【Oil Stock Earnings】Sinopec Earned 33.6% Less Last Year, Final Dividend Falls 20% to 0.112 Yuan, Oil Price Outlook Uncertainty Expected to Increase

Sinopec (00386)
Announces 2025 Performance. According to International Financial Reporting Standards, Sinopec’s net profit last year was 32.48 billion yuan (RMB), down 33.6% year-on-year. The proposed final dividend is 0.112 yuan per share, a 20% decrease year-on-year. The total annual dividend is 0.2 yuan, approximately 30% lower than the previous year.

Looking ahead to 2026, Sinopec states that China’s economy will remain stable and improve gradually. It is expected that domestic demand for natural gas and chemical products will continue to grow, while demand for refined oil remains affected by alternative energy sources. Considering global supply and demand changes, geopolitical factors, and inventory levels, international oil prices are expected to be more uncertain.

Last year, Sinopec’s operating revenue was 2.8 trillion yuan, a 9.5% decrease year-on-year, mainly due to falling prices of petroleum and petrochemical products and reduced sales of refined oil. The external sales revenue from refining and marketing divisions was 1.6 trillion yuan, down 11.7% year-on-year, mainly due to lower volume and prices of products like gasoline and diesel.

During the period, revenue from exports of crude oil, natural gas, and other upstream products was 157.9 billion yuan, down 10.2% year-on-year, mainly due to lower crude oil prices and export volumes. External sales revenue of chemical products was 378 billion yuan, down 9.6% year-on-year, mainly due to declining product prices.

Expected 2026 capital expenditure up to 148.6 billion yuan

In terms of capital expenditure, Sinopec continued to optimize investment project management last year, with total capital spending of 147.2 billion yuan. This year, the company plans to spend between 131.6 billion and 148.6 billion yuan.

Additionally, Sinopec states that Zhao Dong resigned as President and authorized representative due to work adjustments and was reassigned as a non-executive director, while remaining as Vice Chairman. Wan Tao was appointed as President and authorized representative. At the same time, Tian Hongbin was appointed as Senior Vice President and recommended for election as an executive director. Besides the recommendation for election as an executive director, all these matters took effect from March 20.