Sinopec Achieved Good Performance in 2022 Q1 Net Profit Reached RMB 23.3 Billion, Up by 24.3% yoy

BEIJING, CHINA / ACCESSWIRE / April 27, 2022 / China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX:386)(SSE:600028)(NYSE:SNP) today announced its unaudited first quarterly results for the three months ended 31 March 2022.

Financial Highlights

• In accordance with the IFRS, the Company's operating income for the first quarter was RMB 771.386 billion, up by 33.8% year on year; the net profit attributable to shareholders of the Company was RMB 23.338 billion, up by 24.3% year on year; the basic earnings per share were RMB 0.193.
• In accordance with the CASs, the net profit attributable to equity shareholders of the Company for the first quarter was RMB 22.605 billion, up by 24.5% year on year; the basic earnings per share were RMB 0.187.
• In the first quarter, all key production and operation indicators achieved growth, including processing volume of crude oil of 64.19 million tons, refined oil output of 37.36 million tons, ethylene output of 3.606 million tons, with the total operating volume of chemical products reaching 20.64 million tons, up by 4.0% year-on-year.

Operating Review

In the first quarter of 2022, the world situation was complex and volatile. China's economyperformed within an appropriate range overall, with gross domestic product (GDP) up by 4.8% year on year. The international crude oil prices increased significantly and the spot price of Platt's Brent for the first quarter averaged USD 101.2 per barrel, up by 66.3% year on year. The domestic demand for natural gas, refined oil products and chemical products maintained growth.

The Company actively responded to market changes, optimized the whole business chain, strengthened the integration and coordination of production and sales, made great efforts to expand market and increase sales volume, and achieved good performance. In accordance with CASs, net profit attributable to equity shareholders of the Company was RMB 22.605 billion, up by 24.5% year on year. In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB 23.338 billion, up by 24.3% year on year.

Exploration and Production: The Company seized the opportunity of high crude oil prices, continuously promoted high-quality exploration and accelerated profit-oriented development, and made positive progress in maintaining oil production, increasing gas output and improving profitability. In exploration, we strengthened risk exploration in new areas, and made important breakthroughs of oil and gas exploration in Shunbei, Shengli, and Sichuan Basin. In development, we accelerated the oil production capacity construction in Shunbei and Tahe oilfields, and sped up the gas production capacity construction in Western Sichuan, Dongsheng, Weirong, and Fuling. The Company strengthened the optimization of the whole business chain of natural gas and continuously promoted the scale and efficiency of natural gas business. In the first quarter, the Company's oil and gas production reached 121.41 million barrels of oil equivalent, up by 3.7% year on year, with natural gas production reaching 313.94 billion cubic feet, up by 7.7% year on year. The exploration and production segment realised an earnings before interest and tax (EBIT) of RMB 11.463 billion, up by 273.1% year on year.

Conversion: For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil,

1 tonne = 7.26 barrels. For production of natural gas, 1 cubic meter = 35.31 cubic feet.

Refining: Closely following market changes, the Company vigorously optimized production operation to maximize the overall profits along the business chain. We optimized the procurement schedule and resources allocation of crude oil and lowered the procurement cost. We continuously optimized product slate, and made steady progress in shifting to chemicals feedstock and refining specialities, maintaining high utilization rate. We accelerated the construction of advanced production capacity and took steady steps to promote structural adjustment projects. The Company supplied hydrogen to Beijing Winter Olympics and Paralympics and continued to promote the construction of hydrogen supply projects. In the first quarter, the Company processed 64.19 million tonnes of crude oil, up by 2.7% year on year, yielding 37.36 million tonnes of refined oil products, with a year-on-year increase of 4.7%. The refining segment realised EBIT of RMB 22.919 billion, up by 15.2% year on year.

Note Including 100% production of domestic joint ventures.

Marketing and Distribution: The Company gave full play to the advantages of integration and marketing network, adjusted operation strategy in a timely manner, dynamically optimized resources allocation, strengthened integration of production and sales and made great efforts to expand sales volume and improve efficiency, maximizing the value realization of business chain as much as possible. We actively promoted the construction of comprehensive service stations including oil, gas, hydrogen, electricity and non-fuel businesses and advanced the construction of new energy service network. We constantly integrated the online and offline businesses and accelerated the development of new economy business models, to leverage the value of marketing network. In the first quarter, domestic sales volume of refined oil products was 41.06 million tonnes, up by 2.6% year on year. The marketing and distribution segment realised EBIT of RMB 8.993 billion, up by 5.2% year on year.

