Group, Melco Resorts & Entertainment, MGM China, Sands China, Wynn Macao, and SJM Holdings, detailed the event’s rules and impressive prizes. This campaign combines an online game with offline experiences, aiming to attract International visitors to explore the enchanting charm of Macao.A major highlight of the campaign is the exclusive theme song “Lovin' My Stay,” created for this campaign by the Macao Government Tourism Office (MGTO). The song is performed by MIYEON of the South Korean girl group (G)I-DLE, who also came to Macao to film the music video (MV). Through this MV, audiences can experience Macao’s unique allure in tune with MIYEON’s music.During the campaign, participants can register on the ExperienceMacaoLimitedEdition.com website and answer three questions related to Macao daily for a chance to win one of 100 “Experience Macao Limited Edition prizes” . The campaign is divided into three phases: Phase 1 from August 26 to September 4, Phase 2 from September 16 to September 25, and Phase 3 from October 7 to October 17. Participants who answer all three questions correctly will have a chance to enter the draw and win opportunities to unlock more experiences in Macao. Prizes include round-trip flights to Macao, premium accommodations, and unique experiences meticulously arranged by MGTO in collaboration with Macao’s six major integrated resorts. These experiences include cultural visits, intangible cultural heritage, Michelin-starred dining, and entertainment activities, providing winners with an unforgettable journey through Macao.Additionally, a special “Ultimate Experience Macao Limited Edition Prize” is set. Among the 100 prize winners, the participant who receives the most likes on social media by sharing their Macao experience before December 31, 2024, will win the Ultimate Experience Macao Limited Edition Prize—a 30-day free trip to Macao. The Ultimate Experience Macao Limited Edition Prize winner will have the opportunity to explore top attractions and rich culture throughout Macao, fully enjoying its endless charm.Whether you are a devoted fan of Macao or a newcomer from around the world, this interactive experience is not to be missed. For more information about the event, please follow the official Instagram account of the Macao Government Tourism Office, @visitmacao, where all winners will be announced. More details can be found on the Macao Government Tourism Office’s other official social media platforms.For more information, please visit: Official Website: ExperienceMacaoLimitedEdition.com Instagram: @visitmacaoFacebook: https://www.facebook.com/visitmacao/26/08/2024 Dissemination of a Financial Press Release, transmitted by EQS News.The issuer is solely responsible for the content of this announcement.Media archive at www.todayir.comEQS
Mon, Aug 26
IBM Unveils Comprehensive "Sustainability Technology Guide for Executives": A Blueprint for Driving Sustainable Business Impacts in Asia Pacific
Only one fifth of Asia Pacific organizations have a truly strategic approach to sustainability, with the integration of automation and AI system data with enterprise data being thePR Newswire
Mon, Aug 26
Sinopec Announces FY2024 Interim Results
Press release(For immediate release)Sinopec Delivered Promising 2024 Interim ResultsThe Board Approved of the “Action of Corporate Value and Return Plan”Proposed to Distribute Cash Dividends of Not Less Than 65% of Annual Profit in Next Three Years(25 August 2024, Beijing, China) China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028) today announced its interim results for the six months ended 30 June 2024.Financial HighlightsIn accordance with IFRS, the Company’s operating revenue for the first half of 2024 reached RMB 1.58 trillion. Profit attributable to shareholders of the Company was RMB 37.079 billion, up 2.6% year-on-year; basic earnings per share were RMB 0.307, up 2.0% year-on-year. In accordance with CASs, the Company’s net profit attributable to shareholders of the Company was RMB 35.703 billion, up 1.7% year-on-year; basic earnings per share were RMB 0.296, up 1.0% year-on-year. The Board of Directors has resolved to distribute an interim cash dividend of RMB 0.146 per share (tax inclusive). In accordance with CASs, the interim dividend payout ratio amounted to 49.8%. Moreover, the Board of Directors has approved of the share repurchase plan with an aim to boost the enterprise value.The Board of Directors has approved of the “Action of Corporate Value and Return Plan”. In order to share its achievements with shareholders, the Board proposed the profit distribution plan for the next three years (2024-2026). Pursuant to it, the cash dividends payout ratio shall be not less than 65%.The Company’s oil and gas output in the first half reached approximately 258 million barrels of oil equivalent, up 3.1% year-on-year. Natural gas production reached approximately 700.6 billion cubic feet, up 6.0% year-on-year; refinery throughput was 127 million tonnes, up 0.1% year-on-year; total sales volume of refined oil products was approximately 119 million tonnes, up 2.1% year-on-year; ethylene production was 6.496 million tonnes.Focusing on efforts to cut carbon emissions, reduce pollution, increase