BEIJING, Oct. 29 /PRNewswire-Asia-FirstCall/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or "the Company") today announced its unaudited results for the first nine months of the year which ended on 30 September 2009.

Financial Highlights: -- In accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), the Company's turnover in the first nine months of 2009 was RMB 893.448 billion, down 21.7% over the same period in 2008. Net profit attributed to equity shareholders of the company was RMB 49.714 billion, representing an increase of 230.3% over the previous year. Basic earnings per share was RMB 0.573, rising by 230.3% year-on-year. -- In accordance with the International Financial Reporting Standards (IFRS), the Company's turnover, other operating revenues and other income amounted to RMB 893.448 billion, representing a decrease of 21.7%. Net profit attributable to equity holders of the Company was RMB 49.797 billion, up by 230.5% compared to the same period last year. Basic earnings per share was RMB 0.574, up by 230.5% year-on-year. -- Capital expenditure for the first three quarters was RMB 60.28 billion. -- According to preliminary calculations, the Company expects profitability for the full year to increase by over 50% year-on-year. Business Highlights -- The Exploration and Production Segment recorded an operating profit of RMB 12.981 billion for the first nine months, down 75.2% compared to the same period last year. The Company's output of crude oil and natural gas increased by 1.28% and 0.20%, respectively, compared with the same period of last year. -- The Refining Segment recorded an operating profit of RMB 21.557 billion, up significantly from an operating loss last year. The processing volume of crude oil increased by 2.99% and the output of oil product rose by 3.36% compared with the same period of last year. Light products yield also increased year-over-year. -- The Marketing and Distribution Segment recorded an operating profit of RMB 22.377 billion, a decrease of 27.7% compared to the same period last year. Domestic sales of oil products for the nine month period was 89.57 million tones, a decrease of 5.53%. Nevertheless, third quarter domestic sales of oil products saw a sequential increase of 18.35%. -- The Chemicals Segment reported an operating profit of RMB 14.305 billion, a substantial increase from RMB 0.376 billion in the same period of last year.

Mr. Wang Xinhua, Chief Finance Officer of Sinopec commented: "In the first nine months of 2009, the Chinese economy maintained steady growth against a backdrop of global economic downturn, which drove up domestic demand for oil products and chemicals. The Company devoted major efforts to expanding the markets for all products and further integrating production, sales, and research to increase the production of oil products and gas. In addition, the processing volume of crude oil grew steadily."

"In the reporting period, the Sichuan-to-East China Gas Project was close to completion, Tianjin and Zhenhai ethylene projects made substantial progress, the addition of new gas stations was accelerated, and the development and application of new chemical products continued to yield results. With our partner in Germany, BASF, the expansion of our joint venture BASF-YPC Co Ltd. commenced in September with a total investment of RMB 10.4 billion."

