EQS Newswire: China Petroleum & Chemical Corporation: Sinopec Announced 2025 Annual Results Annual Payout Ratio Reached 81% The Board Considered and Approved the Proposal to Grant to a Mandate for New Round of Share Repurchase

EQS Newswire / 22/03/2026 / 19:29 UTC+8

Press release

(For immediate release)

Sinopec Announced 2025 Annual Results

Annual Payout Ratio Reached 81%

The Board Considered and Approved the Proposal to Grant to a Mandate for New Round of Share Repurchase

(22 March 2026, Beijing, China) 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.

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 ofoil 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, optimisie 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

Items	For twelve months ended 31 December		Changes over the same period of the preceding year (%)
	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

Items	For twelve months ended 31 December		Changes over the same period of the preceding year (%)
	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

Items	For twelve months ended 31 December		Changes over the same period of the preceding year (%)
	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

Items	For twelve months ended 31 December		Changes over the same period of the preceding year (%)
	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		Changes
	2025	2024
	(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.

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22/03/2026 Dissemination of a Financial Press Release, transmitted by EQS News.
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