- China Petroleum & Chemical Uses AI And White Oils To Reframe Growth
May 10, 2026
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China Petroleum & Chemical (SEHK:386) has introduced its "Fenghuo" industrial AI agent, targeting smarter operations across refining and petrochemical facilities. The company has been highlighted as a leading participant in the expanding global white oil market. Sinopec is also involved in a major natural gas and condensate discovery in Indonesia, adding to its international resource footprint.
China Petroleum & Chemical, trading at around HK$4.61, is drawing attention as these developments add fresh context to a stock that has returned 22.6% over the past year and 77.9% over five years. For readers tracking SEHK:386, the combination of AI deployment, specialty product positioning and upstream exposure provides additional angles to think about beyond headline fuel markets.
As the "Fenghuo" AI platform is rolled out, investors can watch how the company uses it to manage costs, safety and asset reliability. At the same time, the company’s role in the Indonesian gas and condensate find and its position in white oils may influence how its mix of businesses is viewed if these areas gain more commercial weight over time.
Stay updated on the most important news stories for China Petroleum & Chemical by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on China Petroleum & Chemical.SEHK:386 Earnings & Revenue Growth as at May 2026
2 things going right for China Petroleum & Chemical that this headline doesn't cover.
The "Fenghuo" industrial AI agent sits at the center of this news, because it points to China Petroleum & Chemical trying to turn in house data and process know how into a repeatable product. By automating tasks like refinery optimization and oilfield analysis, the AI platform is aimed at more efficient use of large, complex assets, which is a key focus for any integrated oil and chemicals group. For investors, the interest is less about the technology branding and more about whether it can support refinery economics, petrochemical yields and project planning over time.
Recognition as a leading participant in the growing global white oil market adds another angle, as white oils feed into consumer facing areas such as personal care and pharmaceuticals. That positions the company alongside peers like ExxonMobil and Shell that also supply specialty products, rather than relying only on commodity fuels. The 18% stake in the Geliga gas and condensate discovery in Indonesia points to continued exposure to upstream volumes, which can matter for long term resource access. Together, the AI deployment, specialty-product positioning and Indonesian gas resource give readers three very different, but connected, ways to think about how the company competes with other large integrated groups such as BP and TotalEnergies.
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The Risks and Rewards Investors Should Consider
⚠️ The dividend yield of 4.99% is not well covered by free cash flows, so income focused holders may want to watch payout sustainability. ⚠️ Execution risk around deploying complex AI tools across refineries and petrochemical assets, as well as capital needs for Indonesian gas development, could weigh on returns if projects run over budget or behind schedule. 🎁 The company is identified as trading below one estimate of fair value, which some investors may view as providing a margin of safety if the business mix strengthens. 🎁 Analysts have flagged 2 key rewards, including expectations for earnings growth, which some readers might see as aligned with efforts to use AI, higher value white oils and upstream gas to support profitability.
What To Watch Going Forward
From here, it will be useful to track how widely the Fenghuo AI agent is adopted across refineries and petrochemical sites and whether management discloses any operational metrics tied to its use, such as throughput, energy use or unplanned downtime. On the specialty side, investors can watch for commentary on white oil capacity, pricing and contract wins, to see if this segment gains more weight relative to bulk fuels and basic chemicals. For the Indonesian Geliga discovery, the key milestones are the submission and approval of the development plan and any updates on capital spending, timelines and offtake arrangements. Together with future quarterly reports, these datapoints can help you judge whether the product launch and resource news are flowing through to the broader business.
To ensure you're always in the loop on how the latest news impacts the investment narrative for China Petroleum & Chemical, head to the community page for China Petroleum & Chemical to never miss an update on the top community narratives.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include 0386.HK.
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- Eni Confirms Size of 'Giant' Gas Discovery offshore Indonesia
May 7, 2026
This article was first published on Rigzone here
A drill stem test (DST) confirmed the preliminary assessment of about 5 trillion cubic feet (Tcf) of natural gas and 300 million barrels of condensate in the Geliga-1 discovery in the Kutei Basin offshore Indonesia, Eni SpA said Thursday.
The Italian state-controlled energy major announced the "giant" discovery in the Ganal block - which it operates with an 82 percent stake, the remaining 18 percent owned by China Petroleum & Chemical Corp - on April 20.
The DST results showed the well could sustain a production rate of around 200 million cubic feet a day of gas and approximately 10,000 barrels per day (bpd) of condensate, Eni said in a press release Thursday.
"Test results demonstrate high deliverability, further strengthening the strategic potential of Indonesia's Kutei Basin and supporting accelerated development options leveraging existing and planned infrastructure", Eni said.
"During DST, the tested reservoir flowed at rates of up to 60 million standard cubic feet per day (MMscfd), constrained by the rig facilities, and with very limited pressure drawdown, confirming excellent deliverability".
Drilled to a total depth of about 5,100 meters (16,732.28 feet), the well intersected a gas column with "excellent petrophysical properties" in the Miocene interval, according to Eni. The site off the coast of East Kalimantan province on Indonesia's side of Borneo island had a water depth of about 2,000 meters, according to the company.
"The new discovery is located next to the undeveloped Gula gas discovery, estimated at approximately 2 Tcf of gas in place and 75 million barrels of condensate. Early evaluations indicate that, when combined, Geliga and Gula could underpin incremental production of around 1,000 MMscfd of gas and 80,000 bpd of condensate", Eni said.
Ganal is among assets Eni agreed last year to contribute to its pending joint venture with Malaysia's state-owned Petroliam Nasional Bhd. The independent joint venture, called Searah, will focus on gas-producing and development assets in Indonesia and Malaysia. The combination would create a "major" LNG player in the Asian market, according to the partners. Eni continues to expect the transaction to be completed this quarter.
For the Geliga discovery, Eni expects to submit a plan of development (POD) to the government "in the coming weeks".
"The POD aims to enable the fast‑track development of a third production hub in the prolific Kutei Basin, alongside the Gendalo and Gandang gas project (South Hub) and the Geng North and Gehem fields (North Hub), by leveraging the development concept currently being implemented for the North Hub project", Eni added.
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"In parallel, studies are underway to assess liquefaction capacity at the Bontang plant beyond that already included in the North Hub POD, potentially enabling the reactivation of up to two additional LNG trains currently out of service".
