China Petroleum & Chemical (386) Q4 2024 earnings summary

Executive summary

• Revenue declined 4.3% year-over-year to RMB 3,074.6 billion, with net profit attributable to shareholders down 16.1% to RMB 48.9 billion.

• Operating profit fell 18.6% to RMB 70.7 billion; EBIT down 14.4%; EPS decreased 17% to RMB 0.404.

• Final cash dividend proposed at RMB 0.14 per share, total annual dividend RMB 0.286 per share, payout ratio 75%.

• Major capital expenditure in 2024 was RMB 175.0 billion, with a 2025 plan of RMB 164.3 billion focused on upstream, chemicals, and new energy.

• Board and management emphasized high-quality development, innovation, and green transition amid challenging market conditions.

Financial highlights

• EBIT fell to RMB 80.3 billion; operating profit was RMB 70.7 billion, down 18.6% year-over-year.

• Net profit attributable to shareholders dropped to RMB 48.9 billion.

• Net cash from operating activities was RMB 149.4 billion.

• Cash and cash equivalents at year-end were RMB 145.6 billion.

• Total dividend and share repurchase payout reached RMB 36.9 billion.

Outlook and guidance

• 2025 capital expenditure planned at RMB 164.3 billion, focusing on upstream, chemicals, digitalization, and new energy.

• Oil and gas production is planned to increase by 1.3% in 2025, with ethylene production up 15.7%.

• Domestic demand for natural gas and chemicals expected to grow, while refined oil demand remains under pressure from alternative energy.

• Crude oil prices expected to remain volatile; company targets 280.15 million barrels of crude oil and 1,450.3 billion cubic feet of natural gas production in 2025.

• Emphasis on technological innovation, cost control, and green transition to drive future profitability.