Sinopec announces 2013 full year results

                   Sinopec announces 2013 full year results

Sinopec recorded steady growth in 2013 with dividend payout ratio as high as
42.1%

PR Newswire

BEIJING, March 23, 2014

BEIJING, March 23, 2014 /PRNewswire/ --China Petroleum & Chemical Corporation
("Sinopec" or "the Company") (HKEX:386;CH:600028;NYSE: SNP) today
announced its annual results for the year ended 31 December 2013.

(Logo: http://photos.prnasia.com/prnh/20140321/0861309266)

Financial Highlights:

  oIn accordance with the International Financial Reporting Standards (IFRS),
    in 2013, the Company's turnover, other operating revenues and other income
    was RMB2,880.3 billion, up 3.4% year-on-year, and operating profit was
    RMB96.8 billion, down 1.9% year-on-year. Profit attributable to equity
    shareholders of the Company was RMB66.1 billion, up 3.5% year-on-year.
    Basic earnings per share were RMB0.57.
  oIn accordance with the PRC Accounting Standards for Business Enterprises
    ("ASBE"), in 2013, the Company's operating profit was RMB96.5 billion, up
    9.7% year-on-year. Net profit attributable to equity shareholders of the
    Company was RMB67.2 billion, up 5.8% year-on-year. Basic earnings per
    share were RMB0.579.
  oThe Board of Directors proposed a final cash dividend of RMB0.15 per
    share. Combined with the interim dividend of RMB0.09 per share, the total
    annual cash dividend for 2013 is RMB0.24 per share. The Company has
    gradually increased its dividend payout ratio in recent years, with
    dividend payout ratio reaching 42.1% in 2013 (by IFRS). Total cash
    dividend paid for the full year was RMB28.0 billion. Based on the average
    stock price for 2013, dividend yield for H shares reached 4.82%.

Business Highlights:

In 2013, the world economy slowly recovered while economic growth for China
slowed down. International crude oil price saw wide fluctuation at high price
levels and market competition intensified with ample supply of petrochemical
products. Under these circumstances, the Company proactively responded to
market changes by strengthening its structural adjustment and deepened reform
to realize steady growth in operational performance and achieve good results
in various aspects.

  oThe Company saw stable growth in oil and gas production in the upstream
    business, and achieved an oil reserve replacement ratio of over 100%. The
    significant strategic breakthrough in shale gas exploration at Fuling
    signifies accelerated development of China's shale gas. Sinopec has
    achieved reserve growth by adding overseas upstream assets.
  oIn the refinery business, the Company seized the opportunity presented by
    improvements in the refined oil pricing mechanism and turned around the
    business in operating profit. Sinopec adjusted and optimized its product
    structure, becoming the leader in refined oil quality upgrading.
    Delivering more clean energy products to society has become a new growth
    area for the Company's business.
  oMarketing and distribution segment fully leveraged the advantages of the
    Company's extensive nationwide network, increasing retail volume and sales
    of high value added oil products. The non-fuel business continued its fast
    growth.
  oChemical segment proactively responded to severe market conditions by
    adjusting its raw material structure and lowering raw material cost. The
    segment optimized product structure and increased the share of high value
    added products.

Fu Chengyu, Chairman of Sinopec said: "In 2013, Sinopec achieved good
operational and results by leveraging our integrated model, adopting a
commercial and market-oriented business approach and focusing on the quality
and efficiency of our development. As a result, we made substantial progress
in reform and development. In particular, Sinopec made strategic breakthroughs
in shale gas exploration and development at Fuling, creating a new source of
growth for the upstream business. At the same time, we prioritised operational
safety and merged corporate social responsibility into all aspects of our
business operations through our 'Clean Water, Blue Sky' environment protection
campaign and our leadership and participation in the Global Compact where
Sinopec committed to the "Proposal to Address Climate Change" to promote green
and low carbon development in all areas."