Earlier this year Eni made final investment decisions to proceed with the North and South Hub projects.
Expected to go online 2028, the projects are designed to add up to 2 billion cubic feet per day of gas and 90,000 bpd of condensate to Eni's production capacity, it said in a press release March 18. Eni expects to reach peak production at the new hubs 2029.
"The Gendalo and Gandang development plan, in water depths ranging from 1,000-1,800 meters, includes the drilling of seven producing wells and the installation of deepwater subsea production systems tied back to Jangkrik FPU [floating production unit]", Eni said.
"For the North Hub, the project foresees the drilling of 16 producing wells at water depths between 1,700 and 2,000 meters, and the installation of subsea systems linked to a newly built FPSO [floating production, storage and offloading vessel] capable of processing over 1 Bscfd [billion standard cubic feet per day] of gas and 90,000 bpd of condensate, with a storage capacity of 1.4 million barrels.
"The combined volumes in place for the two projects amount to nearly 10 Tcf of gas initially in place, with 550 million barrels of associated condensate".
The gas will be channeled to an existing pipeline network and the Bontang liquefaction plant. The LNG produced will be delivered to both the domestic and overseas markets. The condensate will be processed and stored offshore in the FPSO for export via a shuttle tanker, Eni said.
"The development plan also includes extending the operating life of the Bontang LNG plant by reactivating one of its currently idle liquefaction trains (Train F)", it added.
Authorities in the Southeast Asian country approved Eni's development plans for the North and South Hub projects 2024. Eni at the time also secured a 20-year extension to the Indonesia Deepwater Development gas project, which consists of the Ganal and Rapak blocks, as announced by the company August 23, 2024.
To contact the author, email jov.onsat@rigzone.com
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- White Oil Market Global Forecast to 2030 with China Petroleum & Chemical, Sonneborn, Calumet, Savita Oil Technologies, and Gandhar Oil Refinery Leading
May 7, 2026
Company Logo
The global white oil market is projected to reach USD 2.77 billion by 2030, up from USD 2.19 billion in 2025, with a CAGR of 4.8%, driven by growth in pharmaceuticals, personal care, and food industries. Rising healthcare standards and demand for premium cosmetics fuel this expansion, alongside increased consumption of packaged foods. Technical-grade white oils dominate for industrial applications, while personal care – propelled by urbanization and rising disposable income – significantly influences demand. North America is a key market due to stringent regulatory needs. Key players include Sinopec and Sonneborn LLC, focusing on acquisitions to expand market share.
White Oil MarketWhite Oil Market·GlobeNewswire Inc.
Dublin, May 07, 2026 (GLOBE NEWSWIRE) -- The "White Oil Market by Grade, Application, and Region - Global Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
The white oil market is expected to reach USD 2.77 billion by 2030, from USD 2.19 billion in 2025, with a CAGR of 4.8%
The report aims to assist market leaders and new entrants by providing close estimates of revenue figures for the white oil market and its segments. It also helps stakeholders gain a deeper understanding of the competitive landscape, acquire valuable insights to strengthen their market positions, and develop effective go-to-market strategies. Additionally, it enables stakeholders to gauge the market's pulse and offers information on key drivers, restraints, challenges, and opportunities.
This growth is supported by the expansion of industries such as pharmaceuticals, personal care, plastics, and food processing. As healthcare manufacturing continues to rise and quality standards become more stringent, demand for refined, pharmacopeia-grade white oils is increasing. At the same time, rising consumption of packaged foods and premium cosmetic products is adding to the need for food- and cosmetic-grade mineral oils. Expanding production of polymers and flexible packaging, especially in emerging economies, is also increasing usage as white oil is widely used as a processing aid and plasticizer.
Key players in the white oil market include China Petroleum & Chemical Corporation (Sinopec) (China), Sonneborn LLC (US), Calumet, Inc. (US), Savita Oil Technologies Limited (India), Gandhar Oil Refinery (India) Limited (India), and others. These companies have adopted various strategies, such as acquisitions and agreements, to expand their market share and increase revenue.
By grade, technical-grade white oils rank second in the market.
Technical-grade white oil is refined to a functional purity level suitable for non-food, non-pharmaceutical industrial uses (typically compliant with FDA 21 CFR 178.3620(b) for indirect contact). The product preserves basic white oil properties through its clear appearance, excellent lubricating ability, and capacity to withstand chemical and thermal stress.
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However, it does not meet the highest purity standards required for food and medical applications. The global market predominantly features technical grade as the most common product because its cost-performance ratio offers favorable financial benefits. It is widely used in various sectors, including plastics, polymers, textiles, adhesives, metalworking fluids, and general manufacturing, where companies need regulatory-grade purity only for essential operations while prioritizing cost and efficiency.
By application, the personal care segment holds a significant market share.
The personal care industry is propelled by rapid urbanization, rising female workforce participation, and changing consumer habits in emerging economies. Increasing disposable income and purchasing power allow people to buy premium skin and hair care products. White oil is essential in cosmetic products because it effectively moisturizes skin and remains chemically stable while being safe for sensitive skin.
It acts as the main ingredient in various products like baby oils, facial lotions, and water-resistant creams because it helps retain moisture without causing skin irritation. Manufacturers now focus on pharmaceutical-grade white oils that meet strict international safety standards due to the rising demand for clean beauty products.
North America is the second-largest market for white oil.
The North American white oil market exhibits strong regional ties driven by the demand for high-purity and regulatory-compliant grades, which pharmaceutical companies and advanced polymer packaging require under USMCA trade standards. The market benefits from a solid industrial foundation that stretches from the US Gulf Coast to the Ontario-Quebec corridor in Canada.
The US focuses on medical-grade products and e-commerce services, fueling market demand, while Canada produces food-grade lubricants and Mexico develops its domestic drug and snack processing industries. The white oil market continues steady growth because this essential, non-toxic substance plays vital roles in healthcare, food, and consumer goods supply chains that distribute products across North America.
