Sinopec

Financial performance

2023:13% decline in profits to 58.3 billion yuan

Sinopec's full-year profit was down 13%, after oil prices fell and Chinese refiners posted a record year of refining and imports.

China Petroleum & Chemical Corp., reported 58.3 billion yuan ($8 billion) in net profit for 2023, according to the exchange declaration. That's up from 66.2 billion yuan in 2022.

2022: Revenue growth of 21% to RMB3.32 trillion

In 2022, the Chinese oil and chemical corporation Sinopec (China Petroleum & Chemical Corp.) received revenue of 3.32 trillion yuan (about $482 billion at the exchange rate as of March 28, 2023). Year-on-year growth was 21.1%, as reported in the financial statements published on March 27, 2023.

It is noted that Sinopec's revenue is increasing, despite macroeconomic uncertainties and a protracted energy crisis. So, in 2021, the company received 2.74 trillion yuan (approximately $398 billion), and in 2020 - 2.1 trillion. The increase is primarily due to the increase in energy prices on a global scale.

Sinopec revenue increases despite macroeconomic uncertainties and protracted energy crisis

At the same time, Sinopec's net profit on an annualized basis decreased by 8.1% - from 71.98 billion yuan to 66.15 billion yuan (approximately $9.61 billion). The company says that due to the influence of various factors, the demand for natural gas, petrochemicals and petroleum products in the PRC market has decreased.

In 2022, the company faced difficult, volatile and difficult conditions, including a slowdown in global economic growth, geopolitical conflicts and weak demand in the domestic market. International oil prices fluctuated greatly - with a sharp increase in the first half of the year and a noticeable drop in the second half of the year. The company's results are closely related to the macroeconomic situation, the Sinopec report says.

The International Energy Agency (IEA) linked weaker gas consumption China in 2022 to slowing economic growth, lower demand driven by prices and large-scale restrictions under China's strict pandemic policy. COVID-19

Oil production by Sinopec in 2022 reached 280.86 million barrels, which is 0.4% more than the result for the previous year (279.76 million barrels). Gas production amounted to 35.34 billion cubic meters, showing an increase of 4.1% compared to 2021.^[1]

History

2022: QatarEnergy's 27-year LNG supply contract

QatarEnergy signed a 27-year contract to supply liquefied natural gas (LNG) to China's Sinopec on Nov. 21, 2022, the longest such agreement so far as volatile markets force buyers to seek long-term deals.

"Today is an important milestone for the first purchase-sale agreement (SPA) for the North Field East project, it is 4 million tonnes over 27 years for Chinese company Sinopec," QatarEnergy chief Saad al-Kaabi said in Doha shortly before the deal was signed.

"That means long-term deals are already here and important for both the seller and the buyer," he said.

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