Note: The total sales volume of refined oil products includes the amount of trading volume

Chemicals: Confronted with the severe situation of fierce competition and squeezed margin , the Company continuously diversified raw materials and optimized the utilization rate and product slate in a timely manner. We integrated production with marketing, adjusted maintenance schedule, increased production of profitable products, including EVA, BR, BDO and etc. We constantly increased output of high value-added products and the production ratio of synthetic resin, synthetic fibre, and fine chemicals with added value were increased by 1.6, 6.5 and 1.6 percentage points respectively. Meanwhile, the Company actively promoted the construction of advanced capacity. In the first quarter, the ethylene production was 3.606 million tonnes, up by 6.7% year on year, and the total chemicals sales volume was 20.64 million tonnes, up by 4.0% year on year. The chemicals segment realised EBIT of RMB 1.890 billion, down by 79.5% year on year.

Note: Including 100% production of domestic joint ventures.

Capital expenditure: In the first quarter, focusing on investment quality and return, the Company continued to optimize investment management, with total capital expenditures of RMB 25.38 billion. The capital expenditures of the exploration and production segment was RMB 15.25 billion, mainly used for the crude production capacity construction in Shunbei and Tahe oilfields, and natural gas production capacity construction in Western Sichuan, Dongsheng and construction of storage and transmission facilities of Longkou LNG. The capital expenditures of the refining segment was RMB 6.03 billion, mainly used for the expansion of Zhenhai refinery and structural adjustment of Anqing and Yangzi refineries. The capital expenditures of the marketing and distribution segment was RMB 0.84 billion, mainly used for construction of comprehensive energy stations integrated with oil, gas, hydrogen, electricity and services and logistics facilities. The capital expenditures of the chemicals segment was RMB 2.30 billion, mainly used for Hainan and Tianjin Nangang ethylene projects, Jiujiang Aromatics project, Shanghai large-tow carbon fiber project, Yizheng PTA project, Guizhou PGA project. The capital expenditures of the corporate and others was RMB 0.96 billion, mainly used for R&D and information technology projects.

Appendix: Principal financial data and indicators
Principal financial data and indicators prepared in accordance with CASs

Note: The Company has completed the purchase of non-equity assets of Cangzhou branch of Sinopec Group Asset Management Co., Ltd and Beijing Orient Petrochemical Industry Co., Ltd on 1 July 2021, and Sinopec Beihai Refining and Chemical Limited Liability Company, a subsidiary of Sinopec Corp., has completed the purchase of non-equity assets of Beihai Petrochemical Limited Liability Company of Sinopec Group on 1 July 2021. The Company has completed the purchase of non-equity assets and liabilities of Sinopec Group Asset Management Co., Ltd. and Sinopec Beijing Yanshan Petrochemical Co., Ltd. on 1 December 2021. Sinopec Yizheng Chemical Fibre Company Limited, a subsidiary of Sinopec Corp., has completed the purchase of non-equity assets and liabilities of Sinopec Group Asset Management Co., Ltd. on 1 December 2021. The transactions described above have been accounted as business combination under common control, thus, the Company retroactively adjusted the relevant financial data.

Principal financial data and indicators prepared in accordance with IFRS

Note: The Company has completed the purchase of non-equity assets of Cangzhou branch of Sinopec Group Asset Management Co., Ltd and Beijing Orient Petrochemical Industry Co., Ltd on 1 July 2021, and Sinopec Beihai Refining and Chemical Limited Liability Company, a subsidiary of Sinopec Corp., has completed the purchase of non-equity assets of Beihai Petrochemical Limited Liability Company of Sinopec Group on 1 July 2021. The Company has completed the purchase of non-equity assets and liabilities of Sinopec Group Asset Management Co., Ltd. and Sinopec Beijing Yanshan Petrochemical Co., Ltd. on 1 December 2021. Sinopec Yizheng Chemical Fibre Company Limited, a subsidiary of Sinopec Corp., has completed the purchase of non-equity assets and liabilities of Sinopec Group Asset Management Co., Ltd. on 1 December 2021. The transactions described above have been accounted as business combination under common control, thus, the Company retroactively adjusted the relevant financial data.

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 an 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