Business Review

Exploration and production

In 2013, with increased exploration and development activities in five key
areas of China, we achieved stable growth in oil and gas production and
reserves. In exploration, we achieved significant strategic breakthroughs in
the Fuling marine-facies shale gas exploration project, laying a solid
foundation for shale gas development of the Company. In 2013, we added 3.13
million barrels to domestic proved oil reserves, achieving an oil reserve
replacement ratio of more than 100%. We also acquired overseas upstream assets
from China Petrochemical Corporation, significantly increasing our overseas
oil and gas assets. In oil production, we enhanced the recovery rate in mature
fields and effectively curbed the growth in lifting costs. We intensified
exploration in natural gas, increasing sales volumes to meet consumption
demand. In 2013, our oil and gas production was 442.84 million barrels of oil
equivalent, up 3.48% from the previous year, of which crude oil was 332.54
million barrels, representing a year-on-year increase of 1.30%, and natural
gas was 660.18 billion cubic feet, representing a year-on-year increase of
10.4%.

In 2013, the operating revenues of this segment were RMB 242.1 billion,
representing a decrease of 5.9% over the same period of 2012. Despite the
outstanding operational performance of the oil and gas exploration activities,
the operating profit of the exploration and production segment in 2013 was RMB
54.8 billion, representing a decrease of 21.8% as compared with 2012 which is
mainly attributable to a 6.6% decrease in crude oil price.

Summary of Operations for the Exploration and Production Segment

                                                    Change from
                               2013   2012   2011   2012 to 2013
                                                    (%)
Oil and gas production (mmboe) 442.84 427.95 407.91 3.48
Crude oil production (mmbbls   332.54 328.28 321.73 1.30
China                          310.84 306.60 303.37 1.38
Overseas                       21.70  21.68  18.36  0.09
Natural gas production (bcf)   660.18 598.01 517.07 10.40

Summary of Proved Reserves of Crude Oil and Natural Gas

                            Reserve of Crude Oil (mmbbls)
                            31 December 2013 31 December 2012
Proved Reserves             3,130            2,843
Proved Developed Reserves   2,821            2,577
Shengli                     1,944            1,974
Others                      557              539
China                       2,501            2,513
Overseas                    320              64
Proved Undeveloped Reserves 309              266
Shengli                     110              84
Others                      162              174
China                       272              258
Overseas                    37               8



                                  Reserves of Natural Gas (bcf)
                                  31 December 2013       31 December 2012
Proved Reserves                   6,520                  6,730
Proved Developed Reserves         5,805                  5,439
Puguang                           2,939                  3,605
OIthers                           2,842                  1,834
China                             5,781                  5,439
Overseas                          24                     -
Proved Undeveloped Reserves       715                    1,291
Puguang                           -                      -
Others                            712                    1,291
China                             712                    1,291
Overseas                          3                      -
Note: At the end of 2013, the Company completed the acquisition of part of the
equity interests of CIR, Taihu and Mansarovar from China Petrochemical
Corporation. Production, reserve and exploration activities of these three
companies are included on an equity accounting basis.

Refining

In 2013, seizing the opportunity presented by improvements in the oil product
pricing mechanism, we optimised our product mix according to market
conditions, increasing production of high-value-added products such as
high-octane gasoline and jet fuel which were in strong demand. We accelerated
the quality upgrading of our oil products to supply cleaner products to our
customers. In 2013, we were the first to complete gasoline upgrading to the GB
IV standard. We also optimised our crude oil allocation and reduced crude oil
procurement costs. In 2013, we processed 232 million tonnes of crude oil, up
by 4.81% from the previous year, and produced 140 million tonnes of oil
products, up by 5.59% from the previous year. Sales of lubricants, LPG and
asphalt grew at a fast rate.

In 2013, the operating revenues of this segment totaled RMB 1,311.3 billion,
representing an increase of 3.2% over the same period of 2012. This was mainly
attributable to increased sales volumes. In 2013, refining margin was RMB
261.1 per tonne, representing an increase of RMB 104.6 per tonne compared with
2012. This was mainly attributable to the improvement of the oil products
pricing mechanism and the implementation of the policy which allows higher
price for higher quality oil products. In 2013, the operating profit of the
segment totaled RMB 8.6 billion, representing an increase of RMB 20 billion as
compared with the same period of 2012. The refining segment contributed a
positive cash flow, hence the Company's net cash from operating activities
increased by 6.7% to RMB151.9 billion.