Key Attributes:
Report Attribute Details No. of Pages 219 Forecast Period 2025 - 2030 Estimated Market Value (USD) in 2025 $2.19 Billion Forecasted Market Value (USD) by 2030 $2.77 Billion Compound Annual Growth Rate 4.8% Regions Covered Global
Market Dynamics
Drivers
High Demand for White Oil in Various Applications
Restraints
Availability of Substitutes
Opportunities
Extensive Use of Specialty-Grade White Oils in Separator Manufacturing
Challenges
Volatility in Raw Material Prices Stringent Regulations and Quality Standards
Unmet Needs and White Spaces
Interconnected Markets and Cross-Sector Opportunities
Emerging Business Models and Ecosystem Shifts
Strategic Moves by Tier-1/2/3 Players
Companies Featured
China Petroleum & Chemical Corporation Sonneborn LLC Calumet, Inc. Savita Oil Technologies Limited Gandhar Oil Refinery (India) Limited Exxon Mobil Corporation Eneos Shell Petronas Lubricants International H&R Group Totalenergies Enilive S.P.A. Sasol Limited Apar Petroleum Specialities Fze Panama Petrochem Limited Atlantic Performance Oils Columbia Petro Chem Pvt. Ltd. Peak Lubricants Adinath Chemicals Addinol Axxonoil Srl Amaris Chemical Solutions Renkert Oil Petro-Canada Lubricants Inc. Seojin Chemical Co. Ltd. Oleotecnica S.P.A. Nandan Petrochem Ltd. Lodha Petro Royal Global Energy Masterol Foods Pty. Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/8hpzie
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
White Oil Market
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- Sinopec Launches "Fenghuo" Industrial AI Agent: An Industry First That Turns AI into Digital Employees And Domain Experts
May 6, 2026
BEIJING, May 6, 2026 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec", HKG: 0386) has unveiled the "Fenghuo" industrial AI agent, the first digital expert in the petrochemical sector capable of actively participating in production operations.Logo (PRNewsfoto/Sinopec)
The "Fenghuo" AI agent can analyze production data, interact with industrial software, and generate scientific research and engineering outcomes, essentially functioning as a "digital colleague" for petrochemical employees. The innovation marks the first time that AI achieving independent operational capability in the petrochemical sector, a key milestone in Sinopec's efforts to advance AI from a general-purpose tool to a core driver of industrial productivity—infusing new technological momentum into the high-quality development of the entire industry chain.
Built on Sinopec's "Great Wall" large model, the "Fenghuo" intelligent agent achieves three major breakthroughs:
Deep domain knowledge accumulation: integrating over one billion expert insights and experiences, the equivalent of carrying an entire petrochemical library with every task while being capable of continuous learning and autonomous iteration. Precise utilization of specialized toolchains and enterprise data: operates industrial simulation, process modeling, and other systems to complete engineering calculations. Stable execution of complex tasks over extended periods: to autonomously break down multi-step industrial processes and maintain reliable performance during continuous operations that last several hours.
The first deployment of "Fenghuo" AI agent spans four roles: Fenghuo Scientist, Fenghuo Engineer, Fenghuo Programmer, and Fenghuo Assistant. The Scientist and Engineer serve as core productivity roles, autonomously analyzing tasks and leveraging industrial software to conduct specialized work, such as dynamic oilfield development analysis and refining process optimization. Meanwhile, the Fenghuo Assistant helps employees with data organization, report writing, and other routine tasks, improving daily office efficiency.
In recent years, Sinopec has continuously advanced the vision of a "Digital and Intelligent Sinopec." Moving forward, the company will take the "Fenghuo" industrial AI agent as a springboard to further promote the integrated application and iterative evolution of artificial intelligence across the petrochemical industry chain, continuously injecting new digital intelligence into the high-quality development of China's energy and chemical sector.
For more information, please visit http://www.sinopec.com/listco/en/.
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- Annual Global Oil & Gas Industry Contracts Review Report 2025-2026: Saipem-COOEC, Petrofac, Sinopec, and Marie Led Charge Despite Contract Dips
May 6, 2026
Company Logo
Despite a 12% decline in oil and gas contracts, opportunities remain strong in high-value upstream, midstream, and downstream sectors. Key players like Saipem and Tecnimont are pivotal across Europe, Asia Pacific, and more, highlighting potential growth regions and sectors for strategic investments.
Dublin, May 06, 2026 (GLOBE NEWSWIRE) -- The "Annual Global Oil & Gas Industry Contracts Review 2025 - Saipem-COOEC, Petrofac, Sinopec, and Marie Led Charge Despite Contract Dips" report has been added to ResearchAndMarkets.com's offering.
Global oil and gas contracts activity reported a decrease of 12% in the number of contracts from 6,993 in 2024 to 6,188 in 2025. The total disclosed contract value also decreased, from $193.5 billion in 2024 to $139.8 billion in 2025.
The stability despite dips is supported by strong contributions from high-value contracts secured by reputed contractors such as Saipem, COOEC, and L&T in the upstream sector; Cimolai, Corinth Pipeworks, Mannesmann Grossrohr, Europipe, Mannesmann Line Pipe, and Erndtebrucker Eisenwerk's consortium, Wood Group, and QS Energy in the midstream sector, and Maire's Tecnimont, Nextchem and KT-Kinetics Technology and Sinopec Engineering in the downstream/petrochemical sector.
Report Scope
Analyze oil and gas contracts in the global arena Review of contracts in the upstream sector - exploration and production, midstream sector - pipeline, transportation, storage and processing, and in the downstream refining and marketing, and petrochemical sector. Information on the top awarded contracts by sector that took place in the oil and gas industry Geographies covered include - North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa Summary of top contractors in the oil and gas industry over the past 12 months subdivided by the sectors Summary of top issuers in the oil and gas industry over the past 12 months subdivided by the sectors
Reasons to Buy
Enhance your decision making capability in a more rapid and time sensitive manner, Find out the major contracts focused sectors for investments in your industry, Understand the contracts activity in the oil and gas industry Evaluate the type of services offered by key contractors, Identify growth sectors and regions wherein contracts opportunities are more lucrative, Look for key contractors/issuers if you are looking to award a contract or interested in contracts activity within the oil and gas industry
Key Topics Covered:
Oil and Gas Contracts
Annual Overview 2025 Key Highlights
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Global Oil & Gas Contracts and Contract Value ($B), 2021 -2025
Quarterly Contracts and Contract Value ($B), Q1 2025 -Q4 2025 Oil and Gas Contracts by Sector and Region Oil and Gas Contracts by Scope Oil and Gas Contracts by Terrain Annual Top Contractors & Issuers, 2025
Upstream Sector Review
Upstream Contracts Overview, by Scope Notable Upstream Awarded Contracts
Top Global Contractors and Issuers for Upstream by Region, 2025
Upstream Sector Key Awarded Contracts Midstream Sector Revie Midstream Contracts Overview, by Scope Notable Midstream Awarded Contracts
Top Global Contractors and Issuers for Midstream by Region, 2025
Midstream Sector Key Awarded Contracts Downstream/Petrochemical Sector Review Downstream/Petrochemical Contracts Overview, by Scope Notable Downstream/Petrochemical Awarded Contracts
Top Global Contractors and Issuers for Downstream/Petrochemical by Region, 2025
Downstream/Petrochemical Sector Key Awarded Contracts Appendix
For more information about this report visit https://www.researchandmarkets.com/r/eopr4q
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ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
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- A Look At China Petroleum & Chemical’s Valuation After Recent Share Price Weakness
Mar 27, 2026
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
China Petroleum & Chemical (SEHK:386) has drawn attention after recent share price weakness, with a decline of around 19% over the past month and a smaller drop over the past 3 months.