efficiency and promote green development, the Company formulated the Second Phase Plan of the Green Enterprise Campaign of Sinopec Corp. It set the following main targets through 2028: emission intensities of carbon dioxide and methane decrease by 5% and 20% respectively compared with 2023, capture and utilise 2.5 million tonnes of carbon dioxide per year, 100% compliance rate of carbon emission trading; over 92% comprehensive utilisation rate of industrial solid waste, 100% compliance disposal rate of hazardous waste; comprehensive energy consumption per RMB10,000 of production output decreases by 5% compared with 2023, over 60% reuse rate of wastewater.Mr. Ma Yongsheng, the Chairman of the Company, said: Going forward, we will thoroughly implement reforms to promote high-quality development, attach great importance to innovation-driven growth, accelerate business transformation and upgrading, strengthen lean management, and strive hard to overcome difficulties and create value. The Company will strengthen operational quality and further enhance profitability. By giving full play to our integrated operation, we will optimize the industrial chain and regional layout and reinforce cost management, thereby maximizing our profitability. Enhanced efforts will be made to promote the business transformation and upgrading, and new productive forces will be cultivated and developed. We will commit ourselves to the innovation-driven strategy so as to drive the business transformation and upgrading and the development of emerging businesses. As for the upstream business, we will insist on the expansion of oil and gas business, and the development of natural gas production, supply, storage and marketing system will be accelerated. The development of a multi-energy complementary system comprising “oil and gas + new energies” will be expedited by enhancing efforts to develop new energies such as hydrogen energy, wind power and solar power. As for the refining business, we will speed up the construction of "high-end, intelligent and green" production bases, coordinate the development of low-cost “oil to chemicals” projects and the projects for “oil to specialties with differentiated features”, and proactively formulate the plan for the development of emerging businesses such as new materials and bio-technology. As for the marketing business, we will further optimize the network layout, push for the development of EV battery charging and swapping service and gas filling station network along with the expansion of demonstrating application scenarios for hydrogen mobility. Moreover, the Easy Joy service ecosystem will be enhanced in order to sharpen the competitive edges of our integrated energy service network involving “petrol, gas, hydrogen, power and services”. Meanwhile, the Company will strive to improve ESG and promote sustainable development. Persistent efforts will be made to continually enhance our corporate governance system and establish a modern enterprise system. At the same time, the Company will proactively respond to the climate change, implement Carbon Peak Action Plan and the second phase of Green Enterprise Action Plan in a steady manner. Large-scale application of negative emission technologies such as CCUS will be promoted in conjunction with coordinated efforts to cut carbon emissions, reduce pollution, increase efficiency and promote green development, thereby contributing our efforts to promote the green transition of the society. We will also actively fulfill our social responsibilities and improve stakeholders’ satisfaction. By strengthening the ESG system, we will boost the ESG performance and promote our sustainable development. The Company will vigorously enhance the communication with stakeholders and increase the enterprise value. In adherence to the investor-centric approach, we will continuously improve the quality of our information disclosures and investor relations work. While making persistent efforts to refine the mechanism for stakeholder consultation and feedback, we will reply to investors’ enquiries on a timely basis, increase our recognition in the market and increase the enterprise value.Business ReviewIn the first half of 2024, China’s economy sustained recovery momentum, registering GDP growth of 5.0% year-on-year. Based on the Company’s statistics, domestic demand for natural gas increased rapidly with apparent consumption up by 10% year on year. Due to the decline in diesel demand, domestic consumption of refined oil products decreased by 0.5% year on year. Domestic demand for chemicals kept growing with ethylene equivalent consumption up by 4.3% year on year. In the first half of 2024, international oil prices fluctuated widely, with the average spot price of Platts Brent was USD 84.1 per barrel, up by 5.3% year-on-year.Exploration and ProductionIn the first half of 2024, the Company intensified efforts in high quality exploration and profit-oriented development, yielding good results in adding reserves and production, cutting cost and increasing profit. Domestic production for oil and gas equivalents hit record high for the same period. In terms of exploration, the Company strengthened geophysical, risk and