China Petroleum & Chemical CorporationQ1-Q3 2005 Results Announcement

28 October 2005

32005-10-28

Market Environment in Q1-Q3

China’s economy maintained steady growth with GDP up 9.4% in Q3

Domestic demand for refined oil products and chemical products maintained growth

Crude oil price experienced a record high

Price control on refined oil products remained in effect

Prices of petrochemical products stayed at high level

42005-10-28

RMB million

Turnover and other operating revenues

592,588 439,652 34.79

EBITDA 70,017 69,749 0.38

EBIT 47,176 46,394 1.69

Profit for the period 30,635 31,145 -1.64

- Minority interests 2,386 3,605 -33.81

- Attributable to equity holders

of the parent 28,249 27,540 2.57

EPS (RMB) 0.326 0.318 2.57

Q1-Q3 ‘05 Q1-Q3 ‘04 Change %

-20000

-10000

0

10000

20000

30000

40000

50000

60000

Q1-Q3 '04 Q1-Q3 '05

E & P RefiningChemicals MarketingCorporate & Others

EBIT by Segment

(RMB million）

Operating Results

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Financial Highlights

RMB million

Short-term debt 36,103 32,307

Long-term debt 76,494 60,822

Equity attributable to equity holders of the parent 210,885 193,040

Cash flow from operating activities 40,759

Cash flow for investing activities -44,443

Cash flow from financing activities 2,546

Cash & cash equivalents - ending balance 15,228

As of 30 Sep. 2005 As of 31 Dec. 2004

Q1-Q3 ‘05

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E & P Operating Summary

Crude Production (million tonnes) 29.19 28.80 1.35

Gas Production (billion cubic meters) 4.53 4.31 5.10

Crude Realized Price (USD/bbl) 43.33 31.63 36.99

Gas Realized Price (USD/’000 cubic feet) 2.27 2.07 9.66

Lifting Cost (USD/bbl) 7.29 6.35 14.80

EBIT (RMB million) 31,836 17,432 82.63

Q1-Q3 ‘04 Change %Q1-Q3 ‘05

Note: 1 tonne = 7.1 barrel ， 1 cubic meter = 35.31 cubic feet Prices for Q1-Q3 2004 were converted at USD 1=RMB 8.28, while for Q1-Q3 2005 were at weighted average rate.

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Refining Operating Summary

(million tonnes)

Crude Oil Throughput 104.07 98.68 5.46

Gasoline Production 17.23 17.48 -1.43

Diesel Production 40.49 37.76 7.23

Light Chemical Feedstock Production 15.50 13.02 19.05

Kerosene Production 5.18 4.64 11.64

Light Yield (%) 74.20 73.94 26 bps

Refining Yield (%) 93.23 92.93 30 bps

Q1-Q3 ‘04 Change %Q1-Q3 ‘05

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Refining Segment Performance

3.86

1.48

1.921.94

1

2

3

4

5

Q1-Q3 '04 Q1-Q3 '05

1.5

2.0

2.5

Refining Margin Cash Operating Cost

5,783

-7,926-10000

-8000

-6000

-4000

-2000

0

2000

4000

6000

8000

Q1-Q3 '04 Q1-Q3 '05

Refining Margin/Cash Operating Cost

Refining Segment EBIT

(RMB million)(USD/bbl) (USD/bbl)

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Marketing Operating Summary

Domestic sales of refined oil product (million tonnes)

77.50 70.19 10.41

Incl. Retail (million tonnes) 46.18 38.57 19.73

Distribution (million tonnes) 15.42 15.03 2.59

Total number of gas stations (site) 30,583 31,030 -1.44%

Incl. Self-operated stations (site) 27,048 25,654 5.43%

Franchised stations (site) 3,535 5,376 -34.24%

Annualized throughput of self-operated st

ations (tonnes/station)2,277 2,005 13.57%

Q1-Q3 ‘04 Change %Q1-Q3 ‘05

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Marketing Segment Performance

12,815

9,376

0

2000

4000

6000

8000

10000

12000

14000

Q1-Q3 '04 Q1-Q3 '05

2000

3000

4000

5000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2003 2004 2005

2000

3000

4000

5000

Jan Mar May Jul Sep Nov

2003 2004 2005

RON #90 Gasoline Guidance Price

#0 Diesel Guidance Price

RMB/Tonne

RMB/Tonne

(RMB million)

EBIT of Marketing Segment

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Chemicals Operating Summary

(thousand tonnes)

Ethylene 3,849 2,996 28.47

Synthetic Resins 5,547 4,504 23.16

Incl. Performance Compound 2,559 2,207 15.95

Synthetic Rubber 468 415 12.77

Synthetic Fiber Monomer & Polymer 4,929 4,465 10.39

Synthetic Fiber 1,161 1,239 -6.30

Incl. Differential Fiber 568 536 5.97

Urea 1,450 2,152 -32.62

Q1-Q3 ‘04 Change %Q1-Q3 ‘05

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Chemicals Segment Performance

11,639

14,647

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q1-Q3 '04 Q1-Q3 '05

0

200

400

600

800

1000

1200

Jan-1990 Jan-1993 Jan-1996 Jan-1999 Jan-2002 Jan-2005

LDPE-Naphtha PP-Naphtha

EBIT of Chemicals Segment Chemicals Price Spread (1990 - Oct. 2005)RMB million

USD/tonne

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Capital Expenditure

E & P – RMB 15.013 bn, newly added crude production capacity of 2.98 million tonnes/year and gas production capacity of 570 million cubic meters/year

Refining – RMB 6.839 bn upgrading capacity expansion projects were on schedule some of which already in operation

Marketing – RMB 9.182 bn, construction of oil pipeline in south-western China is close to completion, newly added 742 self-owned stations

Chemicals – RMB 4.777 bn, revamping projects incl. Maoming ethylene progressing smoothly

Corporate & Others – RMB 0.672 bn

In addition, RMB 2.313 bn invested in Shanghai-Secco, BASF-YPC and other JV projects

E & P

Refining

Marketing

Chemicals

Corporate& Others

Q1-Q3 2005 Capex: RMB36.483 bn

Q1-Q3 2005 Capex Breakdown

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For Further Information

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