On August 25, China Petroleum & Chemical Corporation, commonly known as Sinopec Corp. (HKEX: 386; SSE: 600028), announced its interim results for the first half of 2024 during a meeting in Beijing. The company’s operating revenue reached RMB 1.58 trillion, reflecting a solid financial performance.

Image source: Sinopec officials website

Financial Highlights

For the first six months ending June 30, 2024, Sinopec reported a profit attributable to shareholders of RMB 37.079 billion, marking a year-on-year increase of 2.6%. Basic earnings per share rose by 2.0% to RMB 0.307. When following Chinese Accounting Standards (CASs), the net profit was RMB 35.703 billion, up 1.7%, with basic earnings per share at RMB 0.296, a 1.0% increase.

The Board of Directors has proposed an interim cash dividend of RMB 0.146 per share, which includes tax, resulting in a payout ratio of 49.8% according to CASs. Additionally, the board approved a share repurchase plan aimed at enhancing the company's enterprise value.

Future Profit Distribution Plan

The Board has introduced an “Action of Corporate Value and Return Plan” that outlines a profit distribution strategy for the next three years (2024-2026), committing to a minimum cash dividend payout ratio of 65% of annual profit.

Operational Performance

Sinopec's oil and gas output in the first half of the year reached approximately 258 million barrels of oil equivalent, representing a 3.1% increase compared to the previous year. Natural gas production climbed to about 700.6 billion cubic feet, up 6.0%, while refinery throughput saw a slight rise to 127 million tonnes, up 0.1%. The total sales volume of refined oil products was approximately 119 million tonnes, marking a 2.1% year-on-year increase, and ethylene production stood at 6.496 million tonnes.

Commitment to Sustainability

Sinopec is committed to sustainability and has initiated the Second Phase Plan of its Green Enterprise Campaign. Key targets set for achievement by 2028 include reducing carbon dioxide and methane emission intensities by 5% and 20%, respectively, capturing and utilizing 2.5 million tonnes of carbon dioxide annually, and achieving a 100% compliance rate in carbon emission trading.

Management Vision

Chairman Mr. Ma Yongsheng emphasized the company's focus on innovation-driven growth, high-quality development, and the importance of overcoming challenges to maximize profitability. He outlined plans to enhance operational quality and develop new energy sectors, including hydrogen, wind, and solar power. The company aims to build a "high-end, intelligent, and green" refining system while promoting sustainable development and improving ESG performance.

Stakeholder Engagement

Sinopec aims to enhance its communication with stakeholders and improve corporate governance. By adopting an investor-centric approach, the company is committed to refining its information disclosure practices and strengthening stakeholder consultation mechanisms to increase its market recognition and enterprise value.

Highlights

• Sinopec's H1 2024 revenue reached RMB 1.58 trillion.
• Profit attributable to shareholders increased by 2.6% year-on-year.
• Proposed cash dividend of RMB 0.146 per share with a 49.8% payout ratio.
• Three-year profit distribution plan promises a minimum 65% dividend payout ratio.
• Oil and gas output grew by 3.1%, with a focus on sustainability and emission reduction.