integrated evaluation exploration, and achieved major exploration breakthroughs in shale gas of Sichuan Basin and in the new area of Beibu Gulf Basin. The construction of Shengli Jiyang Shale Oil National Demonstration Zone was promoted efficiently. In terms of crude oil development, the Company carried forward the key capacity building of offshore Shengli, Tahe and Beibu Gulf Basin, and strengthened fine-tuned development in mature fields. In terms of natural gas development, it progressed with the key capacity building projects in Shunbei Zone Two and West Sichuan marine facies gas. It further enhanced the integrated operation of natural gas production, supply, storage and sales and the profitability of the whole natural gas business chain went up remarkably year on year, recording a new high. The Company’s production of oil and gas in the first half of 2024 was 257.66 million barrels of oil equivalent, up by 3.1%, among which domestic crude oil production totaled 126.49 million barrels, up by 1.5% year-on-year and natural gas production reached 700.57 billion cubic feet, up by 6.0% year-on-year.In the first half of 2024, operating revenue of the segment was RMB153.8 billion, representing an increase of 6.1% year-on-year. This was mainly due to the increase in crude oil price and the sales volume of crude oil and natural gas products. In the first half of 2024, the oil and gas lifting cost was RMB753.4 per tonne, representing a decrease of 0.4% year-on-year. In the first half of 2024, this segment seized the opportunity of relative high crude oil prices, spared no efforts to increase reserves, boost production, cut cost, achieved good performance, strengthened the optimization of the whole natural gas industry chain, and realised an operating profit of RMB29.1 billion, representing an increase of RMB3.7 billion or 14.7% year-on-year.Exploration and Production: Summary of Operations Six-month periods ended 30 June Changes 2024 2023 % Oil and gas production (mmboe) 257.66 249.88 3.1 Crude oil production (mmbbls) 140.53 139.68 0.6 China 126.49 124.68 1.5 Overseas 14.04 15.00 (6.4) Natural gas production (bcf) 700.57 660.88 6.0 RefiningIn the first half of the year, facing severe challenges brought by the weak market demand and narrowing margin of certain refinery products, the Company adhered to the integration of production and marketing by closely following market demand, optimized utilization rate and product mix and increased production based on profitability. It dynamically coordinated procurement, storage and transportation, and production to reduce procurement cost. Besides, it optimised the rhythm of carrying forward the “oil to chemicals” and “oil to specialties” projects, and produced more market-favored products such as gasoline and jet fuel. Efforts were also made to seize opportunities in overseas market and optimized export scheduling and structure. In the first half of 2024, the Company processed 126.69 million tonnes of crude and produced 77.30 million tonnes of refined oil products, up by 1.6% with gasoline and kerosene output up by 6.6% and 15.2% respectively year on year.In the first half of 2024, operating revenues of the segment were RMB749.7 billion, representing an increase of 2.8% year-on-year. This was mainly due to the increased price of refined oil products and others year-on-year resulting from increased price of international crude oil. In the first half of 2024, the unit refining cash operating cost (defined as operating expenses less cost of crude oil and refining feedstock, depreciation and amortisation, taxes other than income tax and other operating expenses, divided by the throughput of crude oil and refining feedstock) was RMB195.4 per tonne, representing a decrease of 4.5% year-on-year, which was mainly due to the decrease in costs of power and fuels resulting from enhancing cost control. In the first half of 2024, the segment focused on optimisation and integration of production and marketing, flexibly and timely adjusted the utilisation rate and product structure following the market demand, made every effort to reduce the impact of rising crude oil procurement costs and weak market demand, and realised an operating profit of RMB7.1 billion, decreased by RMB4.3 billion or 37.6% year-on-year.Refining: Summary of Operations Six-month periods ended 30 June Changes 2024 2023 (%) Refinery throughput (million tonnes) 126.69 126.54 0.1 Gasoline, diesel and kerosene production (million tonnes) 77.30 76.07 1.6 Gasoline (million tonnes) 32.34 30.33 6.6 Diesel (million tonnes) 29.31 32.15 (8.8) Kerosene (million tonnes) 15.65 13.59 15.2 Light chemical feedstock production (million tonnes) 19.79 21.36 (7.4) Note: Includes 100% of the production of domestic joint ventures.Marketing and DistributionIn the first half of 2024, the Company actively addressed the challenges of weak diesel demand and rapid growth of electric vehicles. By taking a client-focused approach, it brought its advantages in integrated business into full play and expanded the market through high quality service. The Company carried out special marketing campaign and differentiated marketing strategy, boosting sales of gasoline and jet fuel. Measures were