China Petroleum & Chemical Corporation 1H 2008 Results Announcement August 26, 2008 Hong Kong.

China Petroleum & Chemical Corporation

1H 2008 Results Announcement

August 26, 2008Hong Kong

2008-08-26 2

This presentation and the presentation materials distributed herein include forward-

looking statements. All statements, other than statements of historical facts, that address

activities, events or developments that Sinopec Corp. expects or anticipates will or may

occur in the future (including but not limited to projections, targets, estimates and

business plans) are forward-looking statements. Sinopec Corp.'s actual results or

developments may differ materially from those indicated by these forward-looking

statements as a result of various factors and uncertainties, including but not limited to

price fluctuations, actual demand, exchange rate fluctuations, exploration and

development outcomes, estimates of proven reserves, market shares, competition,

environmental risks, changes in legal, financial and regulatory frameworks, international

economic and financial market conditions, political risks, project delay, project approval,

cost estimates and other risks and factors beyond our control. In addition, Sinopec Corp.

makes the forward-looking statements referred to herein as of today and undertakes no

obligation to update these statements.

Disclaimer

2008-08-26 3

Agenda

1H 2008 Business Overview

1H 2008 Operational Results

2H 2008 Operational Plan

1H 2008 Business Overview

2008-08-26 5

Review of Market Environment

China’s economy maintained steady and rapid growth, GDP increased by 10.4%

Domestic consumption of refined oil products grew by 13.9%

Domestic ethylene-equivalent consumption grew by 2.5%

International crude oil prices surged

Domestic refined oil product prices remained tightly controlled

Chemical product prices kept rising, driven by the surge of feedstock price

2008-08-26 6

RMB million 1H 2007 1H 2008 Change %

Turnover, other revenues and other income

563,870 768,185 36.2

EBITDA 73,054 29,657 (59.4)

EBIT 53,584 7,222 (86.5)

Net profit attributable to shareholders of the Company

36,375 8,255 (77.3)

EPS (RMB) 0.420 0.095 (77.3)

Profitability

2008-08-26 7

RMB million 1H 2007 1H 2008

Net cash flow from operating activities 62,295 2,640

Net cash flow used in investing activities (46,465) (46,901)

Net cash flow (used in)/ generated from financing activities

(12,960) 45,072

RMB million As of 31 Dec. 2007 As of 30 Jun. 2008

Short-term debts 44,654 64,758

Long-term debts 83,134 101,529

Equity attributable to shareholders of the Company

307,433 310,871

Financial Position

2008-08-26 8

Capital Expenditure

E&P: RMB 20.981 billion. Newly added production capacity of crude oil was 2.79 million tonnes per year and that of natural gas was 480 million cubic meters per year

Refining: RMB 3.849 billion. Qingdao project and upgrades of Gaoqiao, Wuhan and Luoyang completed. A new crude terminal has achieved mechanical completion at Caofeidian port in Bohai Bay

Marketing and Distribution: RMB 4.548 billion. Improved marketing network; newly built 195 service stations

Chemicals: RMB 5.907billion. YPC 100 ktpa butadiene commenced production; Tianjin, Zhenhai ethylene projects and Jinling PX project progressed on schedule

