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18 Pages

Sinopec Group corporate report

Sinopec Group corporate report

Report summary

Sinopec's greater exposure to downstream has seen it outperform during the oil price downturn. Sinopec Corp successfully de-leveraged its balance sheet through a focus on cost reduction and portfolio management. But cost cutting has impacted growth prospects. Domestic oil output decline has accelerated and we expect total Group production will peak in 2017. Sinopec faces a tough balancing act over the next couple of years if it is to address the underlying weaknesses in its upstream business. Efforts to keep costs down will have to be weighed up against a need to address increasing portfolio maturity.

What's included?

This report includes 2 file(s)

  • Sinopec Group corporate report PDF - 953.89 KB 18 Pages, 7 Tables, 20 Figures
  • Sinopec Group Corporate Report.xls XLS - 3.38 MB


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Executive summary
    • SWOT Analysis
    • Organisational Structure
    • Summary
  • Strategy
    • Further restructuring on the horizon
    • Longer-term outlook requires a new phase of business development
  • Valuation
  • Financial health
    • Financial health overview
      • Options to free up capital / risks to this outlook
  • Resources, reserves and production
    • Production overview
    • Resources and reserves overview
  • Portfolio summary
  • Economic assumptions
    • Economic assumptions

In this report there are 27 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Strategy
    • Upstream Portfolio Analysis by country/province
    • Country distribution of assets with NPV, 10 < US$200 million
    • Sinopec Group: production by resource theme
    • Benchmark: production CAGR
    • Benchmark: net acreage in key deepwater exploration provinces
    • Benchmark: Chinese NOC M&A deal value
  • Valuation
    • Relative share price performance since 2015
    • Evolution of market premium/discount
    • Domestic asset NPV,10
    • Top international assets, NPV,10
  • Financial health
    • Cash flow breakevens evolution
    • Benchmark: upstream cash flow breakevens
    • Net debt outlook
    • Upstream cash flow outlook
  • Resources, reserves and production
    • Production Outlook
    • Reserves and resource detail
    • Benchmarking: reserves and resources detail
    • Benchmarking: reserves and resource life
  • Portfolio summary
    • Portfolio summary: Table 1
  • Economic assumptions
    • Base price assumptions (nominal terms)
    • Economic assumptions: Image 1
    • Economic assumptions: Image 2
    • High price assumptions
    • Low price assumptions
    • Value assumptions
    • Foreign exchange rate assumptions
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