taken to effectively cement existing marketing network and promote the growth of EV battery charging and gas fueling business with charging volume and vehicle LNG operating volume both going up significantly. It promoted steady development of hydrogen transportation and actively transformed into an integrated energy service provider of petro, gas, hydrogen, power and services. At the same time, the Company reinforced the buildup of proprietary brands, enriched diversified non-fuel business models for Easy Joy and upgraded the operating quality of non-fuel business. Total sales volume of refined oil products for the first half of the year was 119.01 million tonnes, up by 2.1%, of which total domestic sales volume accounting for 90.14 million tonnes.In the first half of 2024, the operating revenues of this segment were RMB863.5 billion, decreased by 0.9% year-on-year. This was mainly attributable to decreased demand and sales volume for diesel year-on-year. In the first half of 2024, the segment persisted in integrating and collaborating to achieve profits, spared no effort to expand market and increase sales volume, but was impacted by factors including new energy and LNG substitution. The segment realised an operating profit of RMB14.6 billion, representing a decrease of RMB2.3 billion year-on-year, down by 13.7% year-on-year. The profit of non-fuel business was RMB2.6 billion, representing a decrease of RMB0.09 billion year-on-year.Marketing and Distribution: Summary of Operations Six-month periods ended 30 June Changes 2024 2023 % Total sales volume of refined oil products (million tonnes) 119.01 116.60 2.1 Total domestic sales volume of refined oil products (million tonnes) 90.14 92.47 (2.5) Retail (million tonnes) 56.96 59.76 (4.7) Direct sales and distribution(million tonnes) 33.18 32.71 1.4 Note: The total sales volume of refined oil products includes the amount of refined oil marketing and trading sales volume. As of 30 June 2024 As of 31 Dec 2023 Changes from the end of previous year（%） Total number of Sinopec-branded service stations 30,959 30,958 0.0 Number of convenience stores 28,633 28,431 0.7 ChemicalsIn the first half of 2024, the domestic chemical market was still in the trough of business cycle. The Company kept up with the market demand and strengthened coordination of refining and chemical business, regional collaboration and integration of production, sales and R&D efforts. It beefed up cost reduction efforts and achieved notable results in tapping potential and raising profits. Feedstock was further diversified to lower cost. The Company also ran profitable units such as aromatics at high utilization rate, arranged utilization rate cut as well as operational shutdown for units with negative marginal profits and increased the proportion of high value-added products steadily. In the first half of the year, ethylene production was 6.496 million tonnes. Production of synthetic fibre monomer and polymer was up by 17.8% year on year. The Company enhanced cooperation with strategic customers, pushed forward tailor-made product services and explored both domestic and overseas markets with export volume up by 17.8%. The total chemical sales volume in the first half reached 40.06 million tonnes with all products produced were sold.In the first half of 2024, the operating revenues of this segment were RMB257.3 billion, up by 5.3% year-on-year. This was mainly due to increase in sales volume and prices of chemical products year-on-year. In the first half of 2024, the segment closely followed the market demand, enhanced integration of production, marketing, research in all aspects, dynamically measured product marginal profit, vigorously optimised the structure of feedstock, facilities and products, made efforts to increase production of high value-added products, enhanced cost control and realised an operating loss of RMB3.2 billion, narrowing by RMB0.2 billion year-on-year.Major Chemical Products: Summary of Operations Unit of production: 1,000 tonnes Six-month periods ended 30 June Changes 2024 2023 (%) Ethylene 6,496 6,875 (5.5) Synthetic resin 9,784 9,793 (0.1) Synthetic fiber monomer and polymer 4,598 3,903 17.8 Synthetic fiber 633 519 22.0 Synthetic rubber 678 670 1.2 Note: Includes 100% of the production of domestic joint ventures.Safety and HealthIn the first half of 2024, the Company continuously improved the HSE management system and ensured professional HSE operation. It implemented the all-staff safety production responsibility system, launched the “Safety Management Enhancement Year” campaign. The Company strengthened the rectification and elimination of safety risks and potential dangers and maintained the stability of safety production. It promoted the occupational health management system and construction of “A Healthy Company” with health management level going up steadily.Science and Technology InnovationIn the first half of 2024, the Company further promoted the reform of the science and technology system and mechanism, sought breakthroughs in key and core technologies, and built national-level R&D institutions for the energy industry, all contributing to better innovation-driven effects. Breakthrough was made in deep