Energy Companies



Sinopec – China Petroleum and Chemical Corporation

Key Facts

Forbes China Ranking/Forbes 2000 Ranking: 4/71
Sales (US$): 99.03bn
Profits (US$): 5.07bn
Assets (US$): 65.83bn
Market Capitalisation (US$): 93.57bn


Sinopec operates a vertically integrated company, operating along the length of the operation chain, from production to sales and marketing. It is China’s largest producer and supplier of oil and petrochemical products and also the country’s second largest crude oil producer. The company operates a broad range of activities covering oil and gas exploration, refinement of raw materials, transportation of oil products, export and imports, as well as research and development into new technologies. To carry out this work the company has in excess of 80 named subsidiaries that are governed by centralised corporate governance system, with large-scale decisions coming from the board but a significant amount of authority being delegated to the subordinate companies.

Sinopec has been listed on three stock exchanges, namely those in New York, London, Hong Kong since 18 October, 2000 and the Shanghai bourse since 16 July, 2001, after the company’s foundation on 25 February, 2000. A total of 16.8 billion shares were issued at the time of flotation in the first three cities and a further 2.8 billion in Shanghai. The total number of shares issued now stands at 86.7 billion, three quarters of which are owned by the State by means of the Sinopec Group, meaning that the company is essentially controlled by that State.
According to company literature, Sinopec is committed to maximising the returns for shareholders on their investment, through profit maximisation. Policies of cost reduction and shrewd investment stand hand in hand with the goals of competition and openness to make the company as successful as possible and thus a prudent choice for existing and potential shareholders.
Part of the company’s future success will come from a deal struck in February 2007 with Saudi Aramco and Exxon Mobil. A joint effort between the three companies will boost oil refining capacity in Fujian province to three times their existing levels by 2009. Further, the three partners will manage a network of distribution points in the province.


Sinopec in the sponsor of what is currently the largest sporting event in China, the Chinese Grand Prix, held in Shanghai since 2004. It also was the first petroleum company in China to open a combined drive-through and fast food restaurant, in a district of Beijing.

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