【Security News】Sinopec Holds Video Conference to Outline the Group’s Plans for HSE and Production Operations in the Fourth Quarter
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Yesterday, according to the Sinopec News, on October 12, Sinopec Group held a video conference on HSE and production operations for the fourth quarter of 2016. Dai Houliang, General Manager of the group company, attended the meeting and delivered a speech, calling for firm confidence and a willingness to face challenges head-on; urging that obstacles be turned into opportunities and pressures into motivation, so as to do our best in the fourth quarter and achieve better business results, thereby contributing to the stable growth of the economy through Sinopec’s efforts to maintain growth. Liu Yun, the group company’s chief accountant, presided over the meeting, while Zhang Haichao, the group company’s vice general manager, spoke. Since the beginning of this year, in the face of a severe and complex market situation, all cadres and employees of the group company have earnestly implemented the decision-making and deployment of the Party leadership group. Focusing on improving quality, efficiency, and productivity, they have accelerated the transformation of business models and structural adjustments, made every effort to expand market share, optimize operations, reduce costs, and control risks, while coordinating the advancement of various tasks. In particular, in the face of challenges such as crude oil prices being significantly lower than budgeted levels, increasing losses in the upstream sector, growing disparities between diesel and natural gas production and consumption, as well as severe extreme weather conditions and floods, the employees and managers worked hard to come up with solutions and took proactive measures, achieving good operational results.
Dai Houliang said that the fourth quarter is a critical period of the year, and doing a good job in this quarter is essential for achieving the annual goals and targets. Faced with severe pressure on profitability, it is necessary to recognize both the challenges and the opportunities at hand, while maintaining firm confidence in achieving the annual goals and tasks. First, we must work together with one heart to fully achieve the set goals and targets for efficiency. It is necessary to strengthen the overall awareness, foster a collaborative approach to work, firmly uphold the concept of treating everything as part of a whole, ensure that local interests serve the greater good, and work together to achieve the annual performance goals. It is necessary to focus on assessment and evaluation to ensure that responsibilities are fulfilled. In line with the efficiency targets re-established by the headquarters, these targets should be carefully broken down and implemented; each company should develop measures to improve efficiency and productivity, and supervision and inspection efforts should be intensified to guarantee that these measures are put into practice. It is necessary to focus on both ends while supporting the middle part in order to promote overall improvement; companies with good performance spare no effort to increase their revenues and efficiency ； Loss-making companies need to take proactive actions to minimize losses and turn a profit. Second, it is necessary to strengthen coordination and carry out comprehensive operation optimization. The upstream sector must firmly embrace the mindset that \"we cannot control the market, but we can change ourselves.\" By focusing on the newly set loss-limit targets, it should take effective measures to strive to reduce losses. The refining sector should adhere to the principle of giving priority to efficiency and taking into account the characteristics of regional markets when allocating crude oil resources and processing capacity among different enterprises. It is necessary to focus on adjusting the product mix and make comprehensive efforts to improve the quality of refined products. The chemical industry sector should persist in conducting dynamic cost-benefit analyses, optimize production schedules in line with market conditions, and produce more products that are in demand. Third, it is necessary to expand market sales and promote promotions in order to increase profit margins. Oil product sales should adopt a strategy specific to each region, focusing on balancing volume and efficiency; it is necessary to develop differentiated performance evaluation mechanisms as well as pricing systems for refined oil products in order to stabilize and expand market share. Chemical sales should aim to maximize overall efficiency, promote close integration of production, sales, and research, and convey market information and pressures in a timely manner. Natural gas sales should take advantage of the peak consumption period in the fourth quarter to ensure supply and increase sales volume. Engineering technology service companies should leverage their integration advantages and make greater efforts to expand into external markets. Fourth, costs must be strictly controlled, with a strong focus on reducing expenses. It is necessary to firmly establish the mindset of living frugally, strictly control key areas and major costs, and ensure strict adherence to cost budget implementation. Fifth, strict oversight must be exercised to ensure safe and clean production. It is necessary to strictly enforce responsibility implementation, risk management, contractor management, and accident management, and to carry out thorough safety inspections. It is necessary to strictly implement the requirements of the **\"three major campaigns\" for pollution control**, accelerate special rectification efforts, and swiftly phase out high-energy-consuming and high-polluting production capacities and equipment. In line with the requirements of the environmental protection responsibility letter and the energy conservation assessment targets, efforts shall be made to achieve the annual goals for reducing the total amount of pollutants emitted as well as the objectives set for energy conservation. Implement a negative list system for contract energy projects to ensure strict standardization in project management. Sixth, careful planning is needed to conduct research and make arrangements for all tasks in 2017, particularly the formulation of the “three major plans”. To implement a zero-based budget, emphasis should be placed on improving quality and efficiency. In line with the plans to help struggling enterprises overcome their financial difficulties, proper arrangements should be made for their production and operation activities, with the aim of reducing or eliminating losses. It is important to ensure coordination with medium- and long-term plans, as well as with the 13th Five-Year Plan and the three-year rolling plans, using annual plans to facilitate the achievement of the goals set for the medium and long term. At the meeting, the heads of the Safety Supervision Bureau, the Ministry of Energy Management and Environmental Protection, and the Ministry of Production and Operation Management reported on the progress in work safety, energy conservation and environmental protection, as well as production and operations during the third quarter, and outlined the tasks for the fourth quarter. Inspections were conducted on the 3 companies that experienced safety accidents. Relevant leaders of the joint-stock company gave instructions on carrying out current safety and environmental protection work.
We must strive to meet the profit targets in order to avoid a wage cut by the end of this year.
Crude oil price fluctuations are too small, causing profits to shrink gradually.
Seize the favorable opportunities of the peak consumption period in the fourth quarter to ensure supply and increase sales. Engineering technology service companies should leverage their integration advantages and make greater efforts to expand into external markets.
Costs must be strictly controlled, with a strong focus on reducing expenses. It is necessary to firmly establish the mindset of living frugally, strictly control key areas and major costs, and ensure strict adherence to cost budget implementation.
This is indeed something worth taking as an example. Where did you get all these great things, my brother?