and ultra-deep shale gas exploration theory and technology. The shale oil development technology was successfully employed in depression basins such as Jiyang and Northern Jiangsu for building profitable production capacity. The Company achieved industrial application of strip fluidized bed residue hydrogenation catalyst and put into operation the cyclohexene esterification hydrogenation to cyclohexanone unit. It upgraded the intelligent operation center and intelligent production facilities, and put into use digital applications such as digital twins and 5G technologies.Capital ExpendituresThe Company focused on the quality and return of investment and continued to optimize its capital projects management. In the first half of the year, total capital expenditures were RMB55.893 billion. Capital expenditure for the exploration and production segment was RMB33.788 billion, mainly for crude oil capacity building in Jiyang and Tahe, natural gas capacity building in West Sichuan and the construction of oil and gas storage and transportation facilities. Capital expenditure for the refining segment was RMB9.201 billion, mainly for Zhenhai expansion, technical upgrading in Guangzhou and Maoming companies. Capital expenditure for the marketing and distribution segment was RMB2.952 billion was spent in the marketing and distribution segment, mainly for the development of integrated energy station network, revamping of the existing end-user network and non-fuel business. Capital expenditure for the chemicals segment was RMB8.633 billion, mainly for ethylene projects in Zhenhai phase II and Maoming and high-end materials projects etc. Capital expenditure for the corporate and other segment were RMB1.319 billion, mainly for R&D facilities and information technology application projects.Business OutlookIn the second half of 2024, China’s economy is expected to further improve. Domestic demand for natural gas and chemical products is expected to improve, and that for refined oil products will remain stable. Given the impacts of geopolitics, and changes in the global supply, demand and inventory, the international crude oil prices are expected to fluctuate widely. The Company will leverage advantages of integration, and enhance coordinated operation to strive for a high-quality performance. It will stress on the following aspects:E&P: The Company will continue to add oil and gas reserve, stabilize oil output, increase gas production, and cut costs, so as to strive for better profitability. It will enhance exploration and trap pre-exploration, increase the quality and scale of reserves. Besides, it will accelerate the capacity construction of oil and gas production in areas such as Shengli offshore, west Junggar, and Shunbei Zone Two, strengthen the application of technologies for EOR, and take measures to reduce the break-even point. It will expedite the construction of the production, supply, storage, and marketing system of natural gas, diversify the supply of natural gas, reduce resource costs, optimize marketing strategies, and expand high-quality customers. Its plan for the second half of 2024 is to produce 139 million barrels of crude oil and 679.5 billion cubic feet of natural gas.Refining: The Company will adhere will insist on the synergistic development between production and marketing, flexibly adjust the product mix and the utilization rates to ensure efficient operation of the industrial chain to the coordination of production and sales, adjust product slate and utilization rate focusing on profitability, and ensure the efficient operation of the value chain. It will dynamically optimize the procurement scale and rhythm, reduce procurement costs, and improve the slate mix and rhythm of exported products. It will stress insist on low-cost “oil to chemicals” and differentiated “oil to specialty” products”, effectively cut the diesel to gasoline ratio and diesel yield, and push promote the development of special products such as needle coke. In the second half of 2024, the Company plans to process 126 million tonnes of crude oil.Marketing and Distribution: The Company will fully leverage the advantages of integration, strengthen digital and intelligent empowerment, and press hard with market expansion of market and sales. It will keep optimizing the network layout, facilitate the construction of EV battery charging and gas refueling networks and demonstration application of hydrogen-based mobility, improve the comprehensive service of Easy Joy, enhance the quality and profitability of non-fuel businesses, and consolidate and improve the quality of the “petro, gas, hydrogen, power and services” network. In the second half of 2024, it plans to sell 91.09 million tonnes of refined oil products domestically.Chemicals: The Company will actively respond to the bottom of the chemical industry cycle, adhere to the principle of “basic + high-end”, and make every effort to reduce costs, expand markets, and tap potentials for better profits. It will continue to diversify the feed-stock and cut the costs through multiple means. In adherence to the market-oriented approach, it will maintain high utilization of profitable units, and raise the profitability of high-quality