Highlights of Results PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS PREPARED IN ACCORDANCE WITH THE PRC ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES ("ASBE") (Unit: RMB millions) At 30 September At 31 December Changes from the 2009 2008 end of the preceding year (%) Total assets (RMB millions) 843,734 763,297 10.5 Total equity attributable to shareholders of the Company (RMB millions) 364,867 329,300 10.8 Net assets per share attributable to equity shareholders of the Company (RMB) 4.208 3.798 10.8 Nine-month period ended 30 September (January ~ September) Changes over the same period of 2009 2008 the preceding year(%) Net cash flow from operating activities (RMB millions) 104,860 (4,434) -- Net cash flow from operating activities per share (RMB) 1.209 (0.051) -- Three-month period ended Nine-month period ended 30 September 30 September (July ~ September) (January ~ September) Changes Changes over over the same the same 2009 2008 period 2009 2008 period of the of the preceding preceding year(%) year(%) Net profit attributable to equity shareholders of the Company (RMB millions) 16,524 7,379 123.9 49,714 15,052 230.3 Basic earnings per share (RMB) 0.191 0.085 123.9 0.573 0.174 230.3 Diluted earnings per share (RMB) 0.190 0.078 143.6 0.570 0.135 322.2 Basic earnings per share (before extraordinary gain and loss) (RMB) 0.191 0.095 101.1 0.575 0.192 199.5 Fully diluted return on net assets (%) 4.53 2.34 2.19 13.63 4.77 8.86 percentage percentage points points Fully diluted return (before extraordinary gain and loss) on net assets (%) 4.53 2.62 1.91 13.66 5.26 8.40 percentage percentage points points Extraordinary gain/loss items (Unit: RMB millions) Nine-month period ended 30 September 2009 Gain on disposal of fixed assets (205) Donations 146 Gain on disposal of long-term equity investments and financial assets (228) Net profit or loss of subsidiaries generated from a business combination involving entities under common control before acquisition date (62) Other non-operating income and expenses 379 Subtotal 30 Tax effect (23) Total 7 Attributable to: Equity shareholders of the Company 112 Minority interests (105) PRINCIPAL FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS") At 30 September At 31 December Changes from the 2009 2008 end of the preceding year (%) Total assets (RMB millions) 852,985 779,172 9.5 Total equity attributable to equity shareholders of the Company (RMB millions) 363,539 327,889 10.9 Net assets per share (RMB) 4.193 3.782 10.9 Adjusted net assets per share (RMB) 4.102 3.690 11.2 Nine-month period ended 30 September (January ~ September) Changes over the 2009 2008 same period of the preceding year(%) Net cash flow generated from operating activities (RMB millions) 100,700 (11,443) -- Three-month period ended Nine-month period ended 30 September 30 September (July ~ September) (January ~ September) Changes Changes over the over the same same 2009 2008 period 2009 2008 period of the of the preceding preceding year(%) year(%) Profit attributable to equity shareholders of the Company (RMB millions) 16,551 7,385 124.1 49,797 15,067 230.5 Basic earnings per share (RMB) 0.191 0.085 124.1 0.574 0.174 230.5 Diluted earnings per share (RMB) 0.190 0.078 143.6 0.571 0.135 323.0 Return on net assets (%) 4.55 2.34 2.21 13.70 4.78 8.92 percentage percentage points points

Business Review

Exploration & Production Segment: The Company strengthened the integrated management of exploration and development in key regions to improve the potentials of existing oilfields. As for the development of natural gas, the Sichuan-to-East China Gas Project is close to completion, and the Company is preparing actively for the commencement of operation.

In the first nine months, the segment recorded an operating profit of RMB 12.981 billion, down by 75.2% compared to the same period last year. The Company's output of crude oil and natural gas marked a year-on-year increase of 1.28% and 0.20% respectively.

Refining Segment: The Company accurately arranged a high-load operations of oil refining with the safe mode and optimized the procurement and allocation of crude oil resources. Sinopec corp. adjusted the product mix by increasing the output of high-value-added products to support the environmental protection project of upgrading oil refining devices to implement the state-standard (III) gasoline nationwide and the state-standard (IV) in some regions.

In the first nine months, the segment reported an operating profit of RMB 21.557 billion, up significantly from an operating loss last year. The processing volume of crude oil increased by 2.99% and the output of oil products increased by 3.36%, compared with the same period last year. Light products yield was also increased year-over-year.

Marketing and Distribution Segment: The Company made great efforts to optimize its operating structure, expand sales to end users, increase the sales of gasoline and jets fuels, and enhance the non-oil business and cooperation with key customers. The Company continued expanding the businesses of lube oil and fuel oil and accelerated the project of building new gas stations.

In the first nine months, the segment recorded an operating profit of RMB 22.377 billion, decreasing by 27.7% compared to the same time last year. Domestic sales of oil products for the nine month period was 89.57 million tones, a decrease of 5.53%. Nevertheless, third quarter domestic sales of oil products saw a sequential increase of 18.35%.

Chemicals Segment: The Company devoted major efforts to strengthening the integration of production, sales, and research to increase the output of chemical products, as well as expanding the market for these products. The Company greatly promoted the development and application of new chemical products and strengthened the customer services. In the first nine months, the segment reported an operating profit of RMB 14.305 billion, a substantial increase from RMB 0.376 billion in the same period of last year.