Summary of Operations for the Refining Segment

Unit: million tonnes
                                 2013   2012   2011   Change from 2012 to
                                                      2013 (%)
Refinery throughput              231.95 221.31 217.37 4.81
Gasoline, diesel and kerosene    140.40 132.96 128.00 5.59
production
Gasoline                         45.56  40.55  37.10  12.36
Diesel                           77.40  77.39  77.17  0.02
Kerosene                         17.43  15.01  13.73  16.15
Light chemical feedstock         37.97  36.33  37.38  4.52
Light products yield (%)         76.19  76.75  76.08  (0.56) percentage points
Refinery yield (%)               94.82  95.15  95.09  (0.33) percentage points
Note: Includes 100% of production of joint ventures.

Marketing and distribution

In 2013, in light of structural changes in the demand for oil products, we
adjusted our marketing strategies which focused on high-octane gasoline and
jet fuel sales and introduced premium products to the market ahead of other
suppliers. We increased total sales volume by using our network and brand
advantage to expand retail volumes. Through optimised oil products allocation
and logistics, we lowered our transportation costs. In 2013, the total sales
volume of oil products reached 180 million tonnes, of which domestic sales
were 165 million tonnes, up 4.04% from the previous year. Retail volume
increased by 5.45% compared with that in the previous year. Meanwhile, we
actively provided one-stop services and signature products to our customers
and revenue from the non-fuel business reached RMB 13.35 billion, representing
a year-on-year increase of 21.36%.

In 2013, the operating revenues of this segment were RMB 1,502.4 billion, an
increase of 2.1% over 2012. Of which: the sales revenues of gasoline totaled
RMB 505.8 billion, which increased by 9.7% compared with the same period of
2012; the sales revenues of diesel were RMB 708.3 billion, a decrease of 2.6%
over 2012, and the sales revenues of kerosene were RMB 123.7 billion, an
increase of 2.9% over 2012. In 2013, the operating profit of this segment was
RMB 35.1 billion, representing a decrease of 17.6% compared with 2012.

Summary of Operations, Marketing and Distribution Segment

                                                                 Change from
                             2013        2012        2011        2012 to 2013
                                                                 (%)
Total sales volume of oil    179.99      173.15      162.32      3.95
products (million tonnes)
Total domestic sales volume
of oil products (million     165.42      158.99      151.16      4.04
tonnes)
Retail sales (million        113.73      107.85      100.24      5.45
tonnes)
Direct sales (million        33.49       33.25       33.22       0.71
tonnes)
Wholesale (million tonnes)   18.20       17.89       17.70       1.73
Annual average throughput    3,707       3,498       3,330       5.97
per station (tonne/station)
                                                                 Change from

                                                                 the end of
                                                                 the

                             31 December 31 December 31 December previous year
                             2013        2012        2011
                                                                 to the end of

                                                                 the reporting

                                                                 period(%)
Total number of service      30,536      30,836      30,121      (0.97)
stations under Sinopec brand
Number of company-operated   30,523      30,823      30,106      (0.97)
stations

Chemicals

In 2013, facing severe market conditions, we adjusted our facilities
utilization rate and production plan, prioritised the restructuring of our
feedstock and product mix, implemented regional optimisation and effectively
reduced our raw material costs. We strengthened the integration of production,
marketing and research, and we reached record highs in production of new
polyolefin products, specialty and high-value-added rubber products, and
differential synthetic fibres. Through our market-oriented approach, we
optimised the marketing strategies, improved inventory management, implemented
differentiated marketing strategies and achieved superior results. In 2013,
ethylene production reached 9.98 million tonnes, up 5.58% from the previous
year, and chemical sales volume was 58.23 million tonnes, up by 7.14% from the
previous year, and effectively sold what we produced.

In 2013, the operating revenues of the chemicals segment were RMB 437.6
billion, representing an increase of 6.2% as compared with that of 2012. The
price of chemicals dropped by 1.1% and sales volume of chemical products grew
by 7.6% over 2012. In 2013, the operating profit of this segment was RMB 0.9
billion, representing a decrease of RMB 0.3 billion or 26.3% compared with
2012. This was mainly due to the drop in the prices of chemical products other
than basic chemical products and synthetic resin as compared to that of 2012.