assets. It will further strengthen the synergy among production, sales, research and application, intensify promote the development of new materials and high value-added products, and increase profitability. The Company will actively expand domestic and international markets, and strengthen cooperation with strategic customers and tailored services for our products. In the second half of 2024, it plans to produce 6.85 million tonnes of ethylene.Capital Expenditure: The Company plans to spend RMB117.1 billion in the second half of 2024. RMB44.0 billion will be spent in the E&P segment, mainly for the crude oil production capacity building in Jiyang and Tahe, the natural gas production capacity building in west Sichuan, and the storage and transportation facilities building for oil and gas. RMB15.6 billion will be spent in the refining segment, mainly for the expansion of Zhenhai expansion refining and the technical upgrading and technology revamping projects of Guangzhou and Maoming companies. RMB15.4 billion will be spent in the marketing and distribution segment, mainly for developing the network for integrated energy stations, the revamping of the existing network for end-users, and non-fuel businesses. RMB37.2 billion will be spent in the chemical segment, mainly for the construction of ethylene projects in Zhenhai Phase II and Maoming, the aromatics project in Jiujiang and high-end materials projects. RMB4.9 billion will be spent for corporate and others, mainly for R&D and IT development.Appendix: Key financial data and indicatorsFINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH CASsPrincipal accounting data Items Six-month period ended 30 June Changes over the same period of the preceding year (%) 2024 (RMB million) 2023 (RMB million) (adjusted) Operating income 1,576,131 1,593,682 (1.1) Net profit attributable to equity shareholders of the Company 35,703 35,111 1.7 Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses 35,582 33,655 5.7 Net cash flow from operating activities 42,269 27,562 53.4 At 30 June 2024 (RMB million) At 31 December 2023 (RMB million) Change from the end of last year (%) Total equity attributable to equity shareholders of the Company 828,140 805,794 2.8 Total assets 2,141,936 2,026,674 5.7 Principal financial indicators Items Six-month period ended 30 June Changes over the same period of the preceding year (%) 2024 (RMB) 2023 (RMB) Basic earnings per share 0.296 0.293 1.0 Diluted earnings per share 0.296 0.293 1.0 Basic earnings per share (excluding extraordinary gains and losses) 0.295 0.281 5.0 Weighted average return on net assets (%) 4.37 4.43 (0.06)percentage points Weighted average return (excluding extraordinary gains and losses) on net assets (%) 4.36 4.25 0.11percentage points FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRSPrincipal accounting data Items Six-month period ended 30 June Changes over the same period of the preceding year (%) 2024 (RMB million) 2023 (RMB million) Operating profit 51,021 53,696 (5.0) Profit attributable to shareholders of the Company 37,079 36,122 2.6 Net cash generated from operating activities 42,269 27,562 53.4 At 30 June 2024 (RMB million) At 31 December 2023 (RMB million) Change from the end of last year (%) Total equity attributable to shareholders of the Company 825,925 802,989 2.9 Total assets 2,140,524 2,024,696 5.7 Principal financial indicators Items Six-month period ended 30 June Changes over the same period of the preceding year (%) 2024 (RMB) 2023 (RMB) (adjusted) Basic earnings per share 0.307 0.301 2.0 Diluted earnings per share 0.307 0.301 2.0 Return on capital employed (%) 4.30 4.22 0.08 percentage points The following table sets forth the operating revenues, operating expenses and operating profit/(loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage change between the first half of 2024 and the first half of 2023. Six-month period ended 30 June Changes 2024 2023 (RMB million) (%) Exploration and Production Segment Operating revenues 153,762 144,863 6.1 Operating expenses 124,614 119,455 4.3 Operating profit 29,148 25,408 14.7 Refining Segment Operating revenues 749,665 729,557 2.8 Operating expenses 742,540 718,147 3.4 Operating profit 7,125 11,410 (37.6) Marketing and Distribution Segment Operating revenues 863,497 871,348 (0.9) Operating expenses 848,849 854,379 (0.6) Operating profit 14,648 16,969 (13.7) Chemicals Segment Operating revenues 257,251 244,300 5.3 Operating expenses 260,415 247,658 5.2 Operating loss (3,164) (3,358) (5.8) Corporate and Others Operating revenues 796,568 810,518 (1.7) Operating expenses 792,264 806,961 (1.8) Operating profit 4,304 3,557 21.0 Elimination (1,040) (290) - About Sinopec Corp.Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the production, sale, storage and transportation of refinery products, petrochemical products, coal chemical products, synthetic fibre, and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information; hydrogen energy business and related services such as hydrogen production, storage, transportation and sales; battery charging and swapping, solar energy, wind energy and other new energy business and related services。DisclaimerThis press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.Investor Inquiries：Media Inquiries：BeijingHong KongTel：(86 10) 5996 0028Tel：(852) 2522 1838Fax：(86 10) 5996 0386Fax：(852) 2521 9955Email：ir@sinopec.comEmail：sinopec@prchina.com.hkFile: 【Press Release】Sinopec FY2024 Interim Results25/08/2024 Dissemination of a Financial Press Release, transmitted by EQS News.The issuer is solely responsible for the content of this announcement.Media archive at www.todayir.comEQS
