China Petroleum & Chemical (386) Q3 2024 earnings summary

Executive summary

• EBIT for the first three quarters reached CNY 102 billion, up 124% year-on-year, while in 2024 EBIT fell 14.1% to RMB 73.0 billion and net profit attributable to shareholders dropped 16.6% to RMB 45.1 billion.

• Net profit attributable to shareholders for the first nine months of 2024 was RMB 44.25 billion, down 16.5% year-over-year; Q3 net profit fell 52.1% year-over-year to RMB 8.54 billion.

• EPS decreased 17.3% year-over-year to RMB 0.373; basic EPS for the nine months was RMB 0.366.

• The company maintained stable oil and gas production growth and continued cost optimization amid challenging market conditions.

Financial highlights

• Net cash from operating activities rose 3.3% year-over-year to RMB 101.5 billion; cash and cash equivalents increased 3.4% to RMB 169.1 billion as of September 30, 2024.

• Total assets reached RMB 2,097.6 billion, with a liability-to-asset ratio of 53.54%.

• Net assets attributable to shareholders increased 3.6% to CNY 768.4 billion as of September 30.

• Cash used in investing activities was around RMB 99.8 billion; net cash from financing activities was negative RMB 7.62 billion.

Outlook and guidance

• The company expects continued volatility in international oil prices and ongoing challenges from weak diesel demand and the chemical market's cyclical trough.

• Plans to maintain 10%-12% annual growth in natural gas production over the next five years, with increased LNG imports and storage.

• Focus remains on optimizing production, cost control, and expanding integrated energy services, including EV charging and hydrogen.

• Forward-looking statements caution that actual results may differ due to market, regulatory, and operational risks.