China Petroleum & Chemical (386) Q1 2026 earnings summary

Executive summary

• Net profit attributable to shareholders rose 28.2% year-over-year to RMB 17.01 billion under PRC GAAP and 26.9% to RMB 17.74 billion under IFRS for Q1 2026.

• Revenue declined 3.9% year-over-year to RMB 706.7 billion, reflecting lower product prices and demand shifts.

• EBIT rose 19.9% to RMB 28.3 billion, and operating profit increased 32.6% year-over-year, driven by inventory gains and improved refining margins.

• EPS grew 29.4% year-over-year to RMB 0.141 under CASS and 27.8% to RMB 0.147 under IFRS.

• Net cash flow from operating activities was negative RMB 5.56 billion, mainly due to increased margin deposits, inventory costs, and hedging outflows.

Financial highlights

• Total assets increased 4.7% from year-end 2025 to RMB 2.26 trillion.

• Liability-to-asset ratio rose to 55.98% from 54.17% at year-end 2025.

• Weighted average ROE improved to 2.04% from 1.60% a year ago.

• Total equity attributable to shareholders reached RMB 833.1 billion.

• Non-recurring items had a net positive impact of RMB 81 million on net profit.

Outlook and guidance

• Management expects continued volatility in international crude prices due to geopolitical tensions and alternative energy competition.

• Strategic focus remains on optimizing production, expanding new energy initiatives, and enhancing profitability across segments.