Sun, Aug 25
【Press Release】China XLX Announces 2024 Interim Results
Press Release(For immediate release)China XLX Announces 2024 Interim ResultsQuality Improvement, Cost Reduction and Efficiency Enhancement Contributing to Profit Growth2024 Interim Results Highlights:The Group’s revenue increased by 0.02% YoY to approximately RMB 12.061billion; Profit attributable to owners of the parent surged by 26% YoY to approximately RMB 687million; Debt-to-assetratio has decreased for four consecutive years, and the financial condition has improved year byyear.Gearing ratio reducing to 62.7% and finance costs dropping by 18% YoY.(25 August 2024, Hong Kong) China XLX Fertiliser Ltd. (“China XLX” or the “Company”, together with its subsidiaries collectively known as the “Group”) (HKSE: 01866.HK) announced that the Group’s revenue for the six months ended 30 June 2024 (the “Period”) increased by 0.02% YoY to approximately RMB 12.061 billion. Profit attributable to owners of the parent amounted to approximately RMB 687 million, surged by 26% YoY.In the first half of 2024, despite the concentrated release of agricultural demand, demand and supply mismatch in the fertilizer industry still exist. The price of raw materials on the supply side has fluctuated downward, weakening price support for coal chemical products, which has in turn affected the prices of the Group’s fertilizer and fine chemical products. However, with the stable operation of the domestic economy, downstream demand is continuously recovering, leading to significant increases in the Group’s urea, compound fertilizer, and methanol sales. The Group has continued to optimize production processes, strictly control energy consumption indicators, and ensure stable long-term operation. Through quality improvement, cost reduction and efficiency enhancement, the Group has achieved the leading energy efficiency in synthetic ammonia production for thirteen consecutive years. With the decline in raw material costs, the overall gross profit increased by 12% year-on-year (“YoY”), contributing to profit growth for the Group.Revenue derived from the sales of urea increased 9% to approximately RMB3,834 million. This was mainly due to a 25% YoY increase in urea sales volume, but this was partially offset by a 13% YoY decrease in the average selling price. As production capacity released, the output of urea increased by 24% YoY, which helped boost sales volume. Gross profit margin of urea increased by approximately 2 percentage points from approximately 29% in 1H2023 to 31% for 1H2024, benefiting from a 15% decrease in the average sales cost of urea. On one hand, the decline in the price of coal led to a 10% YoY decrease in procurement costs. On the other hand, through the transformation and upgrade of the production lines, production consumption indicator was effectively reduced by 6% YoY.Revenue derived from the sales of compound fertilisers increased by 6% to approximately RMB3,410 million, mainly due to a 13% YoY increase in compound fertilisers sales volume, but partially offset by a 6% YoY decrease in average selling price. The release of new production capacity at the Group’s Northeast base led to a 15% YoY increase in output. At the same time, the continued optimization of the marketing model, and precise marketing strategy for each region and crop, as well as pre-orders through conference marketing, helped boost sales volume. Gross profit margin of compound fertilisers increased by approximately 6 percentage points from approximately 12% in 1H2023 to 18% in 1H2024. With the continuous decline in international potash prices, the Group’s potash procurement price decreased by 18% YoY, resulting in a 12% YoY reduction in average cost of sales. Additionally, as high-efficient compound fertilisers better meet the needs of modern agriculture, with a gross profit margin of 19%, 4 percentage points higher than ordinary fertilisers, the Group increased the proportion of high-efficiency compound fertiliser sales by 23% YoY, effectively improving the gross profit.Revenue derived from the sales of methanol increased 32% to approximately RMB1,291 million. The increase was mainly due to a 1% YoY increase in the average selling price of methanol and a 31% YoY increase in sales volume. In the first half of the year, the domestic economy has steadily advanced with notable progress, and the manufacturing sector has shown significant improvement, which has driven increased demand for methanol in downstream industries. At the same time, our group continued to expand its methanol trading activities and enhanced market competitiveness by providing supporting logistics services. As a result, new trade orders increased by 18% compared to the previous year. The gross profit margin of methanol increased