See our latest analysis for China Petroleum & Chemical.
Set against the recent 1 month share price decline of around 19% and 7 day share price pullback, the latest HK$4.48 level comes after a relatively mild 3 month share price move and a 1 year total shareholder return of about 15%. This suggests recent momentum has faded even though longer term holders have still seen positive returns.
If this shift in momentum has you thinking about where else to put fresh capital, it could be a good time to scan for other energy related names through the 26 power grid technology and infrastructure stocks
With the share price under pressure but the stock trading at around a 47% discount to one intrinsic value estimate and about 23% below analyst targets, is this weakness a potential opportunity, or is the market already factoring in future growth?
Price-to-Earnings of 14.7x: Is it justified?
On a P/E of 14.7x, China Petroleum & Chemical trades at a higher earnings multiple than both its peer group average of 11.7x and the wider Hong Kong oil and gas industry at 12x, even after the recent pullback to HK$4.48.
The P/E ratio tells you how much investors are paying for each dollar of current earnings, which is a common way to compare mature, cash generating energy companies. A higher P/E can indicate the market is willing to pay more for expected earnings growth, or that the current price embeds assumptions that may already be demanding.
Here, the picture is mixed. The company is flagged as good value when its 14.7x P/E is compared to an estimated fair P/E of 15.8x, which points to some room for the multiple to move closer to that level. At the same time, the stock appears expensive versus both its direct peers and the broader Hong Kong oil and gas industry, where average P/Es are lower and suggest the market is applying a premium to China Petroleum & Chemical’s earnings.
Explore the SWS fair ratio for China Petroleum & Chemical
Result: Price-to-Earnings of 14.7x (ABOUT RIGHT)
However, weak recent returns and the stock’s premium P/E to peers could both become pressure points if earnings or sentiment around the energy sector soften.
Find out about the key risks to this China Petroleum & Chemical narrative.
Another view using cash flows
While the 14.7x P/E points to a premium price tag, our DCF model paints a different picture. At HK$4.48, China Petroleum & Chemical is trading around 47% below an estimated fair value of HK$8.40. This frames recent weakness as a potential mismatch between price and future cash flows.
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Look into how the SWS DCF model arrives at its fair value.386 Discounted Cash Flow as at Mar 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out China Petroleum & Chemical for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 230 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
The mix of potential upside and clear risks around China Petroleum & Chemical will not suit every investor, so this is the moment to review the numbers yourself, weigh both sides and see whether the balance of 2 key rewards and 1 important warning sign
Looking for more investment ideas?
If this analysis has sharpened your focus on quality and risk, do not stop here. The next step is to widen your opportunity set with targeted stock ideas.
Spot potential mispricings early by scanning a curated set of 230 high quality undervalued stocks and see which companies currently trade below their estimated worth. Strengthen your income stream by sifting through 468 dividend fortresses that combine higher yields with a focus on resilience. Prioritise peace of mind by checking out 277 resilient stocks with low risk scores designed for investors who want growth potential without taking on excessive risk.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include 0386.HK.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Sinopec Reports 34% Profit Drop as Fuel Demand Weakens
Mar 23, 2026
This article first appeared on GuruFocus.
China Petroleum & Chemical (SNPMF) is coming under renewed pressure after reporting a deeper-than-expected earnings decline, as weakening fuel demand and mounting oversupply in petrochemicals continue to weigh on margins. The company, better known as Sinopec, posted full-year net income of 32.5 billion yuan for 2025, down 34% from 49 billion yuan in 2024, according to an exchange filing on Sunday. The result reflects a tougher operating backdrop as China's energy transition accelerates, with softer consumption trends and policy shifts reshaping the traditional refining model.
Warning! GuruFocus has detected 10 Warning Signs with SNPMF. Is SNPMF fairly valued? Test your thesis with our free DCF calculator.
The pressure is showing up directly in demand. Nationwide retail sales of petroleum and related products fell 5.7% last year, as authorities pushed refiners to cut fuel output and shift toward petrochemicals, while the country's electric-vehicle expansion continued to weigh on gasoline and diesel usage. At the same time, Sinopec is navigating a saturated chemicals market, where a wave of new domestic capacity is compressing margins. BloombergNEF estimates global net additions of ethylene and propylene capacity could reach 27.7 million metric tons annually in 2026, nearly double the average pace seen between 2020 and 2025.
External pressures are adding another layer of complexity. Disruptions tied to the Iran conflict, including the shutdown of the Strait of Hormuz, have introduced volatility into crude supply, making feedstock procurement more challenging and forcing Sinopec to trim run rates by 10% earlier this month. Looking ahead, the company expects demand for natural gas and chemicals could grow, but refined fuel consumption may continue to weaken as renewables scale and oil price uncertainty persists, leaving earnings momentum tied closely to how quickly these structural headwinds evolve.
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- Sinopec Announced 2025 Annual Results Annual Payout Ratio Reached 81%
Mar 23, 2026
The Board Considered and Approved the Proposal to Grant to a Mandate for New Round of Share Repurchase
BEIJING, CHINA / ACCESS Newswire / March 23, 2026 / China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX:386)(SSE:600028) today announced its annual results for the twelve months ended 31 December 2025.
