China Petroleum & Chemical (386) Q1 2026 earnings summary

Executive summary

• Revenue declined by 3.9% year-over-year to RMB 706.7 billion in 1Q 2026, reflecting lower refined oil product demand.

• EBIT rose 19.9% to RMB 28.3 billion and net profit attributable to shareholders increased 26.9% to RMB 17.7 billion under IFRS, while under CASS net profit rose 28.2% to RMB 17.006 billion.

• EPS grew 27.8% year-over-year to RMB 0.147 under IFRS and 29.4% to RMB 0.141 under CASS.

• Operating profit increased 32.6% year-over-year, driven by inventory gains and improved refining margins.

• Net cash flow from operating activities turned negative at RMB -5.6 billion, mainly due to increased margin deposits and inventory costs.

Financial highlights

• Total assets increased to RMB 2,253.8 billion as of March 31, 2026, up from RMB 2,153.5 billion at year-end 2025.

• Liability-to-asset ratio rose to 55.98% from 54.17% at year-end 2025.

• Weighted average return on net assets improved to 2.04% from 1.60% year-over-year.

• Total equity attributable to shareholders reached RMB 833.1 billion.

• Cash and cash equivalents rose 2.5% to RMB 154.6 billion.

Outlook and guidance

• Forward-looking statements highlight risks from price fluctuations, demand, exchange rates, and regulatory changes.

• The company expects continued volatility in crude oil prices due to geopolitical tensions and alternative energy competition.

• Strategic focus remains on optimizing production, expanding new energy initiatives, and enhancing profitability across segments.