Beijing, March 23 (Reuters) – China Petroleum and Chemical Corporation (Sinopec) reported a 16.8% drop in net profit in 2024 on Sunday, citing lower crude oil prices and the development of the new energy vehicle (NEV) industry.
According to the Shanghai Stock Exchange application, the world’s largest refinery has a net income of RMB 50.3 billion (US$6.94 billion) according to Chinese accounting standards.
Sinopec said in the document: “In 2024, international crude oil prices fell, and the domestic transportation industry accelerated the replacement of new energy…the gross profit margin was relatively large.”
“The company has done its best to expand its market and sales… (and) continues to strengthen cost and expense controls and takes a variety of measures to respond to market changes.”
The decline in net income fell by 9.9% compared to the decline in 2023, while oil prices fell.
State oil and gas specialty gas sales fell 0.7%, and diesel sales fell 4.8%. Aircraft fuel sales rose 7.3%. These data include domestic sales and exports.
Refinery throughput fell 2.14% last year to 252 million tons, equivalent to 5.06 million barrels per day. The company predicts it will increase to 255 million tons this year.
Sinopec expects its crude oil production to be 280.15 million barrels in 2025 and natural gas production to be 145.03 billion cubic feet.
The company said it set aside 7.2 billion yuan (US$993 million) reserves for asset damage in 2024 due to “market price fluctuations in certain products, closures or losses from individual production facilities.”
In Sinopec’s petrochemical business, sales of chemical fibers and plastics increased by 19.8%.
Sinopec said the capital expenditure plan this year is RMB 164.3 billion to cover important investments such as exploration and development.
(Reported by Colleen Howe and Laurie Chen in Beijing; Editor of Tom Hogue)