Summary of Operations, Chemicals
Segment

Unit: thousand tonnes
                                                         Change from
                                    2013   2012   2011   2012 to 2013
                                                         (%)
Ethylene                            9,980  9,452  9,894  5.58
Synthetic resin                     13,726 13,343 13,652 2.87
Synthetic rubber                    960    936    990    2.59
Synthetic fibre monomer and polymer 9,227  8,950  9,380  3.10
Synthetic fibre                    1,392  1,339  1,388  3.99
Note: Includes 100% of ethylene production of joint ventures.

Research and development

In 2013, we actively implemented an innovation-driven development strategy,
consistently strengthened technology research and achieved outstanding
results. In E&P, we achieved breakthrough in shale gas technology in Fuling,
and primarily set up our key technology for efficient development of Dawan
high-sulfur-content gas field with horizontal wells. In refining, we continued
to reinforce development of production technologies for clean products, such
as the successful commissioning of our countercurrent moving bed continuous
reforming facility and the successful application of liquid phase recycling
diesel hydrogenation technology in several facilities. In chemicals, we put
into operation our self-designed and self-built 800,000-tonne-per-year
ethylene facility and our 600,000-tonne-per-year PX facility, drawing on
proprietary technologies. We successfully commercialised the looping process
for PP production and technology for rare-earth isoprene rubber. We actively
promoted transformational development as well. With the successful trial of
self-developed bio jet fuel in commercial flights, we received the first
license to produce bio jet fuel in China. In 2013, we applied for 4,442
patents at home and abroad, of which 2,388 were granted. We won two National
Awards for Technology Invention, two National Awards for Technology
Advancement and six Chinese Patent Awards of Excellence.

Health, safety and environment

In 2013, to implement our green and low-carbon strategy, we initiated our
'Clean Water and Blue Sky' scheme, participated in the pilot test of carbon
trading and promoted energy performance contracting. In 2013, our energy
intensity dropped by 2.01%, industrial water consumption declined by 1.19%,
COD in wastewater discharge fell by 3.85% and SO[2] emission fell by 4.71%. We
also fully ensured proper handling of hazardous chemicals and waste. We
properly managed the response to the Qingdao pipeline accident of 22 November
2013, implemented safety inspections throughout the Company to identify
potential risks and further improved our safety accountability system. Please
refer to our sustainable development report for more details.

Capital expenditures

In 2013, our capital expenditures were RMB 168.597 billion, a decrease of 7%
against the budget made at the beginning of the year. The exploration and
production segment accounted for expenditures of RMB 88.782 billion, mainly
for development of tight oil in North China, shallow heavy oil in the western
Shengli oil field, new blocks of the Tahe oil field, Yuanba in Southwest China
and the Daniudi gas field in North China, construction of Block 18 in Angola
and pipelines for LNG and natural gas. In 2013, we added 5.8 million tonnes of
crude oil production capacity and 2.44 billion cubic meters of natural gas
capacity. The refining segment had capital expenditures of RMB 26.064 billion,
mainly for completion of revamping projects in Wuhan, Anqing and Maoming for
quality upgrading of oil products. The marketing and distribution segment had
expenditures of RMB 29.486 billion, mainly for building and revamping service
stations and for construction of oil product pipelines and depots. We also
added 808 new service stations in 2013. The chemicals segment had expenditures
of RMB 19.189 billion, mainly for the Wuhan ethylene project, the Hainan
aromatics project and the Maoming polypropylene project. The corporate and
others had expenditures of RMB 5.076 billion, mainly for R&D facilities and IT
projects. In addition, Sinopec International Petroleum Exploration and
Production Corporation, a subsidiary of Sinopec Corp. acquired part of the
equity interests of Taihu project, Mansarovar project and CIR project from
China Petrochemical Corporation in this year, and thus resulted in a capital
expenditure of RMB 16.529 billion.

