Sinopec Reports Robust Performance in FY2023 Amidst Challenging Market Conditions

China Petroleum & Chemical Corporation (Sinopec Corp.), a leading energy and chemical company, disclosed its financial outcomes for the year ending December 31, 2023. Demonstrating resilience, Sinopec achieved significant growth with operating profit escalating by 14.5% year on year to RMB 86.828 billion, and net cash flow from operating activities rising by 38.9%. The company flagged a strong commitment to shareholder returns with a total dividend distribution ratio hitting 75% for the year.

Fueling its performance was Sinopec’s strategic focus on high-quality development encompassing optimization of production, operational excellence, and leveraging its integrated advantages. There was notable growth in the production of oil and gas, refinery throughput, and domestic sales of refined oil products, all achieving record highs. Sinopec also declared a commendable progress in its exploration and production segment with significant discoveries and reserve replacements, particularly in natural gas development which saw a 7.1% increase in production.

The company sustained its growth trajectory by capitalizing on opportunities arising from the recovery of China's economy, which reported a 5.2% GDP growth, and the rebound in domestic demand for refined oil products and natural gas. Notwithstanding an oversupplied chemical products market, Sinopec’s comprehensive development actions and optimization strategies across all segments have culminated in favorable operating results for FY2023.

In looking ahead, Sinopec's Chairman, Mr. Ma Yongsheng, outlined the company's strategic focus for 2024, emphasizing value creation, innovation, and comprehensive risk management to navigate the anticipated fluctuations in international oil prices and maintain the growth momentum in line with China’s economic recovery and expanding domestic demand.