Financial Statements Comparison Analysis On Petro China And Sinopec

With the accelerating process of industrialization and the rapid growth of the population, the energy problem has always been a key focus around the world. As the lifeblood of the modern industry and economy, petroleum plays an important role in economic development. The performance of Petro China and Sinopec, two large state-owned listed companies, is not only related to the enterprise itself, but also to the economic development in China.In order to have a comprehensive understanding of Petro China and Sinopec’ financial status,this article tried to use these two companies’published financial statements during nearly four years (2009-2012) as a case study to compare their profitability, operation ability, growth ability and etc. Combining with the previous single analysis, this article also used the Dupont System to analyze the relationship between different ratios. After deep comparison and analysis, it comes to conclusions that:(1) compared with other domestic petroleum enterprises, financial data of Petro China and Sinopec is higher than the average level in petroleum and petrochemical industry. (2) Petro China’s profitability and development capacity is higher than the Sinopec. However, in terms of the efficiency of asset management and liquidity, Sinopec is slightly better. Finally, based on different financial characteristics of these two companies and future development trend of the world’s energy, the specific suggestions were given.