On March 22, China Petroleum & Chemical Corporation (600028) disclosed its 2025 annual report, revealing a net profit attributable to shareholders of 318.09 billion yuan for the previous year, which represents a decline compared to the prior period. The company's total sales volume of refined oil products for the full year reached 229 million tons. The company stated it will intensify efforts in high-quality oil and gas exploration in 2026.
Investment Gains from CATL Increase The annual report shows that in 2025, China Petroleum & Chemical Corporation achieved operating revenue of 2.78 trillion yuan, a year-on-year decrease of 9.5%. Net profit attributable to shareholders was 318.09 billion yuan, down 36.8% year-on-year. Basic earnings per share were 0.262 yuan. The company plans to distribute a final cash dividend of 0.112 yuan per share (including tax). Combined with the interim dividend already paid in 2025, the total cash dividend for the full year 2025 amounts to 0.2 yuan per share (including tax).
In a statement, Chairman Hou Qijun of China Petroleum & Chemical Corporation said that factors such as the significant decline in international crude oil prices and low margins in the chemical market led to a substantial decrease in the company's profits compared to the previous year. However, cash flow from operating activities remained ample, and the company's financial position stayed robust. Statistics indicate that over the past five years, the company's market value increased by more than 240 billion yuan, with cumulative dividend distributions reaching 208.5 billion yuan.
As of the end of the reporting period, the company's total assets stood at 2.15 trillion yuan. Notably, inventories decreased by 25.8 billion yuan due to falling oil prices and a reduction in crude oil inventory levels. In contrast, non-current assets increased by 73.8 billion yuan, which included a 6.7 billion yuan increase from the strategic investment in CATL shares.
On May 20 last year, when CATL was listed on the Hong Kong Stock Exchange, Sinopec (Hong Kong) acted as the largest cornerstone investor, subscribing with an investment of approximately $500 million. Furthermore, in April, the two parties signed an industrial and capital cooperation framework agreement, planning to build no fewer than 500 battery swap stations within the year, with a long-term goal of expanding to 10,000 stations. According to disclosures from CATL, by the end of 2025, the two companies had cumulatively built 1,325 battery swap stations.
Building an Integrated "Oil, Gas, Hydrogen, Electricity, and Services" Energy Provider Over the past three years, China Petroleum & Chemical Corporation has seen annual increases in its oil and gas production. For the full year, oil and gas equivalent output reached 525 million barrels, a year-on-year increase of 1.9%. Natural gas production was 1.46 trillion cubic feet, up 4% year-on-year.
Facing challenges from intense competition in the gasoline and diesel markets and the rapid penetration of new energy vehicles, China Petroleum & Chemical Corporation has balanced market expansion and sales growth with transformational development, striving to become an integrated "oil, gas, hydrogen, electricity, and services" energy provider. During the reporting period, sales of high-grade gasoline continued to grow. The company accelerated the layout of its gas refueling and charging/swap station networks, promoted the development of hydrogen energy transportation, and maintained a leading national position in LNG refueling and hydrogen refueling operations. It also enhanced the operational quality of its Easy Joy services and advanced its international footprint, remaining the world's largest supplier of low-sulfur marine fuel.
The total annual sales volume of refined oil products was 229 million tons, a decrease of approximately 4.3% year-on-year.
In the chemical business segment, the company's annual chemical product sales volume was 87.12 million tons, an increase of 3.6% year-on-year. During this period, the company vigorously expanded into overseas markets, with export volume growing by 29.8% year-on-year.
Additionally, China Petroleum & Chemical Corporation strengthened its technological innovation efforts. Achievements included the industrial-scale production of 60K large-tow carbon fiber, and the independent development of a seawater electrolysis hydrogen production unit, which became the first demonstration unit in China to operate stably over a long period. A hundred-kilowatt iron-chromium flow battery system was also put into operation at a photovoltaic station, achieving "PV generation, storage, and charging" integration.
Increased Capital Expenditure for Exploration and Development Looking ahead to 2026, China Petroleum & Chemical Corporation anticipates that China's economy will maintain stable and positive growth. Domestic demand for natural gas and chemical products is expected to continue increasing, while demand for refined oil products will still be influenced by alternative energy sources. Considering factors such as global supply and demand changes, geopolitical issues, and inventory levels, the company expects greater uncertainty in international oil price trends.
Chairman Hou Qijun stated that in 2026, the company will intensify efforts in high-quality oil and gas exploration, adhering to strategies that advance both conventional and unconventional resources, onshore and offshore operations, and achieving high output with fewer wells. The focus will be on promoting low-cost development and building production capacity with scale and efficiency, driving increases in crude oil reserves and production, and accelerating the growth of natural gas output. The company will leverage its advantages in international trade and centralized procurement to actively secure diversified and cost-effective resources.
For 2026, China Petroleum & Chemical Corporation plans to process 250 million tons of crude oil and produce 148 million tons of refined oil products.
Regarding capital expenditure, the company has increased investment in exploration and development. Disclosures show that in 2025, capital expenditure was 147.2 billion yuan. For 2026, the planned capital expenditure is between 131.6 billion and 148.6 billion yuan. Within this, capital expenditure for the exploration and development segment is budgeted at 72.3 billion yuan, which is expected to show year-on-year growth. In comparison, capital expenditure for the marketing and distribution segment is set at 9 billion yuan, primarily for the development of the integrated energy station network. Capital expenditure for the chemical segment is planned at 28.2 billion yuan, representing a moderated level of spending compared to the previous year.
Comments