Financial Highlights
In accordance with IFRS Accounting Standards, the Company's revenue reached RMB 2.78 trillion; Operating profit was RMB 48.608 billion; Profit attributable to shareholders of the Company was RMB 32.476 billion. Basic earnings per share were RMB 0.268. In accordance with CASs, net profit attributable to equity shareholders of the Company was RMB 31.809 billion. Basic earnings per share were RMB 0.262. Net cash generated from operating activities of the Company was RMB 162.5 billion, representing an increase of RMB13.1 billion year-on-year. The Company's financial position remained stable.
The Company's oil and gas equivalent output and the profitability of the natural gas industrial chain hit record highs. Production of oil and gas in 2025 was 525.28 million barrels of oil equivalent, up by 1.9% year-on-year, natural gas production reached 1,456.6 billion cubic feet, up by 4.0% year-on-year. Refining segment processed 250 million tonnes of crude oil and produced 149 million tonnes of refined oil products, with jet fuel production up by 7.3% year-on-year. Total sales volume of refined oil products for the year was 229 million tonnes. Total chemical sales volume reached 87.12 million tonnes, up by 3.6%.
Taking into account profitability, shareholders' return and sustainable development needs, the Board proposed a final cash dividend of RMB 0.112 per share (tax-inclusive). The total annual cash dividend amounted to RMB 0.2 per share (tax-inclusive). Aggregating the share repurchase amount during the year, annual payout ratio reached 79% in accordance with IFRS Accounting Standards, and reached 81% in accordance with CASs.
The Board considered and approved the proposal to grant to a mandate for new round of share repurchase.
Business Review
In 2025, China's economy maintained stable growth, registering a GDP growth of 5.0% year-on-year. International crude oil prices fluctuated with a downward trend. The domestic demand for natural gas and chemical products continued to increase, while the demand for refined oil products declined.
Exploration and Production Segment
In 2025, the Company strengthened high-quality exploration and profitable development, and achieved new progress in reserve and production growth with oil and gas equivalent output reaching a record high. In terms of exploration, we spared no effort to expand mining rights and increase reserves. Significant breakthroughs were made in the exploration of shale oil in the Bohai Bay Basin, new area in the Sichuan Basin and offshore natural gas etc. The construction of the Shengli Jiyang Shale Oil National Demonstration Zone was completed with high quality. In terms of oil development, we accelerated the construction of key projects such as Tahe, West Junggar, and offshore fields, implemented differentiated reservoir management, and shale oil production reached a million-tonne scale. In natural gas development, we pushed ahead the build-up of key projects such as marine facies gas in West Sichuan, offshore blocks, and Xujiahe Formation in the Sichuan Basin. At the same time, we further boosted the synergy of production, supply, storage and sales, with the profit for the natural gas business chain hitting a record high. The Company's production of oil and gas in 2025 was 525.28 million barrels of oil equivalent, up by 1.9% year-on-year, among which, the domestic crude oil production totaled 255.75 million barrels, and the natural gas production reached 1,456.6 billion cubic feet, up by 4.0% year-on-year.
Story Continues
In 2025, the segment made efforts to increase reserves, boost production and cut costs, strived to improve the profitability of the whole natural gas industrial chain, but impacted by decrease in crude oil prices, the segment realised an operating profit of RMB45.5 billion.
Summary of Operations for the Exploration and Production Segment
Twelve-month periods ended 31 December Changes 2025 2024 (%) Oil and gas production (mmboe) 525.28 515.35 1.9 Crude oil production (mmbbls) 282.40 281.85 0.2 China 255.75 254.00 0.7 Overseas 26.65 27.84 (4.3 ) Natural gas production (bcf) 1,456.63 1,400.39 4.0
Refining Segment
In 2025, the Company actively addressed the challenges brought by fluctuation with downward trend in crude oil prices and decline in demand for gasoline and diesel through optimisation and integration of production and marketing, maximized profitable processing volume and maintained a relatively high utilization rate. We optimised the pace for crude oil procurement to lower cost and freight. We optimised utilization rate and product mix and produced more market-favored products such as jet fuel, lubricant and grease close to market need. Efforts were made to carry forward low-cost "refined oil products to chemical feedstocks" and high-value "refined oil products to refining specialties" strategy in an orderly manner. We consolidated our leading position nationwide in high-end carbon materials. In 2025, the Company processed 250 million tonnes of crude and produced 44.22 million tonnes of light chemical feedstock, up by 8.4% year-on-year. Refined oil products output was 149 million tonnes, with jet fuel production up by 7.3% year-on-year.
In 2025, the segment coordinated the procurement pace of crude oil by closely following the international crude oil prices, continued to intensify efforts to improve synergy, flexibly adjusted utilization rate, and optimized products slate. The segment realised an operating profit of RMB9.4 billion.
Summary of Operations for the Refining Segment
For the twelve months
ended 31 December Changes 2025 2024 (%) Refinery throughput (million tonnes) 250.33 252.30 (0.8 ) Gasoline, diesel and kerosene production (million tonnes) 148.95 153.49 (3.0 ) Gasoline (million tonnes) 62.61 64.15 (2.4 ) Diesel (million tonnes) 52.64 57.91 (9.1 ) Jet fuel (million tonnes) 33.71 31.43 7.3 Light chemical feedstock production (million tonnes) 44.22 40.78 8.4
Note: Includes 100% of the production from domestic joint ventures.
Marketing and Distribution Segment
In 2025, amid the challenges by intense competition in gasoline and diesel markets and rapid penetration of new energy vehicles, the Company fully leveraged its integration and network advantages, coordinated the expansion of sales and transition development, strived to develop itself as an integrated energy service provider of petro, gas, hydrogen, power and service. We carried forward targeted marketing tactics, expanded strategic clients and boosted the sales volume of high-grade gasoline. We stepped up efforts in expanding network for gas refueling, EV charging and battery swapping, proactively promoted hydrogen mobility, and achieved significant volume growth in automotive LNG refueling, EV charging and hydrogen refueling, with maintaining top position in domestic LNG and hydrogen refueling businesses. The "vehicle ecosystem" network and "home lifestyle" model were further developed to improve Easy Joy service quality. We accelerated development of international layout, with the Company remaining the world's largest supplier of low-sulfur bunker fuel. Annual total sales volume of refined oil products reached 229 million tonnes.
