Sinopec's profit increased by 2.6% in the first half of 2024

China Petroleum & Chemical Corporation announced its first-half results as of June 30, 2024.

According to the International Financial Reporting Standards, Sinopec's operating income in the first half of 2024 reached 1.58 trillion yuan. The profit attributable to shareholders of the listed company was 37.079 billion yuan, a year-on-year increase of 2.6%. According to the Chinese Accounting Standards for Business Enterprises, the company achieved a net profit attributable to shareholders of the listed company of 35.703 billion yuan, a year-on-year increase of 1.7%; basic earnings per share were RMB 0.296, a year-on-year increase of 1.0%.

In the first half of 2024, Sinopec's oil and gas production was about 258 million barrels of oil equivalent, a year-on-year increase of 3.1%. Natural gas production was about 700.6 billion cubic feet, a year-on-year increase of 6.0%; refining processing volume was 127 million tons, a year-on-year increase of 0.1%; total sales of refined oil products was about 119 million tons, a year-on-year increase of 2.1%; ethylene production was 6.496 million tons.

In the first half of 2024, the domestic chemical market was still at the bottom of the cycle. The company keeps up with market demand, strengthens refining and chemical synergy, regional cooperation and integration of production, sales and research, increases efforts to reduce costs and increase efficiency, taps potential and increases efficiency, and reduces costs while diversifying raw materials. The company also maintains a high operating rate for profitable units such as aromatics, arranges production cuts and shutdowns for units with negative marginal profits, and steadily increases the proportion of high value-added products. In the first half of the year, ethylene production was 6.496 million tons, and synthetic fiber monomer and polymer production increased by 17.8% year-on-year. The company strengthened cooperation with strategic customers, promoted customized product services, and expanded domestic and foreign markets, with exports increasing by 17.8%. In the first half of the year, the total sales volume of chemical products was 40.06 million tons, and all products were sold.

In the first half of 2024, operating income was 257.3 billion yuan, a year-on-year increase of 5.3%. This is mainly due to the year-on-year increase in sales and prices of chemical products. Sinopec keeps up with market demand, strengthens the all-round integration of production, sales and research, dynamically calculates product marginal profits, vigorously optimizes the structure of raw materials, equipment and products, strives to increase the production of high value-added products, strengthens cost control, and achieves an operating loss of 3.2 billion yuan, a year-on-year narrowing of 200 million yuan.

Sinopec has formulated the "Sinopec Green Enterprise Action Plan Phase II" around carbon emission reduction, pollution prevention and control, efficiency improvement and cost reduction, and green development, and has determined the main goals by 2028: carbon dioxide and methane emission intensity will be reduced by 5% and 20% respectively compared with 2023, carbon dioxide capture and utilization will reach 2.5 million tons/year, and the carbon emission trading compliance rate will reach 100%; the comprehensive utilization rate of industrial solid waste will reach more than 92%, and the hazardous waste disposal rate will reach 100%; the comprehensive energy consumption per 10,000 yuan of output will be reduced by 5% compared with 2023, and the wastewater reuse rate will reach more than 60%.

Ma Yongsheng, Chairman of Sinopec, said: "In the future, we will deepen the reform of high-quality development, attach great importance to innovation-driven development, accelerate transformation and upgrading, strengthen lean management, strive to overcome difficulties and create value."

"The company will strengthen its operating quality and further improve its profitability. Give full play to the advantages of integrated operations, optimize the industrial chain and regional layout, strengthen cost management, and maximize profitability. Increase efforts to promote business transformation and upgrading, and cultivate and develop new productivity."

"We will adhere to the innovation-driven strategy to promote business transformation and upgrading and the development of emerging businesses. In terms of upstream business, we will continue to expand our oil and gas business and accelerate the construction of a natural gas production, supply, storage and sales system. We will increase the development of new energy such as hydrogen energy, wind power, and solar energy, and accelerate the construction of a multi-energy complementary system of 'oil, gas + new energy'".

"In terms of refining business, we will accelerate the construction of a 'high-end, intelligent, and green' production base, coordinate the development of low-cost 'oil-to-chemical' projects and 'oil-to-differentiated special oil' projects, and actively plan the development of emerging businesses such as new materials and biotechnology. "

"In terms of marketing business, we will further optimize the network layout, promote the construction of electric vehicle charging and battery replacement services and gas station networks, expand the demonstration application scenarios of hydrogen energy vehicles, enhance the Yijie service ecosystem, and enhance the competitive advantage of the 'oil, gas, hydrogen and electricity services' comprehensive energy service network. "