EQS-News / 23/08/2021 / 15:18 UTC+8
Press Release
(For immediate release)
(Stock code: 2386)
SEG Announces 2021 Interim Results
Stable and Orderly Production and Operation
Revenue and Profit Maintain Continious Growth
(22 August 2021, Hong Kong) SINOPEC Engineering (Group) Co., Ltd. ("SEG" or the "Company", together with its subsidiaries collectively known as the "Group") (stock code: 2386) today announces its interim results for the six months ended 30 June 2021 (the "Reporting Period").
On the first half of 2021, directly facing the challenges, the Company fully grasped the development opportunity of the industrial pattern of Sinopec of "focus on building energy resources as the foundation, clean energy and synthetic materials as the two wings, and new energy, new economy and new fields as important growth points", fully promoted the upgrading and transformation of the refining and chemical industry, consolidated the revenue base, and made efforts to achieve innovation and breakthrough in fields such as hydrogen energy industry chain, new material, new energy and digital engineering; explored the advantage of collectivization to improve the efficiency of integration, did a good job in market development, project execution, safe production and epidemic prevention and control. During the Reporting Period, the Company recognized the total revenue of RMB26.851 billion, an increase of 12.8% compared with the same period of last year period-on-period, and the net profit was RMB1.347 billion, with a period-on-period increase of 6.9%. The value of new contracts entered into by the Group was RMB36.663 billion, which remained stable period-on-period. After due consideration of the Group's earnings, return to the Shareholders and the needs for future sustainable development, the Board recommended 2021 interim dividend of RMB0.091 per Share.
QHSE management system efficiency is consistently improved. The Group always adhered to the core value of QHSE as People-oriented and Quality First, constantly improved QHSE management system and effectively implemented corporate responsibility, realized double-victory of epidemic prevention and control as well as safe production, was free from safety accidents, quality accidents and environmental protection accidents, and free from death which is not related to production and public safety incidents. The Group has been maintaining a "zero infection" record in the territory of China, and has kept the overall risk of public safety and epidemic for overseas projects under control. As at the end of the Reporting Period, a total of 141 million hours of safe work have been realized accumulatively; the staff vaccination rate is 88.2%, overfulfilling the vaccination rate target.
Steady construction development of major projects. In the first half of 2021, the Group has strengthened overall planning of resources, efficiently promoted the construction of largescale refining and chemical integration and crude oil storage facility project cluster, realized high-quality intermediate handover of Zhenhai Refining and Chemical Ethylene Expansion Project and commercial crude oil storage project of multiple places, nearly completed Fujian Gulei Refining and Chemical Integration Project, and made smooth progress of Ethylene and Oil Refining Reconstruction and Expansion Project of Hainan Refining & Chemical, laying a foundation for the Company to realize good benefits. As at the end of the Reporting Period, the Group's backlog was RMB115.466 billion, representing an increase of 9.3% compared to that as at 31 December 2020, and was 2.2 times of the total revenue of RMB52.353 billion in 2020.
Intensified efforts in technological innovation. In the first half of the year, the Company continued to increase its efforts on technological innovation. Focusing on technological difficulties and forward-looking technologies, the Group has dedicated on the research of oil conversion, oil specialty conversion, high-end materials, hydrogen energy industry chain, energy conservation and environmental protection, and the new energy, new economy and new fields strategic industries. Of which, two sets of high-end carbon plants have produced qualified products, which set good examples for the future transformation and upgrading of coking plants. Maoming POE, Guizhou PGA, high-pressure polyolefin and other projects were progressing effectively. The detailed design of the green manufacturing of high-grade polybutene-1 resin process technology and equipment R&D and integrated application, and third-generation aromatics technology with industrial application have been completed. Other projects are progressing steadily as planned. In terms of "carbon peak and carbon neutrality" research, the Group and Chinese Academy of Sciences and several other units jointly established a carbon neutral and green technology research and development center, and strive to efficiently transform scientific research results into productivity.
Chairwoman of SEG, Ms. Sun Lili said: "This year is the first year of the "14th Five-Year Plan". We analyzed the current situation, planned our strategies, and carefully laying out the development of the "14th Five-Year Plan". We brave ahead to be "the country's craftsmen", established the development vision of "creating the world's leading technology-leading engineering company", and formulated the development strategy of " value-led, innovation-driven, green and clean, talent-based enterprise development, global development, fusion and co-existence". With "engineering innovation and value creation" as drivers, we are advancing towards the goal of high-quality development. In the first half of this year, amid the complex and ever-changing external environment, we tackled challenges, strengthened overall planning, continued innovation, and deepened reforms, and achieved positive results on major areas. The achievement is the result of the joint efforts of the board of directors, management and all employees, and it is also inseparable from the strong support of shareholders and the society. This year is the 9th anniversary of the company's listing in Hong Kong. Thanks to everyone for the trust and support to the company. I hope that our supporters can continue to follow closely on the Company's development and grow with the company. I believe with the joint efforts of the board of directors, management and all employees, with the strong support of shareholders and the society, SEG will be able to write a new chapter of high-quality development and create greater value for shareholders and the society."
Business Review and Highlights
Forge ahead in market development
During the Reporting Period, the Group continued the intensive work in the domestic market. The Group entered into new contracts for a number of large projects, include 1 million t/a ethylene and oil refining reconstruction and expansion project of Hainan Refining & Chemical with a total contract value of approximately RMB9.506 billion, the EPC contract of Wenzhou LNG receiving station project with a total contract value of approximately RMB3.364 billion, engineering design contract of refined chemical project of North Huajin with a total contract value of approximately RMB626 million, construction contract of Ningbo PTA project of Formosa Chemicals Industries with a total contract value of approximately RMB778 million.
During the Reporting Period, the Group has made a major breakthrough in the Russian market. The Group entered into new contracts for ethylene plant construction project of Amurskaya Oblast AGCC project of Russia with a total contract value of approximately USD942 million; the Group won the bid for the MTO plant process package design contract for natural gas chemical complex of Uzbekistan, so that SMTO technology of SINOPEC went abroad for the first time; and signed melamine PDP - FEED design contract of Malaysia, and will strive to sign EPC contract in the next step.
Quick and steady implementation of major projects
-- Committed to becoming the world's top five refining and chemical production base: by strengtheningoverall planning, coordination and resource investment, the Group has promoted the construction of Zhenhai Refiningand Chemical Ethylene Expansion Project in a high quality and efficient manner and that the project has achievedhigh-standard intermediate handover ahead of schedule.
-- The largest petrochemical industry corporation project cross - Strait:Fujian Gulei Refining andPetrochemical Integration Project has entered the final sprint stage of construction, and has realized theintermediate handover of some devices such as ethylene.
-- Key projects of the national petrochemical industry plan: the Group has strengthened services to ensurethat Hainan Refining & Chemical Integration Project enters a rapid construction phase, with an overall progress ofabout 30%.
-- Sinopec - Saudi Basic Industry Corporation Strategic Cooperation Project: detailed design of SINOPECSABIC Polycarbonate Project is in the final stage of construction, and close to intermediate handover standard. TheGroup will ensure the smooth startup of operation of the project by the end of the year by providing better andbetter service.
-- Zhoushan green petrochemical base: Zhejiang Petrochemical Zhoushan Refining and Chemical IntegrationProject (Phase II) is in the final stage of construction, with an overall progress exceeding 90%.
-- Belt and Road strategic project: Amurskaya Oblast AGCC Polyolefin project of Russia is in the stage ofdesign and procurement, with an overall progress of about 40%.
Strong support for engineering service
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