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28 April 2006

China Petroleum & Chemical CorporationQ1 2006 Results Announcement

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Market Environment in Q1 2006

• Chinese economy maintained rapid growth

• Domestic demand of oil and chemical products sustained growth momentum

• Crude oil prices kept hiking

• Prices of chemical products remained at high levels

• According to the comprehensive scheme to further improve petroleum pricing mechanism, the government began to impose special income levy on E&P companies and moderately raised domestic oil product prices from 26 March.

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Results of Operation

(RMB million)

Turnover and other operating revenues 227,195 174,127 30.48

EBITDA 22,853 24,970 -8.48

EBIT 14,862 16,880 -11.95

Profit after taxation 9,339 11,042 -15.42

Minority Interests 51 1,405 -96.37

Profit attributable to equity shareholders of the Company 9,288 9,637 -3.62

EPS (RMB/share) 0.107 0.111 -3.62

1Q06 1Q05 Change %

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Financial Status

(RMB million)

Short-term debts 48,895 40,411

Long-term debts 68,374 67,059

Equity attributable to equity shareholders of the Company 232,844 223,556

Net cash flow from operating activities 1,612 12,793

Net cash flow used in investing activities 14,943 13,112

Net cash flow from financing activities 11,843 2,101

Cash and cash equivalent – ending balance 12,250 18,165

At 31 March 2006 At 31 December 2005

1Q06 1Q05

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E & P Segment

Note: 1 tonne = 7.1 barrel, 1 cubic meter = 35.31 cubic feet Exchange rate: 1 USD=8.04 RMB for 1Q 2006 and 1 USD=8.28 RMB8.28 for 1Q 2005

15.466.477.47Lifting cost (USD/bbl)

50.6836.1954.53Crude realised price (USD/bbl)

16.962.242.62Gas realised price (USD/kcf)

2.8167.6769.57Crude production (mmbbls)

23.4251.8764.02Gas production (bcf)

16,623 159.986,394EBIT (RMB million)

1Q06 1Q05 Change%

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(million tonnes)

Crude oil throughput34.33

Gasoline production5.82 -4.98

Diesel production 13.82 13.11 5.42

Kerosene production 1.54 1.68 -8.33

Light chemical feedstock production 5.77 4.99 15.63

Light yield (%) 74.81 73.48 133bps

Refining yield (%) 93.64 92.63 101bps

1Q06 1Q05 Change %

Refining Segment

35.17 2.45

5.53

8

3.49

-1.03

2.071.97

-1.5

-0.5

0.5

1.5

2.5

3.5

4.5

1Q05 1Q06

1.5

2.0

2.5

Refining Cash operating cost

Refining Margin/Cash Operating Cost

(USD/bbl)

Refining Segment EBIT

(RMB million)(USD/bbl)

1,671

-7,875

-10,000

-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

1Q05 1Q06

Note: Exchange rate: 1 USD=8.04 RMB for 1Q 2006 and 1 USD=8.28 RMB8.28 for 1Q 2005

Refining Segment Earnings

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Marketing Segment

Domestic sales of refined oilproduct (million tonnes) 26.03 24.13 7.87

Incl. Retail (million tonnes) 16.67 13.46 23.85

Direct sales (million tonnes) 4.91 5.35 -8.22

Total No. of gas stations (site) 29,744 30,164 -1.39

Incl. Owned and operated (site) 27,464 26,682 2.93 Franchised (site) 2,280 3,482 -34.52

Annualised throughput per station (tonnes) 2,428 2,018 20.32

1Q06 1Q05 Change %

10

2000

3000

4000

5000

6000

Jan Mar May Jul Sep Nov

2004 2005 2006

2000

3000

4000

5000

Jan Mar May Jul Sep Nov

2004 2005 2006

Domestic RON 90# Gasoline Retail Guidance Price

(RMB/Tonne)

(RMB/Tonne)

Domestic 0# Diesel Retail Guidance Price

Marketing Segment EBIT

3,5423,329

0

1,000

2,000

3,000

4,000

1Q05 1Q06

(RMB million)

Marketing Segment Earnings

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Chemicals Segment

(‘000 tonnes)

Ethylene production 1,514 1,122 34.94

Synthetic resins production 2,075 1,683 23.29

Synthetic rubber production 161 158 1.90

Synthetic fiber monomer & polymer production 1,782 1,596 11.65

Synthetic fiber production 390 400 -2.50

Urea production 441 388 13.66

1Q06 1Q05 Change %

Note: The ethylene and synthetic resin production in 1Q 06 include 100% of those of YPC- Basf and Shanghai Secco

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Chemicals Segment Earnings

5,911

3,135

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1Q05 1Q06

Chemicals price spread(1990 through Apr. 2006)

Chemicals Segment EBIT

(RMB million)(USD/tonne)

0

200

400

600

800

1000

1200

Jan-1990

Jan-1992

Jan-1994

Jan-1996

Jan-1998

Jan-2000

Jan-2002

Jan-2004

Jan-2006

LDPE-Naphtha PP-Naphtha

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Capex in 1Q 06 totaled RMB 14.39 billion

• E & P – RMB 5.372 billion. Newly added crude production capacity of 1.27 million tonnes/year and gas production capacity of 469 million cubic meters/year

• Refining – RMB 2.821 billion. The revamping of Guangzhou and Yanshan refining units and some other secondary processing units went on smoothly

• Marketing – RMB 4.136 billion, mainly used for establishing logistics system, constructing and purchasing gas stations. 97 new gas stations were added during the reporting period

• Chemicals – RMB 1.725 billion. Revamping of Maoming ethylene and Shanghai ethylene glycol, Yangzi aromatics and PTA, and coal gasification projects for three chemical fertilizers plants, progressed smoothly

Capital Expenditure

(RMB billion)

0

10

20

30

40

50

60

70

80

2006 Plan 2006 1Q

E&P Refining Marketing

Chemicals Others

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