by 10 percentage points from negative 2% in 1H2023 to 8% in 1H2024. Affected by the decline in raw material prices, the average methanol cost of sales decreased by 9% YoY.Revenue derived from the sales of melamine decreased by 4% to approximately RMB397 million. This was mainly due to a 6% YoY decrease in the average selling price of melamine. In the first half of the year, the domestic real estate-related industries experienced a slow recovery, with weak downstream demand. The addition of new production capacity and a rise in operating rates led to an imbalance between supply and demand, causing melamine prices to come under pressure and declined. To mitigate the adverse effects of domestic supply pressures, the group has actively expanded into international markets, securing new overseas orders in countries such as India and Malaysia. This increase in export volume has driven a 3% YoY increase in sales. The gross profit margin of melamine products decreased by 6 percentage points from 36% in 1H2023 to 30% in 1H2024. This was mainly due to the loose supply and demand situation and the weakening of raw material cost support, which resulted in a 6% YoY decrease in the average selling price of melamine.The sales revenue of DMF increased 14% to approximately RMB595 million. This was mainly due to a 31% YoY increase in DMF sales volume, while the average selling price decreased by 13% YoY. Since the planned shutdown and maintenance in the first half of last year, the production equipment has maintained stable operation, effectively increasing production by 30%, driving the increase in sales volume. The gross profit margin of DMF increased by 2 percentage points from 11% in 1H2023 to 13% in 1H2024. The increase was due to innovation of production technology and improvement of equipment, which effectively reduced the consumption of steam and electricity, and lowered the average cost by approximately 15% YoY.The Group has continuously strengthened its production and operations, accelerated capital turnover, reduced working capital occupancy, and enhanced its assets liquidity. At the same time, through various channels and forms of financing, the Group has continued to optimize its debt structure. The debt-toasset ratio has decreased for four consecutive years, and the financial condition has improved year by year. Against the backdrop of a decline in average interest rate, the Group has ensured healthy cash flow while proactively repaying high-interest loans in advance, which effectively reduced the finance costs. During the Period, the Group’s finance costs came down by 18% YoY and the gearing ratio dropped from 64.00% as at the end of 2023 to 62.70% as at the end of June.Looking ahead into the future, Mr. Liu Xingxu, Chairman of China XLX, said, “Against the backdrop of accelerating agricultural productivity improvements, the Group is seizing new trends and opportunities in agricultural services. By utilizing big data and focusing on large-scale farmers, we are restructuring our sales organisation, transforming distributors into service providers. We aim to provide integrated value-added services to end farmers with a focus on “differentiated products + precise services,” enhancing brand influence through team collaboration. At the same time, our group continues to align with long-term strategic goals, focusing on core advantages and deepening core competencies. On one hand, we are further enhancing the technical transformation of existing systems to reduce consumption. On the other hand, we are building new projects with the industry’s most advanced technology to maximize investment returns. To meet the needs of rapid development, we continuously optimize management models and, leveraging group control, establish an adaptable organizational structure to support the realization of development strategies and competitive strategies.”~ END ~About China XLX Fertiliser Ltd.China XLX Fertiliser Ltd. is one of the largest and most cost-efficient coal-based urea producers in China. It is principally engaged in developing, manufacturing and selling of urea, compound fertiliser, methanol, dimethyl ether, melamine, furfuryl alcohol, furfural, 2-methylfuran, pharmaceutical intermediates and related differentiated products. The Group adheres to the development strategy of “maintaining overall cost leadership and creating competitive differentiation" while strengthening the core fertiliser operations. With support of the resources in Xinxiang, Xinjiang and Jiangxi, it extends the value chain to upstream new energy and new materials and diversifies into coal chemical related products. The Company’s shares (stock code: 01866.HK) are traded on the main board of the Hong Kong Stock Exchange.Investor and Media Enquiries China XLX Fertiliser Ltd. Gui Lin Tel: 86-135-6942-3415 Email: gui.lin@chinaxlx.com.hk PRChina Limited Rachel Chen Tel: 852-2522 1368 / 852-2522 1838 Email: rchen@prchina.com.hk kliu@prchina.com.hk File: 【Press Release】China XLX Announces 2024 Interim Results25/08/2024 Dissemination of a Financial Press Release, transmitted by EQS News.The issuer is solely responsible for the content of this announcement.Media archive at www.todayir.comEQS
Sun, Aug 25
