Sinopec Delivered Promising 2024 Interim Results

      On August 25, China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028) announced its interim results for the six months ended 30 June 2024 in Beijing.

      In accordance with IFRS, the Company’s operating revenue for the first half of 2024 reached RMB 1.58 trillion. Profit attributable to shareholders of the Company was RMB 37.079 billion, up 2.6% year-on-year; basic earnings per share were RMB 0.307, up 2.0% year-on-year. In accordance with CASs, the Company’s net profit attributable to shareholders of the Company was RMB 35.703 billion, up 1.7% year-on-year; basic earnings per share were RMB 0.296, up 1.0% year-on-year. 

      The Board of Directors has resolved to distribute an interim cash dividend of RMB 0.146 per share (tax inclusive). In accordance with CASs, the interim dividend payout ratio amounted to 49.8%. Moreover, the Board of Directors has approved of the share repurchase plan with an aim to boost the enterprise value.

      The Board of Directors has approved of the “Action of Corporate Value and Return Plan”. In order to share its achievements with shareholders, the Board proposed the profit distribution plan for the next three years (2024-2026). Pursuant to it, the cash dividends payout ratio shall be not less than 65%.

The Company’s oil and gas output in the first half reached approximately 258 million barrels of oil equivalent, up 3.1% year-on-year. Natural gas production reached approximately 700.6 billion cubic feet, up 6.0% year-on-year; refinery throughput was 127 million tonnes, up 0.1% year-on-year; total sales volume of refined oil products was approximately 119 million tonnes, up 2.1% year-on-year; ethylene production was 6.496 million tonnes.

      Focusing on efforts to cut carbon emissions, reduce pollution, increase efficiency and promote green development, the Company formulated the Second Phase Plan of the Green Enterprise Campaign of Sinopec Corp. It set the following main targets through 2028: emission intensities of carbon dioxide and methane decrease by 5% and 20% respectively compared with 2023, capture and utilise 2.5 million tonnes of carbon dioxide per year, 100% compliance rate of carbon emission trading; over 92% comprehensive utilisation rate of industrial solid waste, 100% compliance disposal rate of hazardous waste; comprehensive energy consumption per RMB10,000 of production output decreases by 5% compared with 2023, over 60% reuse rate of wastewater.

      Mr. Ma Yongsheng, the Chairman of the Company, said: Going forward, we will thoroughly implement reforms to promote high-quality development, attach great importance to innovation-driven growth, accelerate business transformation and upgrading, strengthen lean management, and strive hard to overcome difficulties and create value. The Company will strengthen operational quality and further enhance profitability. By giving full play to our integrated operation, we will optimize the industrial chain and regional layout and reinforce cost management, thereby maximizing our profitability. Enhanced efforts will be made to promote the business transformation and upgrading, and new productive forces will be cultivated and developed. We will commit ourselves to the innovation-driven strategy so as to drive the business transformation and upgrading and the development of emerging businesses. As for the upstream business, we will insist on the expansion of oil and gas business, and the development of natural gas production, supply, storage and marketing system will be accelerated. The development of a multi-energy complementary system comprising “oil and gas + new energies” will be expedited by enhancing efforts to develop new energies such as hydrogen energy, wind power and solar power. As for the refining business, we will speed up the construction of "high-end, intelligent and green" production bases, coordinate the development of low-cost “oil to chemicals” projects and the projects for “oil to specialties with differentiated features”, and proactively formulate the plan for the development of emerging businesses such as new materials and bio-technology. As for the marketing business, we will further optimize the network layout, push for the development of EV battery charging and swapping service and natural gas compressor based gas filling station network along with the expansion of demonstrating application scenarios for hydrogen mobility. Moreover, the Easy Joy service ecosystem will be enhanced in order to sharpen the competitive edges of our integrated energy service network involving “petrol, gas, hydrogen, power and services”. Meanwhile, the Company will strive to improve ESG and promote sustainable development. Persistent efforts will be made to continually enhance our corporate governance system and establish a modern enterprise system. At the same time, the Company will proactively respond to the climate change, implement Carbon Peak Action Plan and the second phase of Green Enterprise Action Plan in a steady manner. Large-scale application of negative emission technologies such as CCUS will be promoted in conjunction with coordinated efforts to cut carbon emissions, reduce pollution, increase efficiency and promote green development, thereby contributing our efforts to promote the green transition of the society. We will also actively fulfill our social responsibilities and improve stakeholders’ satisfaction. By strengthening the ESG system, we will boost the ESG performance and promote our sustainable development. The Company will vigorously enhance the communication with stakeholders and increase the enterprise value. In adherence to the investor-centric approach, we will continuously improve the quality of our information disclosures and investor relations work. While making persistent efforts to refine the mechanism for stakeholder consultation and feedback, we will reply to investors’ enquiries on a timely basis, increase our recognition in the market and increase the enterprise value.