Star Metro - Sinopec FY2025 Interim Results

BEIJING, CN / ACCESS Newswire / August 21, 2025 / China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX:386; SSE:600028) today announced its interim results for the six months ended 30 June 2025.

Financial Highlights

• The Company's oil and gas output in the first half reached approximately 263 million barrels of oil equivalent, up by 2.0% year-on-year. Natural gas production reached approximately 736.3 billion cubic feet, up by 5.1% year-on-year; refinery throughput was 120 million tonnes; total sales volume of refined oil products was approximately 112 million tonnes; ethylene production was 7.563 million tonnes, up by 16.4% year-on-year.

Business Review

In the first half of 2025, China's economy made steady improvement, with GDP increasing by 5.3% year on year. According to the Company's statistics, the domestic demand for natural gas saw modest growth, with consumption rising by 2.1% year on year. Mainly affected by alternative energy, the domestic consumption of refined oil products declined by 3.6% year on year, among which, gasoline decreased by 4.6% and diesel decreased by 4.3%, while kerosene increased by 4.2%. The domestic demand for major chemical products grew rapidly, with ethylene equivalent consumption up by 10.1% year on year. During the reporting period, international crude oil prices fluctuated with a downward trend. The average spot price of Platts Brent was USD71.7 per barrel, down by 14.7% year on year.

Exploration and Production

In the first half of 2025, the Company adhered to high-quality exploration and profit-oriented development, and achieved progress in increasing reserves and boosting production. Domestic oil and gas equivalent output reached a record high for the same period. In exploration, major breakthroughs were made in offshore oil and gas and ultra-deep shale gas in the Sichuan Basin. In crude oil development, we accelerated key production capacity construction in Jiyang, Tahe, and West Junggar, and strengthened the construction of the Shengli Jiyang Shale Oil National Demonstration Zone. In natural gas development, we advanced key projects in offshore fields, the Shunbei Area II, and the Xujiahe reservoir in the Sichuan Basin. We also strengthened integration of production, supply, storage, and sales of natural gas, and profit of natural gas industrial chain hit record-high for the same period. In the first half of 2025, oil and gas production of the Company reached 262.81 million barrels, up by 2.0% year on year, among which domestic crude totalled 126.73 million barrels and natural gas amounted to 736.28 billion cubic feet, up by 5.1%.

In the first half of 2025, operating revenue of exploration and production segment was RMB144.7 billion, representing a decrease of 5.9% year on year. This change was mainly due to the decreased prices of crude oil and natural gas products. In the first half of 2025, this segment made efforts to increase reserves, boost production and cut costs, accelerated the construction of key crude oil and natural gas production capacities, and strengthened the integration of the whole natural gas industrial chain, but impacted by decrease of crude oil prices, the segment realised an operating profit of RMB23.6 billion, representing a decrease of RMB5.5 billion or 18.9% year on year.

Exploration and Production: Summary of Operations

Refining

In the first half of 2025, facing severe challenges brought by fluctuation with a downward trend of international oil prices and declining demand for gasoline and diesel, the Company insisted on integrated production and marketing operations, comprehensively optimized utilization rates, and increased profitable processing volumes. By leveraging global resources allocation advantages, we optimized procurement pace and inventory management to reduce crude oil costs. We flexibly adjusted product mix and refined oil products yields and increased jet fuel production. We promoted low-cost "refined oil products to chemical feedstocks" and high-value "refined oil products to refining specialties" strategy, and boosted output of marketable products like high-end carbon materials and lubricating grease. In the first half of 2025, the Company processed 119.97 million tonnes

of crude oil, produced 71.40 million tonnes of refined products and 22.06 million tonnes of light chemical feedstock, rising by 11.5% year on year.

In the first half of 2025, operating revenues of refining segment were RMB658.3 billion, representing a decrease of 12.2% year on year. This change was mainly due to the decline in refinery throughput and the decreased prices of refined oil products and others year on year. In the first half of 2025, the segment adhered to synergy and optimization of production and marketing, coordinated the procurement pace of crude oil, increased the profitable processing volume and optimised the yield of refined oil products by closely following the market, produced more high value-added products such as high-end carbon materials and LPG, but impacted by the inventory loss caused by continuous decrease of crude oil prices, the segment realised an operating profit of RMB3.5 billion, decreased by RMB3.6 billion or 50.4% year on year.

Refining: Summary of Operations

Note: Includes 100% of the production of domestic joint ventures.