In 2025, the segment adhered to integrated and synergistic profit creation, made great effort to expand market and increase sales volume, proactively developed EV charging and battery swapping, automotive natural gas and other businesses, strengthened cost and expense control, but impacted by fast development of alternative energy and the inventory loss caused by the decreased crude oil prices, the segment realised an operating profit of RMB10.0 billion.
Summary of Operations for the Marketing and Distribution Segment
For twelve months
ended 31 December Changes 2025 2024 (%) Total sales volume of oil products (million tonnes) 229.02 239.33 (4.3 ) Total domestic sales volume of oil products (million tonnes) 177.56 182.82 (2.9 ) Retail sales (million tonnes) 110.16 113.45 (2.9 ) Direct sales and distribution
(million tonnes) 67.40 69.38 (2.9 )
As of 31 December 2025 As of 31 December 2024 Changes
from the end of previous
year(%) Total number of service stations under the Sinopec brand 31,195 30,987 0.7 Number of company-operated stations 31,195 30,987 0.7
Note: The total sales volume of refined oil products includes the amount of refined oil marketing and trading sales volume.
Chemicals Segment
In 2025, facing the severe condition of the rapid expansion in domestic chemicals capacity and narrowing chemical margin, the Company closely followed market demand to optimize production and operation, leveraged refining-chemical integration, and gave full play to the potential of profitable facilities. We optimised facilities and product mix and achieved a record high in PX production. We reinforced cost control and adjusted chemical feedstock to reduce costs of raw materials and processing. With further coordination of production, sales, R&D and application, we sped up the development of new materials such as POE. Annual ethylene production was 15.28 million tonnes. We strived to expand emerging and niche markets, seek strategic partnerships and explore overseas market. Total chemical sales volume for the year reached 87.12 million tonnes, up by 3.6% year-on-year, with export volume up by 29.8% year-on-year.
In 2025, the segment spared no effort to reduce feedstock cost, closely followed the market changes, optimised the structure of products and operation of facilities, promoted the utilization rate of profitable facilities, implemented precision marketing, but impacted by the quick release of new capacities, decreased profits of chemical products and impairment loss of certain facilities, the segment realized an operating loss of RMB14.6 billion.
Summary of Operations for the Chemicals Segment
For twelve months
ended 31 December Changes 2025 2024 (%) Ethylene (thousand tonnes) 15,279 13,467 13.5 Synthetic resin (thousand tonnes) 22,037 20,087 9.7 Synthetic rubber (thousand tonnes) 1,578 1,429 10.4 Synthetic fiber monomer and polymer (thousand tonnes) 11,967 10,033 19.3 Synthetic fiber (thousand tonnes) 1,229 1,248 (1.5 )
Note: Includes 100% of the production of domestic joint ventures.
Innovation in R&D and Digital Intelligence
In 2025, the Company intensified efforts in innovation with breakthroughs achieved in R&D and digital intelligence. In terms of R&D, the differential cube development technology for shale oil in continental rift basins supported the cost-effective development of shale oil. Heterogeneous composite flooding technology was applied to various reservoirs with high salinity and high calcium-magnesium content. Breakthroughs were achieved in high-end polypropylene cable insulation materials. We also achieved industrial production of 60K large tow carbon fiber. Our independently developed seawater electrolysis hydrogen production unit became China's first demonstration facility with long-term stable operation, while 100 KW-scale iron-chromium flow battery system was successfully deployed for "solar-storage-charging" integration at photovoltaic power stations. In terms of digital intelligence, we made steady moves to implement "AI+". The Great Wall series of large AI models became operational while the intelligent operation centers were further promoted for application. We accelerated the construction of smart factories, with 3 subsidiaries recognized as National Excellence-level Smart Factories, and 1 subsidiary included in the first National Pilot-level Smart Factory Cultivation List. In 2025, the Company filed 9,953 patent applications at home and abroad with 5,768 granted. We won 1 Gold Award, 1 Silver Award, and 3 Excellence Awards in the China Patent Awards.
HSE
In 2025, the Company continued to improve its HSE management system, enhancing the HSE awareness of responsibility and capabilities of all employees. We carried forward the 2025 Action for Fundamental Improvement in Safety Production. Measures were taken to advance the control of major risks, conduct comprehensive inspections and rectifications of safety hazards, implement specialized campaign for the entire hazardous chemicals supply chain and achieve overall safe and stable production. We strengthened employee health management, further improved working conditions, actively promoted the "Healthy Enterprise" initiative, and safeguarded the occupational, physical, and mental health of employees both domestically and internationally. 43 cases were selected as outstanding examples in the national "Healthy Enterprise" program.
Capital Expenditures
In 2025, the Company continued to optimise investment in projects, with a capital expenditure of RMB147.2 billion for the whole year. The capital expenditure of the E&P segment was RMB70.9 billion, mainly for the crude capacity building in Jiyang and Tahe, natural gas capacity building in Dingshan-Dongxi as well as the oil and gas storage and transmission facilities. The capital expenditure of the refining segment was RMB22 billion, mainly for Guangzhou Petrochemical revamping and Maoming Refining upgrading projects, etc. The capital expenditure of the marketing and distribution segment was RMB13.8 billion, mainly for the development of the petro, gas, hydrogen, power and service integrated energy station network. The capital expenditure of the chemical segment was RMB35.9 billion, mainly for the ethylene projects in Maoming and aromatics project in Jiujiang, etc. The capital expenditure of corporate and others was RMB4.6 billion, mainly for R&D and digital intelligent projects, etc.
Business Outlook
Looking forward to 2026, as China's economy continues to recover and improve, domestic demand for natural gas and chemical products is expected to maintain growth, and that for refined oil products will remain influenced by alternative energy. Taking into account the impact of changes in global supply and demand, geopolitics and inventory levels, the uncertainty surrounding the trend of international crude oil prices has increased.
