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(a joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock Code: 00386)
Estimated Increase in Profit for the First Quarter of 2021
| This announcement is made pursuant to the Inside Information Provision under Part XIVA of the Securities and Futures Ordinance and Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The Board and all directors of Sinopec Corp. warrant that there are no false representations, misleading statements or material omissions contained in this announcement and severally and jointly accept full responsibility for the authenticity, accuracy and completeness of the information contained herein. |
Important Notice:
· The net profit attributable to equity shareholders of the Company for the first quarter of 2021 is estimated to be between RMB16.0 billion and RMB18.0 billion.
· The net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses for the first quarter of 2021 is estimated to be between RMB15.9 billion and RMB17.9 billion.
1. The estimated results for the period
(1) The period of estimated results
From 1 January 2021 to 31 March 2021
(2) The estimated results
According to the preliminary calculation, under the PRC Accounting Standards for Business Enterprises, the net profit attributable to equity shareholders of China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") for the first quarter of 2021 is estimated to be between RMB16.0 billion and RMB18.0 billion, expected to achieve a turnaround from loss to profit as compared with the corresponding period in 2020 and representing an estimated increase between 8.1% and 21.6% as compared with the corresponding period of 2019. The net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses for the first quarter of 2021 is estimated to be between RMB15.9 billion and RMB17.9 billion, expected to achieve a turnaround from loss to profit as compared with the corresponding period in 2020 and representing an estimated increase between 10.4% and 24.3% as compared with the corresponding period of 2019.
(3) The above estimated results are not audited by the auditors.
2. Results for the corresponding periods
| Items
| Frist Quarter of 2020
| First Quarter of 2019
|
| Net profit attributable to equity shareholders of the Company (RMB100 million)
| -199 | 148 |
| Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses (RMB100 million)
| -204 | 144 |
| Basic earnings per share (RMB)
| -0.164 | 0.122 |
Note：The above data have been adjusted retrospectively.
3. Major reasons for the estimated increase in profit for the period
At the beginning of 2020, due to the dual impact of the COVID-19 epidemic and the plunge in oil prices, the global consumption of petroleum and petrochemical products shrunk sharply, greatly impacting the Company's production and operation and resulting in loss in operating results in the first quarter of 2020. In the first quarter of 2021, the Company's operating performance improved significantly, and is expected to achieve a turnaround as compared with the corresponding period in 2020 and to achieve an increase as compared with the corresponding period in 2019. The major reasons are as follows: Since the beginning of the current year, the effects of global epidemic prevention and control have gradually emerged. The epidemic has been effectively controlled domestically and economic operations have maintained restorative growth. The Company seized the favourable opportunity of rising international crude oil prices and of significantly improving market demand for petroleum and petrochemical products, and made every effort to optimize production and operation arrangements and vigorously promoted the overall efficiency of the industrial chain and value chain, resulting in a significant increase in the volume of refinery throughput, as well as sales of refined oil products and major chemical products, maintaining the gross profit at high level. Meanwhile, efforts have been continuously strengthened for costs and expenses reduction, effectively reducing the crude oil procurement costs and operating costs, and good performance has been achieved.
4. Risk alert
There are no major uncertainties which will affect the accuracy of this estimated result of the Company.
5. Other information
The above estimated data are only based on preliminary calculation. Final financial information in the quarterly report for the first quarter of 2021 to be formally published by the Company shall prevail. Investors of the Company are advised to exercise caution when dealing in securities of the Company
| By Order of the Board |
| China Petroleum & Chemical Corporation |
| Huang Wensheng |
| Vice President and Secretary to the Board of Directors |
Beijing, PRC
26 March 2021
As of the date of this announcement, directors of the Company are: Zhang Yuzhuo*, Ma Yongsheng#, Yu Baocai# , Liu Hongbin#, Ling Yiqun#, Zhang Shaofeng*, Tang Min+, Cai Hongbin+, Ng, Kar Ling Johnny+
# Executive Director
*Non-executive Director
+Independent Non-executive Director
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