China Petroleum & Chemical (386) Q4 2025 earnings summary

Executive summary

• Revenue declined 9.5% year-over-year to RMB 2,783.6 billion in 2025, with net profit attributable to shareholders down 33.6% to RMB 32.5 billion, mainly due to lower crude oil prices and weak chemical margins.

• EBIT fell 27.3% and operating profit dropped 31.2% year-over-year, with all major segments impacted by market headwinds.

• EPS dropped 33.7% year-over-year to RMB 0.268.

• Cash flow from operations remained strong at RMB 162.5 billion, up 8.8% year-over-year, while investing and financing cash flows were negative.

• Final dividend proposed at RMB 0.112 per share, with a total annual dividend of RMB 0.2 per share and an 81% payout ratio, including share repurchases.

Financial highlights

• Total assets increased to RMB 2,153.5 billion as of Dec. 31, 2025.

• Liability-to-asset ratio rose to 54.2%.

• Cash and cash equivalents at year-end were RMB 150.9 billion.

• Cost reductions achieved across upstream, refining, and marketing segments.

• Net cash from operating activities: RMB 162.5 billion, up 8.8% year-over-year.

Outlook and guidance

• 2026 outlook expects continued economic recovery in China, with growth in natural gas and chemicals demand, but refined oil products to face pressure from alternative energy.

• Oil and gas production planned at 526.2 mmboe, ethylene production to rise 3.4% year-over-year.

• Plans to process 250 million tonnes of crude oil, produce 148 million tonnes of refined oil products, and 15.8 million tonnes of ethylene.

• Capex for 2026 planned at RMB 131.6–148.6 billion, with E&P at RMB 72.3 billion, refining at RMB 17.3 billion, and chemicals at RMB 28.2 billion, flexibly arranged based on market conditions.

• Focus on high-quality development, safety, energy security, profitability, and digital innovation.