In 2026, the Company shall vigorously advance high-quality development in all fronts, focusing on safety and environmental protection, energy security, marketing, profitability enhancement and efficiency improvement, integration of R&D innovation with industry and finance, and reform-driven empowerment. We shall pursue the following key initiatives:
E&P: The Company will advance efforts to increase reserves, stabilize oil production, boost gas output and reduce costs, accelerate the profitable development of new energy business, and strengthen the integrated oil and gas exploration, production, supply, storage, sales and trading system. In exploration, we will actively expand high-quality mining rights, intensify high-quality exploration activities, strive to secure substantial, high-quality reserves, and lower finding costs. In development, efforts will be made to accelerate crude capacity expansion in Tahe, offshore areas, and western Junggar, alongside natural gas capacity growth for offshore, the marine facies in western Sichuan, and the Xujiahe reservoir in Sichuan. We will drive large-scale, profitable production in new areas while proceeding with the fine development in mature oil and gas fields. For natural gas sales, the Company will optimise resource portfolio and reduce costs, accelerate targeted development of high-end, high-value-added markets, so as to improve the scale and profitability of natural gas business. The annual plan is to produce 280.91 million barrels crude oil, including 25.31 million barrels from overseas operations, and 1,471.7 billion cubic feet natural gas.
Refining: The Company will focus on stabilising processing volumes and enhancing efficiency, strengthening synergies with marketing and chemical business, and improving intensive and efficient operations. We will insist the coordination across trading, storage, transmission and production, optimise resource procurement and reduce procurement costs. We shall thoroughly assess the marginal benefits of resources, maximise profitable processing volumes, and flexibly adjust product mix. We will persistently advance the strategy of reducing refined oil products output while increasing chemical feedstock and refining specialties output, enhance the market competitiveness of refining by-products such as liquefied petroleum gas, petroleum coke, and asphalt, and accelerate to develop growth drivers including refining specialties and high-end carbon materials. We will expedite the construction of key projects to concentrate our advantageous capacity. The annual plan is to process 250 million tonnes of crude oil and produce 148 million tonnes of refined oil products.
Marketing and Distribution: The Company shall remain market-oriented and customer-focus and fully leverage strengths of its integrated business to enhance overall competitiveness. We shall promote coordination between procurement and sales activities, volume and price and develop a differentiated and more precise marketing system. We will increase the portion of premium gasoline sales, expand the jet fuel market, and steadfastly consolidate sales volume of refined oil products. We will continuously optimise network layout, advance the integrated development of all business models, expand the scale of automotive LNG refueling, and grow the quality and profitability of EV charging and battery swapping and hydrogen energy services. The Company will accelerate the profitable development of the "vehicle ecosystem" and "home lifestyle" model, expand the comprehensive service scenarios of Easy Joy, and build proprietary brands. We will consolidate and enhance the integrated advantages in bunker fuel and actively expand the scale of domestic and international operations. The annual plan for domestic refined oil product sales volume is 170 million tonnes.
Chemicals: The Company shall adhere to the strategy of "basic + high-end, chemicals + materials", strive to reduce costs, expand markets and minimize losses and increase profits. We will promote projects in an orderly manner, scientifically arrange schedule of new capacity deployment and phase out of outdated capacity. We will leverage the advantages of the entire industrial chain and implement multiple measures to reduce raw material costs. Close to market changes, we will conduct dynamic valuation of the marginal benefits of different grades, facilities and product chains to precisely drive product structure optimisation and efficient resource allocation. We will intensify the development of new and high value-added products to improve profit. In chemical sales, we will establish an efficient product-service interaction system to meet differentiated and personalised customer needs, enhance product innovation, increase sales to strategic clients, and strengthen international market expansion. The annual ethylene production is planned at 15.8 million tonnes.
Innovation and Digital Intelligence: The Company shall pursue the deep integration of technological and industrial innovation, focusing on breakthroughs in key technologies to develop new quality productive forces. Collaborative research will advance projects including natural gas reserve expansion and production enhancement, profitable development of continental facies shale oil, and the CCUS/CCS industrial chain. Accelerated development and industrial demonstration of low-cost, cutting-edge refining technologies will be pursued, alongside intensified efforts to maximise the value of intermediate and by-products. We shall expedite the development and application of high-performance metallocene polyolefin technology and establish a comprehensive collaborative system spanning production, sales, research, and application. We will advance integrated research in strategic emerging fields including SAF and key materials and applications for solid-state batteries. We will coordinate digital and intelligent transformation, deepen the "AI+" initiative, enhance overall smart manufacturing maturity, cultivate flagship and exemplary smart factories with significant industry influence, create more high-value application scenarios, and empower digital and intelligent upgrading across all business segments.
Capex: In 2026, the Company plans to invest RMB131.6 to RMB148.6 billion. Capex for E&P will be RMB72.3 billion, primarily for the crude capacity building in Jiyang and Tahe, natural gas capacity building in West and South Sichuan, and oil and gas storage and transmission facilities. Capex for refining will be RMB17.3 billion, mainly for Guangzhou Petrochemical revamping and Maoming Refining upgrading projects, etc. Capex for marketing and distribution will be RMB9 billion, primarily for developing the integrated energy station network. Capex for chemical will be RMB28.2 billion, mainly for projects including Maoming and Qilu ethylene, and Jiujiang aromatics. Capex for corporate and others will be RMB4.8 billion, primarily for R&D and digital intelligence initiatives. The Company will also flexibly arrange Capex of RMB17 billion in light of market conditions.
Appendix: Key financial data and indicators
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH CASS
Principal accounting data
For twelve months
ended 31 December Changes
over the same period of the preceding year (%) Items 2025
(RMB million) 2024
(RMB million) Operating income 2,783,583 3,074,562 (9.5 ) Net profit attributable to equity shareholders of the Company 31,809 50,313 (36.8 ) Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses 29,529 48,057 (38.6 ) Net cash flows from operating activities 162,496 149,360 8.8
At 31 December 2025
(RMB million) At 31 December 2024
(RMB million) Change from the end of last year (%) Total equity attributable to equity shareholders of the Company 830,324 819,922 1.3 Total assets 2,155,617 2,084,771 3.4
Principal financial indicators
For twelve months
ended 31 December Changes
over the same period of the preceding year (%) Items 2025
(RMB) 2024
(RMB) Basic earnings per share 0.262 0.415 (36.9 ) Diluted earnings per share 0.262 0.415 (36.9 ) Basic earnings per share (excluding extraordinary gains and losses) 0.244 0.397 (38.5 ) Weighted average return on net assets (%) 3.86 6.19 (2.33) percentage points Weighted average return (excluding extraordinary gains and losses) on net assets (%) 3.58 5.91 (2.33) percentage points Net cash flow generated from operating activities per share 1.341 1.233 8.8
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS
Principal accounting data
For twelve months
ended 31 December Changes
over the same period of the preceding year (%) Items 2025
(RMB million) 2024
(RMB million) Operating Profit 48,608 70,686 (31.2 ) Profit attributable to shareholders of the Company 32,476 48,939 (33.6 ) Net cash generated from operating activities per share (RMB) 1.341 1.233 8.8
At 31 December 2025
(RMB million) At 31 December 2024
(RMB million) Change from the end of last year (%) Total equity attributable to shareholders of the Company 827,463 815,815 1.4
Principal financial indicators
For twelve months
ended 31 December Changes
over the same period of the preceding year (%) Items 2025
(RMB) 2024
(RMB) Basic earnings per share 0.268 0.404 (33.7 ) Diluted earnings per share 0.268 0.404 (33.7 ) Return on capital employed (%) 4.01 5.78 (1.77) percentage points
The following table sets forth the operating revenues, operating expenses and operating profit by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between 2025 and 2024.