Marketing and Distribution

In the first half of 2025, facing fierce market competition, the Company fully leveraged its integrated advantages and network strengths to actively transform into a comprehensive energy service provider of petrol, gas, hydrogen, power and service. We vigorously expanded marketing and sales, with the proportion of high-grade gasoline rising continuously. We accelerated the development of gas refueling and EV charging and battery swapping networks, with significant year-on-year growth in automotive LNG operating volume and charging volume, and maintained top position in domestic LNG retail market share. We also promoted the large-scale utilization of hydrogen, with our first overseas hydrogen refueling station commencing operations. The Easy Joy service ecosystem was further enriched to enhance the operating quality of non-fuel business. In the first half of the year, total sales volume of refined products reached 112.14 million tonnes, of which domestic sales accounting for 87.05 million tonnes.

In the first half of 2025, the operating revenues of marketing and distribution segment were RMB752.6 billion, decreased by 12.8% year on year. This change was mainly due to decreased consumption of refined oil products and declined prices of refined oil products resulting from decreased crude oil prices. In the first half of 2025, the segment made great effort to expand market and increase sales volume, proactively developed Easy Joy service, EV charging and battery swapping, automotive natural gas and other businesses, but impacted by the inventory loss caused by the decreased crude oil prices and fast development of alternative energy, the segment realised an operating profit of RMB8.0 billion, representing a decrease of RMB6.7 billion or 45.7% year on year. In the first half of 2025, the profit of non-fuel business of this segment was RMB3.09 billion, representing an increase of RMB0.45 billion or 17.0% year on year, among which, the profit of selling convenience store products and providing related services was RMB2.93 billion, increased by RMB0.35 billion year on year. The service fee of EV charging business was RMB0.5 billion, which grew significantly year on year.

Marketing and Distribution: Summary of Operations

Note: The total sales volume of refined oil products includes the amount of refined oil marketing and trading sales volume.

Chemicals

In the first half of 2025, faced with the continued release of new domestic production capacities and weak chemical margins, the Company vigorously reduced costs and expenses and increased utilization rate with marginal profits. We continued to promote the lightening and diversification of feedstocks, optimized unit operations, and adjusted product mix. Efforts were increased in developing new and high value-added products. Ethylene production reached 7.563 million tonnes in the first half of the year, up by 16.4% year-on-year. We refined marketing strategies and customized product services, and actively expanded domestic and international markets. In the first half of the year, the total operating volume of chemical products reached 40.08 million tonnes with all products sold.

In the first half of 2025, the operating revenues of chemicals segment were RMB241.9 billion, down by 6.0% year on year. This change was mainly because the average prices of chemical products decreased by 9.6% year on year resulting from the declining international crude oil prices. In the first half of 2025, the segment closely followed the market changes, optimised the structure of products and operation of facilities, promoted the lightening and diversification of feedstocks, strengthened the integration of industrial chain and the coordination of production, sales, R&D and application efforts, implemented precision marketing, but impacted by the significant increase of capacities, decreased profits of aromatics and other products, and increased maintenance scale of facilities, the segment realised an operating loss of RMB4.2 billion, representing an increase in loss of RMB1.1 billion year on year.

Chemical Major Products: Summary of Operations

Note: Includes 100% of the production of domestic joint ventures.

Safety and Health

In the first half of 2025, the Company continuously improved the building and operating of HSE management system, enhancing all employees' HSE awareness and capabilities. We carried out the 2025 Action for Improvement in Work Safety, persistently advanced risk identification and control in key areas along with potential dangers investigation and rectification, and maintained overall safe and clean production. We strengthened occupational disease prevention at the source and focused on the occupational health, physical health, and mental well-being of domestic and overseas employees.

Science and Technology Innovation

In the first half of 2025, the Company stepped up efforts to secure breakthroughs in core technologies, established national-level innovation platforms in the energy sector, and achieved fruitful results in innovation-driven development. Breakthroughs were made in the heterogeneous composite displacement technology system which significantly improved the recovery rates, and the self-developed Geodrill intelligent drilling software system was successfully developed. We applied needle coke products in large-diameter graphite electrodes and started up our self-developed POE industrial demonstration unit and the 400,000 tonnes per year acrylonitrile unit. We completed the performance and stability tests for seawater hydrogen production pilot plant. The Great Wall AI Model was officially launched, and the iterative development was completed for OPEN, a process simulation software for the petrochemical industry.