Business Prospects

In 2014, we anticipate that the recovery of the global economy will continue
and that China's economy will maintain its steady growth, with reforms
deepening. Domestic demand for oil products and chemicals will increase
steadily, with further changes to the structure of consumption. Quality
upgrades of oil products will continue, and domestic demand for chemical
products is expected to grow steadily. In 2014, crude oil supply is expected
to be in glut. Geopolitical tensions are likely to ease, and the tapering of
the U.S. quantitative easing program is likely to continue. We expect
international oil prices to show some weakness while fluctuating within a high
price range.

Exploration and production segment: We will promote efficient and effective
exploration and based on five campaigns, improve our exploration success rate
in a bid to achieve strategic breakthroughs. We will make further efforts to
promote efficient development, reinforce our focus on cost and profitability,
strengthen secondary and tertiary development of mature fields and enhance
utilisation of reserves. To achieve significant growth in shale gas, we will
comprehensively organise capacity building in the Fuling shale gas project and
improve our performance in shale development. We will maintain the sound
management of our natural gas business and carefully plan the strategic
deployment of our resources, markets and pipeline network. We will also
optimise resource allocation to develop a best performing value chain and
increase our market share. In 2014, we plan to produce 363.76 million barrels
of crude oil, and 706.2 billion cubic meters of natural gas.

Refining segment: We will continue to explore the market for new products and
optimise procurement and allocation of crude oil to reduce costs. We will
fully use our advantage in scaled production and expand our total processed
volume to control unit costs. We will also continue to upgrade oil product
quality and supply clean fuels to the market. We will also reinforce
coordination between production and marketing, adjust our product slate and
utilisation rate, and increase output of products with high value-added and
good market potential. In addition, we will improve our sales network,
optimise marketing of lubricants, LPG and asphalt by using our strengths in
specialisation, and maintain safe and reliable operations and high utilisation
rates of major refining facilities. In 2014, we plan to process 244 million
tonnes of crude oil and produce 150 million tonnes of oil products.

Marketing and distribution segment: To ensure maximum profits in this segment
and expand our retail business, we will improve our market analysis, operate
with low inventories to mitigate risks and optimise marketing structure,
expand sales volume, as well as enhance the quality of our service stations
and the sales volume per station. We will accelerate the planning and
construction of our oil product pipeline, take full advantage of our existing
network and make further improvements through professional management. We will
focus on differentiated marketing and increase customer loyalty by providing
tailor-made services. We will work to open up the market for vehicle-use
natural gas and promote professional and market-oriented development of our
non-fuel business to increase both scale and profits. In 2014, we plan to sell
169 million tonnes of oil products in domestic market.

Chemicals segment: We will further adjust our feedstock structure, optimise
regional production, increase the proportion of light feedstock to lower
costs, and advance the adjustment of feedstock for ethylene. We will
strengthen the integration of production, marketing and research, boost R&D,
increase production and promotion of new products, and expedite our coal to
chemical business, with coal-to-gas as the main focus. We will also improve
our marketing strategies and customer service, strengthen the management of
the supply chain and continue to operate with low levels of inventory. In
2014, we plan to produce 10.58 million tonnes of ethylene.

In 2014, we will continue to focus on the improvement of quality and
efficiency, primarily for organic growth, and accelerate our structural
adjustment by optimising company-wide and regional resources. Capital
expenditure for the year is budgeted at RMB 161.6 billion, of which the
exploration and production segment will account for RMB 87.9 billion, mainly
for the Fuling shale gas and South Yanchuan coal bed methane demonstration
projects, for development projects including Shengli, Northwest Tahe, Yuanba,
the Daniudi gas field, the West Sichuan, overseas blocks and for construction
of LNG and natural gas pipelines. Refining segment will account for
expenditures of RMB 25.5 billion, mainly for oil product quality upgrade
projects and revamping projects including those in Shijiazhuang, Yangzi and
Jiujiang. Marketing and distribution segment will account for expenditures of
RMB 24.1 billion, mainly for revamping of service stations, construction of
the oil product pipeline network, optimising the distribution of oil tanks and
improving facilities for natural gas and our non-fuel business. Capital
expenditures for Chemicals segment will be RMB 17.6 billion, mainly for
commissioning the East Ningxia integrated coal to chemical project and the
Fujian ethylene revamping project and for construction of the Jinling
propylene oxide and Qilu acrylonitrile projects. Corporate and others will
account for expenditures of RMB 6.5 billion, mainly for R&D and IT projects.

