China Petroleum & Chemical (386) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was RMB 735.4 billion, down 6.9% year-over-year; net profit attributable to shareholders declined 25.4%–27.6% year-over-year.

• EBIT and operating profit fell 21.9%–23.5%; net profit and EPS decreased over 26% year-over-year.

• EPS was RMB 0.109–0.115, down 26.3%–28.8%.

• Net cash from operating activities improved to RMB 8.1 billion from a net outflow of RMB 13.8 billion in Q1 2024.

Financial highlights

• Total assets increased to RMB 2,119.7–2,123.0 billion as of March 31, 2025; equity attributable to shareholders rose to RMB 834.8 billion.

• Cash and cash equivalents rose 9.5% to RMB 159.4 billion.

• Net cash from operating activities was RMB 8.1 billion; net cash from financing activities was RMB 36.1 billion, down 21.4%.

• Financial expenses rose 69.3% year-over-year due to increased net exchange losses on foreign currency loans.

• Investment income dropped 69.9% due to lower profits from associates and joint ventures.

Outlook and guidance

• China’s GDP grew 5.4% year-over-year, supporting gradual recovery in domestic demand for petroleum and petrochemical products.

• International oil prices averaged USD 75.7/bbl, down 9.0% year-over-year, with continued volatility.

• Refined oil demand fell 4.0%, natural gas demand rose 0.8%, and chemical product demand increased 3.1%.