Sinopec's 2024 Results Show Commitment to Shareholders and Growth
Sinopec's Impressive 2024 Operating Results
China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec") proudly shared its 2024 operating revenue report, revealing remarkable figures that highlight the company's remarkable performance. According to the guidelines set by International Financial Reporting Standards, Sinopec's revenue for the year reached 3.07 trillion yuan (approximately USD 422.739 billion). This impressive achievement comes with a profit attributable to shareholders of 48.94 billion yuan (around USD 6.74 billion) and earnings per share of 0.404 yuan.
Commitment to Shareholder Returns
In light of these positive financial results, Sinopec is reinforcing its commitment to its shareholders. The company is implementing a return-oriented strategy that emphasizes quality and efficiency improvement. This includes an ambitious dividend distribution plan for the next three years, alongside a pioneering market value management approach. For the year 2024, it is anticipated that the shareholders will receive a cash dividend of 0.286 yuan per share (pre-tax), contributing to a projected total payout ratio of 75 percent when combined with share repurchase initiatives.
Record Production Levels
Sinopec's production metrics for 2024 have reached unprecedented heights, demonstrating strong operational capabilities:
Oil and Gas Production
In total, the company produced 515.35 million barrels of oil and gas equivalent, translating to approximately 1,400.4 billion cubic feet of natural gas—an increase of 4.7 percent year-on-year. Additionally, Sinopec reported a domestic oil and gas reserve replacement rate of 144 percent, underlining its robust exploration and production strategies.
Refined Products and Chemicals
Crude oil processing also saw significant gains, with a total of 252 million tonnes processed in 2024. The production of kerosene rose by 8.6 percent on a year-on-year basis, contributing to the company's refined oil products reaching total sales of 239 million tonnes. Furthermore, Sinopec achieved record levels in PX production and ethylene output, reaching 13.47 million tonnes for the latter, with a sales volume of chemical products totaling 83.45 million tonnes, 13.1 percent of which were for exports.
Innovation and Sustainability Initiatives
Sinopec recognizes the vital role of innovation in driving future growth. The company is actively embracing technological advancements and enhancing operational efficiency. It has successfully launched the world's first cyclohexene esterification hydrogenation unit and a digital twin-based smart ethylene factory. Additionally, it has made impressive strides in hydrogen production, completing China's first factory-scale seawater hydrogen production demonstration project.
Climate Change Response
Beyond its operational achievements, Sinopec is taking concrete steps to address climate change challenges. The company is in its second phase of a green enterprise action program and has initiated the "10,000 PV Sites" project, significantly boosting its renewable energy capacity. Notably, its annual carbon capture volume saw a 20.1 percent increase year-on-year, while methane recovery increased by 9.4 percent. Sinopec is also committed to maintaining a low-carbon trajectory, having established hydrogen fuel cell supply centers nationwide and developed innovative transport corridors for hydrogen energy.
Looking Towards the Future
As the year unfolds, Sinopec is positioned to leverage the anticipated economic growth in the region. According to Ma Yongsheng, President of Sinopec, the company will focus on high-end, intelligent, and green development while executing its transition to low-carbon operations. Detailing these plans, he emphasized the importance of fulfilling corporate social responsibilities and collaborating with global partners to achieve sustainable development agendas. These strategic moves will ultimately aim to create added value for both shareholders and society.
Frequently Asked Questions
What were Sinopec's 2024 revenue and profit figures?
Sinopec reported an operating revenue of 3.07 trillion yuan and a profit attributable to shareholders of 48.94 billion yuan in 2024.
What is Sinopec's dividend plan for shareholders?
The company plans to distribute a cash dividend of 0.286 yuan per share for 2024, with an expected payout ratio of 75 percent.
How much oil and gas did Sinopec produce in 2024?
Sinopec produced 515.35 million barrels of oil and gas equivalent in 2024, a 4.7 percent increase from the previous year.
What sustainability initiatives is Sinopec undertaking?
Sinopec is executing its second phase of a green enterprise action program, including expanding its renewable energy projects and increasing carbon capture and methane recovery.
What is Sinopec's future outlook?
Sinopec aims to focus on intelligent and green development to enhance its operational capacity and environmental responsibility as China's economy grows.
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