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April 29, 2005

China Petroleum & Chemical CorporationQ1 2005 Results Announcement

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• Chinese economy maintained fast growth

• Domestic demand of oil and chemical products

sustained growth momentum

• Crude oil prices were volatile

• Prices of chemical products remained at high levels

Market Environment in Q1

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Results of Operation- Significant Earnings Growth

(RMB million)

Revenue 174,127 129,608 34.35

EBITDA 24,970 21,526 16.00

EBIT 16,880 14,388 17.32

Profit after taxation 11,042 9,448 16.87

Minority Interests 1,405 1,142 23.03

Profit attributable to shareholders

of the parent9,637 8,306 16.02

EPS (RMB/share) 0.111 0.096 16.02

1Q05 1Q04 Change %

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Sound Financial Position

(RMB million)

Short-term Debt 37,154 32,307

Long-term Debt 69,906 60,822

Shareholders’ funds attributable to shareholders of the parent

202,677 193,040

Net Cash Flow from Operating Activities 12,793

Net Cash Flow used in Investing Activities 13,112

Net Cash Flow from Financing Activities 2,101

Cash and Cash Equivalent – Ending Balance 18,165

At 31 March 2005 At 31 December 2004

1Q05

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E & P

Note: 1 tonne = 7.1 barrel ， 1 cubic meter = 35.31 cubic feet

Crude Production (‘000 tonnes) 9,530.5 9,538.3 -0.08

Gas Production (billion cubic meters) 1.469 1.395 5.30

Crude Realized Price (RMB / tonne) 2,127.29 1,678.63 26.73

Gas Realized Price (RMB / ’000 cubic meters) 655.36 606.47 8.06

Lifting Cost (USD / bbl) 6.47 6.37 1.57

EBIT (RMB million) 6,394 4,545 40.68

1Q05 1Q04 Change %

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(million tonnes)

Crude Oil Throughput 34.33 32.37 6.05

Gasoline Production 5.82 5.73 1.57

Diesel Production 13.11 12.04 8.89

Light Chemical Feedstock Production 4.99 4.53 10.15

Kerosene Production 1.68 1.48 13.51

Light Yield (%) 73.48 73.85 -37 bps

Refining Yield (%) 92.63 92.82 -19 bps

1Q05 1Q04 Change %

Refining - Adjusted Product Mix, Increased Throughput

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Refining Earnings

Refining Margin/Cash Operating Cost

(USD/bbl)

Refining Segment EBIT

(RMB million)

4.2

3.49

1.97

1.89

1

2

3

4

5

1Q04 1Q05

1.5

2.0

2.5

Refining Margin Cash Operating Cost

2,187

1,671

0

500

1,000

1,500

2,000

2,500

3,000

1Q04 1Q05

(USD/bbl)

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Marketing –Increased Volume, Optimized Structure

Domestic sales of refined oilproduct (million tonnes)

24.13 21.70 11.20

Incl. Retail (million tonnes) 13.46 11.98 12.35

Distribution (million tonnes) 5.35 4.40 21.59

Total No. of gas stations (site) 30,164 30,416 -0.83

Incl. Owned and operated (site) 26,682 24,680 8.11

Franchised (site) 3,482 5,736 -39.30

Annual throughput per station (tonne/site) 2,018 1,757 14.85

1Q05 1Q04 Change %

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Marketing Earnings

Domestic RON 90# Gasoline Guidance Price

(RMB/Tonne)

(RMB/Tonne)

Domestic 0# Diesel Guidance Price

Marketing Segment EBIT(RMB million)

4,118

3,542

0

1,000

2,000

3,000

4,000

5,000

1Q04 1Q05

2000

3000

4000

5000

Jan Mar May Jul Sep Nov

2003 2004 2005

2000

3000

4000

5000

Jan Mar May Jul Sep Nov

2003 2004 2005

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Chemicals – Increased Volume

(‘000 tonnes)

Ethylene 1,121.8 1,041.5 7.71

Synthetic Resins 1,683.1 1,544.9 8.95

Incl. Performance Compound 845.6 725.8 16.51

Synthetic Rubber 158.1 152.1 3.94

Synthetic Fiber Monomer & Polymer 1,595.6 1,515.2 5.31

Synthetic Fiber 400.0 407.1 -1.74

Incl. Differential Fiber 195.1 133.7 45.92

Urea 388.3 541.5 -28.29

1Q05 1Q04 Change %

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Chemicals Earnings

Chemicals Price Spread(1990 through Mar 2005)

Chemicals Segment EBIT

(RMB MM)

USD/tonne

4,175

5,911

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1Q04 1Q05

0

200

400

600

800

1000

1200

Jan-1990

Jan-1992

Jan-1994

Jan-1996

Jan-1998

Jan-2000

Jan-2002

Jan-2004

LDPE-Naphtha PP-Naphtha

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Total： RMB11.359 billion

• E & P – Newly added crude production capacity of 600 thousand tonnes/year and newly added gas production capacity of 90 million cubic meters/year

• Refining – the 2nd phase of Ningbo-Shanghai-Nanjing crude pipeline is close to completion; crude pipeline along the Yangzi River is under construction; some revamping projects were on schedule

• Chemicals –major chemical revamping projects, incl. Maoming ethylene progressed smoothly

• Marketing – oil product pipeline in southwestern China is close to completion and upgrading of retail network progressed smoothly

• Corporate and Others –IT projects including ERP progressed smoothly

In addition, Capex for JV projects, incl. Shanghai-Secco and BASF-YPC was RMB 1.292 billion.

Capital Expenditure

RMB million

E&P 4,451

Refining1,256

Chemical804

Marketing4,719

Corporate& Others

129

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