Fu Chengyu also said: "In 2014, China has embarked on a new journey to fully
deepen reform which will enable the market to play a decisive role in resource
allocation to further invigorate the Chinese economy. Sinopec's development
goal, business strategy and operating model are fully in line with the
objectives and roadmap set for this nation-wide reform. We have two important
tasks ahead of us. Firstly, we have already announced the business
restructuring of our marketing business, whereby capital from the private
sector will be introduced so as to build a more commercially savvy and dynamic
business positioned to capture future growth opportunities. Secondly, we will
enhance the exploration and development efforts for shale gas at Fuling to
lead the swift development of China's shale gas. The Board is fully confident
in Sinopec's future business success and believes it will continuously
maximise the value of the company through deeper reform and business
transformations."

Appendix
Principal financial data and indicators

FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE

                                 For the years ended 31 December
Items                            2013         2012         Change 2011
                                 RMB millions RMB millions (%)  RMB millions
Operating income                 2,880,311    2,786,045    3.4    2,505,683
Operating profit                 96,453       87,926       9.7    100,966
Profit before taxation           96,982       90,107       7.6    102,638
Net profit attributable
to equity shareholders           67,179       63,496       5.8    71,697
of the Company
Net profit attributable
to equity shareholders
of the Company
                                 66,658       61,922       7.6    70,453
excluding
extraordinary gain and
loss
Net cash flow from operating     151,893      143,462      5.9    151,181
activities



                            At 31 December
Items                       2013         2012         Change 2011
                            RMB millions RMB millions (%)    RMB millions
Total assets                1,382,916    1,238,522    11.7   1,122,703
Total liabilities           759,656      687,921      10.4   613,178
Total equity attributable
to equity shareholders      570,346      513,374      11.1   474,399
of the Company
Total shares (1,000 shares) 116,565,314  86,820,287   34.3   86,702,562



Principal financial indicators

                       For the years ended 31 December
Items                  2013       2012       Change                 2011
                       RMB        RMB        (%)                    RMB
Basic earnings         0.579      0.562      3.0                    0.636
per share
Diluted earnings       0.543      0.542      0.2                    0.612
per share
Basic earnings
per share based        0.578      -          -                      -
on latest total
shares (note)
Basic earnings
per share
(excluding             0.574      0.548      4.7                    0.625
extraordinary
gain and loss)
Weighted                                     (0.56)
average return         12.24      12.80                             15.93
on net assets                                percentage points
(%)
Weighted
average return
(excluding                                   (0.33)
extraordinary          12.15      12.48                             15.66
gain and loss)                               percentage points
on net assets
(%)
Net cash flow
from operating         1.308      1.272      2.8                    1.342
activities per
share
Note:
1. Calculated based on the total shares on 14 March 2014.
2. Earnings per share for 2011 and 2012 were pro forma data, adjusted in line
with the change in the number of total shares.

FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS PREPARED IN
ACCORDANCE WITH IFRS

Unit: RMB millions
Items                        For the years ended 31 December
                             2013      2012      2011      2010      2009
Turnover, other operating    2,880,311 2,786,045 2,505,683 1,913,182 1,345,052
revenues and other income
Operating profit             96,785    98,662    105,530   104,974   90,669
Profit before taxation       95,052    90,642    104,565   103,663   86,574
Profit attributable to
equity                       66,132    63,879    73,225    71,782    63,129
shareholders of the
Company
Basic earnings per share     0.570     0.566     0.650     0.637     0.560
(RMB)
Diluted earnings per share   0.534     0.545     0.625     0.631     0.556
(RMB)
Return on capital employed   8.02      9.09      11.49     12.95     11.67
(%)
Return on net assets (%)     11.63     12.50     15.50     17.11     16.63
Net cash generated from
operating activities per     1.308     1.262     1.336     1.512     1.468
share (RMB)