For twelve months
ended 31 December 2025 2024 Changes (RMB million) (%) Exploration and Production Segment Operating revenues 285,992 297,249 (3.8 ) Operating expenses 240,461 240,864 (0.2 ) Operating profit 45,531 56,385 (19.2 ) Refining Segment Operating revenues 1,328,509 1,481,502 (10.3 ) Operating expenses 1,319,061 1,474,788 (10.6 ) Operating profit 9,448 6,714 40.7 Marketing and Distribution Segment Operating revenues 1,505,275 1,714,358 (12.2 ) Operating expenses 1,495,305 1,695,712 (11.8 ) Operating profit 9,970 18,646 (46.5 ) Chemicals Segment Operating revenues 464,108 523,862 (11.4 ) Operating expenses 478,686 533,859 (10.3 ) Operating loss (14,578 ) (9,997 ) - Corporate and Others Operating revenues 1,315,600 1,457,226 (9.7 ) Operating expenses 1,318,333 1,457,658 (9.6 ) Operating loss (2,733 ) (432 ) -
About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the production, sale, storage and transportation of refinery products, petrochemical products, coal chemical products, synthetic fibre, and other chemical products; the import and export, including import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information; hydrogen energy business and related services such as hydrogen production, storage, transportation and sales; battery charging and swapping, solar energy, wind energy and other new energy business and related services.
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor Inquiries：
Beijing
Tel: (86 10) 5996 0028
Fax: (86 10) 5996 0386
Email: ir@sinopec.com
Media Inquiries：
Hong Kong
Tel: (852) 2522 1838
Fax: (852) 2521 9955
Email: sinopec@prchina.com.hk
SOURCE: China Petroleum & Chemical Corporation
View the original press release on ACCESS Newswire
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- Sinopec Says Has Enough Oil Inventory to Ensure Stable Production for Now
Mar 23, 2026
At the briefing, Sinopec executives said the Middle East crisis has significantly disrupted the global economic and trade landscape.
Continue Reading
- Sinopec Profit Slumps in 2025 as Oil Prices and Chemicals Weigh
Mar 23, 2026
China Petroleum & Chemical Corp. posted a marked earnings decline in 2025 as softer crude prices, weaker fuel demand, and continued pressure in chemicals weighed on results, even as the state-controlled major lifted oil and gas output to a record and maintained an aggressive shareholder return policy. The company reported revenue of RMB2.78 trillion and net profit attributable to shareholders of RMB32.48 billion under IFRS, down 9.5% and 33.6% year over year, respectively, while cash flow from operations rose to RMB162.5 billion. It proposed a final cash dividend of RMB0.112 per share, bringing the full-year payout to RMB0.20 per share.
Chairman Hou Qijun said the earnings drop reflected sharply lower international crude prices and weak chemical margins, but he pointed to stable finances, stronger governance, and continued execution across the portfolio. The company said Brent averaged $69.1 per barrel in 2025, down 14.5% from a year earlier, while China’s demand for refined products fell 4.1%, underscoring the pressure facing integrated downstream players.
Operationally, Sinopec highlighted resilience in upstream. Oil and gas output reached 525.28 million barrels of oil equivalent, up 1.9% year over year, with natural gas production climbing 4.0% to 1,456.6 billion cubic feet. The company said domestic oil and gas equivalent production and profitability across its natural gas value chain both hit record highs, supported by breakthroughs in deep, unconventional, and offshore exploration.
Refining was one of the brighter spots. Sinopec processed 250.33 million tonnes of crude, broadly stable year over year, while light chemical feedstock production rose 8.4% and jet fuel output increased 7.3%. Segment operating profit in refining rose 40.7% to RMB9.45 billion as the company pushed its strategy of shifting more barrels toward chemicals feedstocks and specialty products.
The chemicals business remained the weak link. Segment revenue fell 11.4%, and the division posted an operating loss of RMB14.58 billion as new domestic capacity, lower benchmark oil prices, and softer margins continued to squeeze returns. Sinopec said it is responding by cutting feedstock costs, optimizing product slates, and accelerating higher-value materials, including polyolefin elastomers and carbon fiber.
Marketing and distribution also came under pressure from China’s energy transition. Total oil product sales volume fell 4.3% to 229.02 million tonnes, while segment operating profit dropped 46.5% to RMB9.97 billion. Even so, Sinopec said it retained leading positions in automotive LNG, hydrogen refueling, and low-sulfur bunker fuel, and expanded its alternative mobility footprint to more than 13,000 EV charging and battery swapping stations.
Story Continues
The report lands as China’s major refiners face a structurally tougher fuels market, with EV adoption eroding gasoline and diesel demand while petrochemical overcapacity pressures margins. Sinopec is positioning for that shift by investing in ethylene and aromatics projects in Maoming and Jiujiang, advancing its first 40-million-tonne refining base, and building out what management calls a new growth platform spanning hydrogen, power, new materials, biomass energy, and CCUS. Capital expenditure totaled RMB147.2 billion in 2025 and is planned at RMB131.6 billion to RMB148.6 billion in 2026.
Management framed 2026 as the opening year of its “15th Five-Year Plan” agenda, with priorities centered on energy security, refining and chemicals restructuring, sales network optimization, and development of “four new growth drivers” in new energy, new materials, new business models, and new tracks. The company also said it repurchased both A and H shares for a fourth straight year, signaling continued emphasis on shareholder returns despite weaker earnings.
By Charles Kennedy for Oilprice.com
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