Minsheng Securities·2024-03-24 16:00Investment Rating - The report maintains a "Recommended" rating for Sinopec (600028.SH) [4][5] Core Views - The company's non-recurring profit increased by 4.7% year-on-year, highlighting the stability of state-owned enterprises in profitability and high dividend characteristics [1] - Despite a 3.2% decline in total revenue to CNY 3,212.22 billion and a 9.9% decrease in net profit to CNY 60.46 billion, the company achieved a significant increase in its non-recurring net profit [1][4] - The exploration and development segment showed steady growth in natural gas production, while oil and gas prices and costs decreased [1][3] - The refining segment achieved a record high in crude oil processing volume, with a recovery in refined oil processing margins [1][3] - The marketing and distribution segment expanded market reach and reduced circulation costs, resulting in a 15.6% increase in total refined oil sales volume [1][3] Summary by Sections Financial Performance - In 2023, Sinopec reported total revenue of CNY 3,212.22 billion, a decrease of 3.2% year-on-year, and a net profit of CNY 60.46 billion, down 9.9% [1][5] - The company plans to produce 2.79 billion barrels of crude oil and 13,797 billion cubic feet of natural gas in 2024, with respective year-on-year changes of -0.7% and +3.1% [1][5] - The company’s cash operating cost for oil and gas decreased by 6.8% to USD 15.1 per barrel of oil equivalent [1] Exploration and Development - As of the end of 2023, Sinopec's proven oil reserves reached 2.003 billion barrels, an increase of 0.041 billion barrels year-on-year, while proven natural gas reserves rose to 93,110 billion cubic feet, up 5.05 billion cubic feet [1][3] - The company achieved an oil and gas equivalent production of 504 million barrels, a year-on-year increase of 3.1% [1] Refining - The company processed 258 million tons of crude oil in 2023, a 6.3% increase year-on-year, and produced 156 million tons of refined oil, an 11.3% increase [1][3] - The unit refining margin increased to CNY 353 per ton, a year-on-year increase of CNY 9 per ton [1] Marketing and Distribution - The total sales volume of refined oil reached 239 million tons, a 15.6% increase year-on-year, with domestic sales hitting a record high of 188 million tons [1][3] - The company reduced cash sales expenses per ton of oil by 7.3% to CNY 193.4 per ton [3] Chemical Segment - The chemical segment faced challenges but managed to narrow losses, with a focus on cost control and increasing the proportion of high-value-added products [3]