Affected By the Drop in Oil Prices and New Energy Vehicles, Sinopec's Net Profit in 2024 Plummeted By 16.8%

Sinopec announced on March 23 that due to the drop in crude oil prices and the accelerated development of the new energy vehicle industry, its net profit in 2024 was 50.3 billion yuan (6.94 billion US dollars), a year-on-year decrease of 16.8%.

Sinopec stated in the document that in 2024, international crude oil prices fluctuated downward, the domestic transportation industry accelerated the replacement of new energy, and the gross profit margin narrowed significantly. "The company has made every effort to expand the market, expand sales, continue to strengthen cost and expense control, and take various measures to cope with market changes."
In contrast, net profit fell by 9.9% in 2023, also due to the drop in oil prices.

Specifically, gasoline sales fell by 0.7% in 2024, diesel sales fell by 4.8%, and aviation fuel sales increased by 7.3% (including domestic sales and export sales). Sales of chemical fibers and plastics in petrochemicals increased by 19.8%.

In 2024, the volume of processed crude oil fell 2.14% to 252 million tons, equivalent to 5.06 million barrels per day. The company expects production to increase to 255 million tons in 2025.

Sinopec expects crude oil production to be 280.15 million barrels and natural gas production to be 1.4503 trillion cubic feet in 2025.

The company said it had set aside 7.2 billion yuan (993.3 million U.S. dollars) in asset impairment provisions in 2024 due to "market price fluctuations of some products, shutdowns or losses of individual production facilities." Capital expenditures of 164.3 billion yuan are planned for 2025 for key investments such as exploration and development.