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April 30,2004

China Petroleum & Chemical CorporationQ1 2004 Results Announcement

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Agenda

• Performance Review of Q1 2004

• Operation Estimates for Q2 2004

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Performance Review of Q1 2004

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• GDP growth rate of 9.7%

• Prices of crude oil and refined oil products fluctuate at relatively high level

• Significant increase in chemical prices on yoy basis

Market Environment in Q1 2004

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(RMB billion)

Revenue

EBITDA

EBIT

Profit Attributable to Shareholders

EPS (RMB/Share)

23.19

25.05

24.77

24.77

18.54

11.02

6.42

0.074

17.37

104.20 128.36

13.78

8.01

0.092

20.59

Q1 03 Q1 04 Change(%)

Results of Operation- Significant Earnings Growth

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167.90

43.6

29.1

(RMB billion)Change(%)

Q1 04

18.334

5.297

12.257

10.073

175.91

50.8

28.9

4.77

16.51

-0.69

Sound Financial Position

As ofDec. 31, 2003

As ofMar. 31, 2004

Shareholders’ Equity

Long-term Debt

Short-term Debt

Cash and Cash Equivalent – Ending Balance

Net Cash Flow from Financing Activities

Net Cash Flow for Investing Activities

Net Cash Flow from Operating Activities

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E & P —Production Continue to Grow

1,762.00

619.00

9,287.2

1,260

-4.73

-2.02

2.70

10.71

1,678.63

606.47

9,538.3

1,395

Lifting Cost (USD / bbl) 6.14 3.756.37

EBIT (RMB million) 5,617 -19.084,545

Q1 03 Q1 04 Change(%)

Crude Production (‘000 tonne)

Gas Production (million cubic meter)

Crude Realized Price (RMB / tonne)

Gas Realized Price (RMB / ’000 cubic meter)

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

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27,631

5,128

9,915

1,409

74.30

92.64

4,211

17.15

11.76

21.46

4.83

-45bps

18bps

7.67

32,369

5,731

12,043

1,477

73.85

92.82

4,534

5,625 15.256,483

Q1 03 Q1 04 Change(%)

Refining -Adjust Product Mix, Increase Throughput

Crude Oil Throughput

Gasoline Production

Diesel Production

Kerosene Production

Light Yield (%)

Refining Yield (%)

Chemical Feedstock Production

Of which: Sour-Crude Throughput

Unit: ‘000 tonne

10

4.23.76

0.00

1.00

2.00

3.00

4.00

5.00

Q1 03 Q1 04

2,169

1,196

0

500

1,000

1,500

2,000

2,500

Q1 03 Q1 04

Refining – Earnings Increased Yoy

Refining Margin

(USD/bbl)

Refining Segment EBIT

(RMB million)

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5,580

3,283

8,952

17,814

28,894

24,065

4,829

1,686

-4.55

34.05

33.79

21.84

5.27

2.56

18.78

4.21

5,326

4,401

11,977

21,705

30,416

24,680

5,736

1,757

Q1 03 Q1 04 Change(%)

Maketing –Increased Volume, Optimized Structure

Owned and Operated

Franchised

Annual Throughput Per Station (tonne/site)

Wholesale (‘000 tonne)

Distribution (‘000 tonne)

Retail (‘000 tonne)

Domestic Sale of Refined Product (‘000 tonne)

Total No. of Gas Stations

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4,1183,816

0

1,000

2,000

3,000

4,000

5,000

Q1 03 Q1 04

Marketing – Sustainable Earnings Growth

Domestic RON 90# Gasoline Guidance Price

(RMB/Tonne)

(RMB/Tonne)

Domestic 0# Diesel Guidance Price

Marketing Segment EBIT

(RMB MM)

2000

3000

4000

Jan Mar May Jul Sep Nov

2003 2004

2000

3000

4000

Jan Mar May Jul Sep Nov

2003 2004

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Unit: ‘000 tonne

1,030.8 18.39

859.8 8.32

128.9 18.00

390.3 38.74

1,261.6 10.45

299.1 4.71

1,220.4

931.3

152.1

541.5

1,393.4

313.2

Q1 03 Q1 04 Change(%)

Chemical – Increased Volume

Ethylene

Synthetic Resins

Synthetic Rubber

Synthetic Fiber Monomer & Polymer

Synthetic Fiber

Urea

14

3,635

751

0

1,000

2,000

3,000

4,000

5,000

Q1 03 Q1 04

Chemical – Increased Profitability

Chemicals Price Spread(1990 through Apr 2004)

Chemical Segment EBIT

(RMB MM)

0

200

400

600

800

1000

1200

Jan-90 Jan-92 Jan-94 Jan-96 Jan-98 Jan-00 Jan-02 Jan-04

LDPE-Naphtha PP-Naphtha

USD/tonne

15

E & P

Refining

Marketing

Chemical

Corporateand Others

Total ： RMB11.157 billion

• E & P – RMB4,856MM ， breakthroughs in exploration of consealed reserves in eastern china. Newly added crude capacity of 820 thousand tonnes/year

• Refining – RMB 1,452MM ， Ningbo-Shanghai-Nanjing crude pipeline will be put into operation soon, some revamped projects were progressing

• Marketing – RMB3,447MM ， construction of South-West oil pipeline and upgrading retail networks progressed smoothly

• Chemical – RMB995MM ， Qilu ethylene upgrading project and other chemical revamping projects progressed smoothly

• Corporate and Others – RMB407MM ， IT projects including ERP progressed smoothly

In addition, Capex for JV projects including Shanghai-Secco project was RMB 1,549MM

Capital Expenditure

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Operational Estimates for Q2 2004

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Market Outlook for Q2

• Chinese economy will continue to maintain relatively high growth rate providing a favorable external environment for the Company’s operations

• International prices of crude oil and refined products are expected to maintain at high level

• Chemicals continue to experience cyclical upturn

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billion cubic meter

‘000 tonne

9.62

1.44

33.00

915

22.30

12.50

4.40

9.54

1.40

32.37

931

21.70

11.98

4.40

Q2 04E Q1 04A

Operational Estimates for 2Q

Crude Production

Gas Production

Refining Throughput

Ethylene Production

Domestic Sale of Refined Products

Retail

Distribution

million tonne

million tonne

million tonne

million tonne

million tonne

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