Summary of Principal Operating Results for the First Nine Months Nine-month period Changes over ended September 30 the same period of Operating Data Unit the preceding 2009 2008 year (%) Exploration and Production Crude oil production Million tonnes 31.73 31.33 1.28 Natural gas production Hundred million 61.17 61.05 0.20 cubic metres Crude oil price realised RMB/tonne 2183.35 4,698.73 (53.53) Natural gas price realised RMB/thousand cubic metres 960.11 934.38 2.76 Refining (Note 1) Refinery throughput Million tonnes 134.39 130.49 2.99 Gasoline, diesel oil and kerosene production Million tonnes 83.63 80.91 3.36 Of which: Gasoline Million tonnes 25.57 21.75 17.56 Diesel oil Million tonnes 50.56 53.21 (4.98) Kerosene Million tonnes 7.50 5.95 26.05 Light chemical feedstock Million tonnes 19.31 18.19 6.16 Light products yield % 75.30% 74.64% 0.66 percentage point Refinery yield % 94.28% 93.76% 0.52 percentage point Marketing and Distribution Total domestic sales volume of refined oil products Million tonnes 89.57 94.81 (5.53) Of which: Retail volume Million tonnes 57.67 63.60 (9.32) Direct sales volume Million tonnes 17.51 15.17 15.43 Wholesale volume Million tonnes 14.39 16.04 (10.29) Total number of service stations Station 29,522 29,220 1.03 Of which: Number of company-operated service stations Stations 28,874 28,578 1.04 Number of franchised service station Stations 648 642 0.93 Average annual throughput per station (Note 2) Tonnes/station 2,663 2,967 (10.25) Chemicals (Note 3) Ethylene Million tonnes 4.74 4.85 (2.25) Synthetic resin Million tonnes 7.41 7.33 1.05 Synthetic rubber Million tonnes 0.64 0.65 (1.99) Synthetic fiber monomer and polymer Million tonnes 5.73 5.69 0.65 Synthetic fiber Million tonnes 0.97 0.98 (1.53) Urea Million tonnes 1.40 1.20 17.03 Note 1: The data of the refining segment of 2008 are restated upon the acquisition of Sinopec Qingdao Petrochemical Company Limited; Note 2: Throughput per station data is an annualised average; Note 3: Including 100% outputs of BASF-YPC and Shanghai Secco.

Capital expenditure:

The capital expenditure of the first nine months was RMB 60.28 billion. The Exploration and Production segment marked an expenditure of RMB 28.664 billion which contributed to the completion of Sichuan-to-East China Gas Project, a newly-constructed crude oil refinery with a capacity of 4.12 million tonnes per year, and a natural gas production capacity of 0.591 billion cubic metres per year. The capital expenditure for the Refining segment was RMB 8.063 billion, which was mainly used for upgrading the quality of oil products and successful operation of Zhanjiang refinery auxiliary facilities. The capital expenditure for the Chemicals segment was RMB 16.118 billion, which was primarily used for carrying out the projects in Tianjin and Zhenhai with the production capacity of 1 million tones of ethylene per year. The capital expenditure of the Marketing and Distribution divisions was RMB 6.315 billion, which was largely used for the construction and acquisition of gas stations in key areas and an additional 495 service stations. The capital expenditure for Corporate and Others reached RMB 1.120 billion.

About Sinopec Corp.

Sinopec Corp. is the first Chinese company that has been listed in Hong Kong, New York, London and Shanghai. The Company is an integrated energy and chemical company with upstream, midstream and downstream operations. The principal operations of Sinopec Corp. and its subsidiaries include: exploring, developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products; producing, trading, transporting, distributing and marketing refined oil products; and producing and distributing chemical products. Based on 2007 turnover, Sinopec Corp. is the largest listed company in China. The Company is one of the largest crude oil and petrochemical companies in China and Asia. It is also one of the largest gasoline, diesel and jet fuel and other major chemical products producers and distributors in China and Asia.

For additional information about Sinopec Corp., please visit the Company's website at http://www.sinopec.com .

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.

For more information, please contact: Investor Inquiries: Beijing Tel: +86-10-6499-0060 Fax: +86-10-6499-0022 Email: ir@sinopec.com.cn Hong Kong Tel: +852-2824-2638 Fax: +852-2824-3669 Email: ir@sinopechk.com Media Inquiries: Beijing Tel: +86-10-5996-0028 Fax: +86-10-5996-0386 Email: media@sinopec.com Hong Kong Tel: +852-3512-5000 Fax: +852-2259-9008 Email: sinopec@brunswickgroup.com