Unit: RMB millions
Items                         As at 31 December
                              2013      2012    2011    2010    2009
Non-current assets            1,009,906 892,929 794,423 727,642 692,930
Net current liabilities       198,812   148,358 101,485 76,177  114,442
Non-current liabilities       189,468   196,535 185,594 200,429 172,982
Minority interests            52,823    37,122  35,016  31,432  25,991
Total equity attributable to
equity shareholders of the    568,803   510,914 472,328 419,604 379,515
Company
Net assets per share (RMB)    4.880     4.527   4.191   3.723   3.367
Adjusted net assets per share 4.841     4.476   4.172   3.722   3.347
(RMB)

The following table sets forth the operating revenues, operating expenses and
operating profit/(loss) by each segment before elimination of the intersegment
transactions for the periods indicated, and the percentage change of 2013
compared to 2012.

Unit: RMB millions
                             Year ended 31 December Change
                             2013        2012       (%)
Exploration and Production
Segment
Operating revenues           242,107     257,185    (5.9)
Operating expenses           187,314     187,131    0.1
Operating profit             54,793      70,054     (21.8)
Refining Segment
Operating revenues           1,311,269   1,270,912  3.2
Operating expenses           1,302,670   1,282,356  1.6
Operating profit/(loss)      8,599       (11,444)   -
Marketing and Distribution
Segment
Operating revenues           1,502,414   1,471,882  2.1
Operating expenses           1,467,271   1,429,230  2.7
Operating profit             35,143      42,652     (17.6)
Chemicals Segment
Operating revenues           437,587     411,964    6.2
Operating expenses           436,719     410,786    6.3
Operating profit             868         1,178      (26.3)
Corporate and others
Operating revenues           1,359,109   1,312,970  3.5
Operating expenses           1,362,521   1,315,413  3.6
Operating loss               (3,412)     (2,443)    39.7
Elimination of inter-segment 794         (1,335)    -
profits/(losses)

About Sinopec:

Sinopec is one of the largest integrated energy and chemical companies with
upstream, midstream and downstream operations in China. Its principal
operations include: the exploration and production, pipeline transportation
and sales of petroleum and natural gas; the sales, storage and transportation
of petroleum products, petrochemical products, synthetic fiber, fertilizer and
other chemical products; import and export, as well as import and export
agency business of oil, natural gas, petroleum products, petrochemical and
chemical products, and other commodities and technologies; and research,
development and application of technologies and information.

Adhering to its corporate mission of enterprise development, contribution to
the country, shareholder value creation, social responsibility and employee
wellbeing, Sinopec implements strategies of resources, markets, integration,
internationalisation, differentiation and green low-carbon development with a
view to realize its vision of building a world first class energy and chemical
company.

Disclaimer:

This press release includes "forward-looking statements". All statements,
other than statements of historical facts that address activities, events or
developments that Sinopec Corp. expects or anticipates will or may occur in
the future (including but not limited to projections, targets, reserve volume,
other estimates and business plans) are forward-looking statements. Sinopec
Corp.'s actual results or developments may differ materially from those
indicated by these forward-looking statements as a result of various factors
and uncertainties, including but not limited to the price fluctuation,
possible changes in actual demand, foreign exchange rate, results of oil
exploration, estimates of oil and gas reserves, market shares, competition,
environmental risks, possible changes to laws, finance and regulations,
conditions of the global economy and financial markets, political risks,
possible delay of projects, government approval of projects, cost estimates
and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp.
makes the forward-looking statements referred to herein as of today and
undertakes no obligation to update these statements.

Investor Inquiries:   Media Inquiries:
Beijing
Tel: (86 10) 5996 0028 Tel: (86 10) 5996 0028
Fax: (86 10) 5996 0386   Fax: (86 10) 5996 0386
Email: ir@sinopec.com    Email: media@sinopec.com
Hong Kong
Tel: (852) 2824 2638     Tel: (852) 3512 5000
Fax: (852) 2824 3669     Fax: (852) 2259 9008
Email: ir@sinopechk.com  Email: sinopec@brunswickgroup.com

SOURCE China Petroleum & Chemical Corporation
 
Press spacebar to pause and continue. Press esc to stop.