Capital Expenditures

The Company continued optimizing management of projects. In the first half of 2025, total capital expenditure was RMB43.8 billion. Capital expenditure for the exploration and production segment was RMB27.6 billion, mainly for crude oil capacity building in Jiyang and Tahe, natural gas capacity building in Dingshan-Dongxi, and the construction of oil and gas storage and transportation facilities. Capital expenditure for the refining segment was RMB5.5 billion, mainly for the Maoming Refining upgrading and Guangzhou Petrochemical revamping projects. Capital expenditure for the marketing and distribution segment was RMB2.8 billion, mainly for the development of the petrol, gas, hydrogen, power and service integrated energy network, the revamping of the existing marketing network, non-fuel business and other projects. Capital expenditure for the chemical segment was RMB7.3 billion, mainly for ethylene projects in Maoming and Henan and the aromatics project in Jiujiang, etc. Capital expenditure for corporate and others was RMB0.5 billion, mainly for R&D and digitalization projects, etc.

Business Outlook

For the second half of 2025, China's economy continues to maintain a momentum of recovery and improvement. The domestic demand for natural gas and chemical products is expected to increase, and that for refined products will be impacted by alternative energy. Taking into account the changes in global supply and demand, geopolitics and inventory levels, more uncertainties exist in changes of international crude oil prices. The Company will prioritize profit generation, technological innovation, transition and upgrading, reform and management to comprehensively promote high-quality development. We will stress on the following aspects:

In E&P, the Company will focus on increasing reserve, boosting production and improving profitability, and forge ahead with high quality exploration and profitable development. We will enhance the overall research and joint exploration within the same basin, and strive to increase high-quality and scaled reserves. We will accelerate the oil and gas capacity building in Tahe, Jiyang and offshore fields, and proceed with the fine development in mature oil and gas fields. We will refine the production, supply, storage and marketing of natural gas, diversify and expand the resources, reduce resources costs, and enhance the profitability of the whole industrial chain. Our plan for the second half is to produce 141 million barrels of crude oil and 714.5 billion cubic feet of natural gas.

In refining, the Company will coordinate production and sales, and improve the operation efficiency for the industrial chain. We will coordinate the diversification of crude oil resources, dynamically optimize the procurement scale and pace, and reduce procurement costs. We will promote the optimisation of regional resources, adjust product mix and utilization rates with profit orientation, and ramp up jet fuel production. We will continue with the transition of low-cost "refined oil products to chemical feedstocks" and high-value "refined oil products to refining specialties" strategy, strengthen operational scale and profitability of refining intermediate products, by-products, and refining specialties, and build up an industrial chain for high-end carbon material. In the second half, we plan to process 130 million tonnes of crude oil.

In marketing and distribution, the Company will fully leverage the advantages of integration, keep optimizing resources by coordinating volume and price, continuously improve the network layout, and vigorously expand the market and increase sales. We will speed up the gas refueling and EV charging and battery swapping network layout, expand electricity business ecosystems, promote hydrogen mobility business, strengthen development of self-owned brands, build China's largest integrated driver service platform, and accelerate the transition to a comprehensive energy service provider of petrol, gas, hydrogen, power and service. In the second half, we plan to sell 89.80 million tonnes of refined oil products.

In chemicals, the Company will adhere to the 'basic + high-end' strategy, and raise our competitiveness in the chemical industrial chain. We will coordinate optimization of the feedstock and cut its costs through multiple means. Market oriented, we will improve the production scheduling, maintain high utilization rate of profitable units, and proceed with differentiated development. We will enhance the development of new materials and high value-added products, so as to tap the potential for profit creation. We will innovate our marketing strategies, and promote the strategic customer services and tailor-made product development. In the second half, we plan to produce 7.85 million tonnes of ethylene.

FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS

Principal accounting data

Principal financial indicators

The following table sets forth the operating revenues, operating expenses and operating profit by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage change between the first half of 2025 and the first half of 2024.

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the production, sale, storage and transportation of refinery products, petrochemical products, coal chemical products, synthetic fiber, and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information; hydrogen energy business and related services such as hydrogen production, storage, transportation and sales; battery charging and swapping, solar energy, wind energy and other new energy business and related services.

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

File: [Press Release] Sinopec FY2025 Interim Results

SOURCE: China Petroleum & Chemical Corporation

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V.Watson--SMC