China Petroleum & Chemical (386) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 1,409.1 billion, down 10.6% year-over-year, with EBIT/operating profit falling over 32% and net profit attributable to shareholders down 35.9% to RMB 23.8 billion.

• Basic EPS decreased 40.2% year-over-year to RMB 0.177.

• Operating cash flow increased 44.4% year-over-year to RMB 61.0 billion, with cash and equivalents up 11.5% to RMB 162,331 million.

• Interim dividend of RMB 0.088 per share declared, with a payout ratio near 50%; share buy-back and repurchase of 36.18 million H shares completed.

• Profitability was impacted by lower crude oil prices, weak chemical margins, and declining domestic demand for gasoline and diesel.

Financial highlights

• Operating income: RMB 1,409.1 billion, down 10.6% year-over-year.

• Net profit attributable to shareholders: RMB 23.8 billion, down 35.9% year-over-year.

• Basic EPS: RMB 0.177, down 40.2% year-over-year.

• Net cash from operating activities: RMB 61.0 billion, up 44.4% year-over-year.

• Total assets: RMB 2,142.8 billion, up 2.9% from year-end 2024.

Outlook and guidance

• China's economy is expected to continue recovering, with rising demand for natural gas and chemicals, but refined oil demand will be pressured by alternative energy.

• 2H 2025 production plan: 260 mmboe oil and gas, 141 mmbbls crude oil, 715 bcf natural gas, 130 million tonnes refinery throughput, 89.8 million tonnes refined oil sales, and 7.85 million tonnes ethylene.

• Annual capital expenditure plan reduced by approximately 5% for 2025.