China : Sinopec announces profit warning in respect of annual results of 2008

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Sinopec announces profit warning in respect of annual results of 2008

24
Jan '09

China Petroleum & Chemical Corporation announces Annual Results of The Year 2008.

I. Predicted results for the period in issue
1. Results prediction period: 1 January 2008 to 31 December 2008
2. Results prediction position: according to the preliminary calculations of the Financial Department of China Petroleum & Chemical Corporation (the “Company”), the net profit for the year 2008 will decrease by more than 50% compared to the corresponding period of previous year.
3. The results prediction has not been audited by registered accountants.

II. Results of the corresponding period of previous year
1. Net profit attributable to the Company's shareholders: RMB 54.947 billion based on the PRC Accounting Standards; approximately RMB56.533 billion based on the International Financial Reporting Standards.
2. Earnings per share: RMB 0.634 based on the PRC Accounting Standards; approximately RMB0.65 based on the International Financial Reporting Standards.

III. Reasons for the decrease
During the first half of 2008, the international crude oil prices had been continuously climbing. Due to the strict control over refined oil prices in the People's Republic of China (the “PRC”), a distortion to the correlation of the refined oil prices and crude oil prices occurred. The Company has taken various measures to guarantee the supply for the refined oil market in the PRC, which resulted in great losses in the oil-refinery business. Moreover, in the second half of 2008, the price of and the demand for the chemical products declined significantly. A massive decline occurred in overall results of the Company in the year 2008 compared to the corresponding period of previous year.

The specific data will be disclosed in detail in the annual report of 2008. Investors are advised to exercise caution in dealing in the shares of the Company.

China Petroleum & Chemical Corporation

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