Corporate and others: RMB 1.251 billion

36,536

121,800

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2008 Plan 1H 2008

E&P RefiningMarketing ChemicalsCorporate & others

RMB Million

2008-08-26 9

1.3%

12.0%12.8%

0%

5%

10%

15%

20%

2006 2007 1H 2008

ROCE

Note: ROCE for 1H 2008 is not annualized

0.040.05

0.03

0.11

0.115

0.00

0.05

0.10

0.15

0.20

2006 2007 1H 2008

Interim Year-end

Dividend Per ShareRMB Yuan

Return and Dividend

1H 2008 Operational Results

2008-08-26 11

1H 2007 1H 2008 Change %

Crude oil production (mm bbls) 143.88 147.38 2.4

Natural gas production (bcf) 139.55 144.15 3.3

Lifting cost (RMB/tonne) 550 604 9.8

Newly added proved reserves of crude oil

(mm bbls)147.88 159 7.3

Newly added proved reserves of natural gas (bcf) 158.63 186.92 17.8

As of 31 Dec. 2007

As of 30 Jun. 2008

Change %

Proved reserves of crude oil (mm bbls) 3,024 3,035 0.4

Proved reserves of natural gas (bcf) 6,330.8 6,373.6 0.7

Proved reserves of oil and gas (mm boe) 4,079 4,097 0.4

E&P－ Operational Summary

2008-08-26 12

22,750

27,098

0

5,000

10,000

15,000

20,000

25,000

30,000

1H 2007 1H 2008

2,792

4,365

917

800

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1H 2007 1H 2008

0

100

200

300

400

500

600

700

800

900

1,000

Crude Oil Natural Gas

E&P Segment Performance

Crude Oil and Natural Gas Realized prices EBIT of E&P Segment

Crude OilRMB/tonne

Natural GasRMB/’000 cubic meter RMB million

2008-08-26 13

1H 2007 1H 2008 Change %

Refinery throughput (mm tonnes) 78.94 84.25 6.7

Gasoline production (mm tonnes) 12.79 13.78 7.7

Diesel production (mm tonnes) 29.91 33.80 13.0

Kerosene production (mm tonnes) 4.10 3.94 (3.9)

Light chemical feedstock production

(mm tonnes)12.26 12.07 (1.5)

Light yield (%) 73.93 74.68 75bps

Refining yield (%) 93.73 93.87 14bps

Refining－ Operational Summary

2008-08-26 14

265

(752)

130141

-1,000

-800

-600

-400

-200

0

200

400

1H 2007 1H 2008

-150

-100

-50

0

50

100

150

Refining Margin Cash Operating Cost

(46,021)

5,730

-50,000

-40,000

-30,000

-20,000

-10,000

0

10,000

1H 2007 1H 2008

Refining Segment Performance

EBIT of Refining SegmentRefining Margin / Cash

Operating Cost

Refining Margin(RMB/tonne)

Cash Operating Cost(RMB/tonne)

RMB million

2008-08-26 15

1H 2007 1H 2008 Change %

Domestic sales of refined oil products

(mm tonnes)

57.92 63.02 8.8

Incl. Retail (mm tonnes) 36.01 42.91 19.2

Distribution (mm tonnes) 10.15 10.37 2.2

Wholesale (mm tonnes) 11.77 9.73 (17.3)

Total gas stations 28,898 29,188 1.0

Incl. self-operated stations 28,153 28,551 1.4

Franchised stations 745 637 (14.5)

Annualized average throughput of self-operated stati

ons (tonnes/station)

2,558 3,006 17.5

Marketing－ Operational Summary

2008-08-26 16

2,000

3,000

4,000

5,000

6,000

7,000

Jan Mar May Jul Sep Nov

2005 2006 2007 2008

2,0003,0004,0005,0006,0007,0008,000

Jan Mar May Jul Sep Nov

2005 2006 2007 2008

RMB/tonne 1H 2007 1H 2008

Marketing cash operating cost

133.80 152.91

16,795

22,334

0

5,000

10,000

15,000

20,000

25,000

1H 2007 1H 2008

Marketing Segment Performance

RON #90 Gasoline Guidance Price EBIT of Marketing Segment

#0 Diesel Guidance Price

RMB/TonneRMB million

RMB/Tonne

2008-08-26 17

Unit: 1,000 tonnes 1H 2007 1H 2008 Change %

Ethylene* 3,273 3,307 1.0

Synthetic resin* 4,774 4,923 3.1

Monomers & polymers for synthetic fiber 3,938 3,768 (4.3)

Synthetic fiber 721 681 (5.5)

Synthetic rubber 360 460 27.8

Urea 813 685 (15.7)

Chemicals－ Operational Summary

* 100% production from YPC-BASF and Shanghai-Secco included.

2008-08-26 18

8,542

4,533

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1H 2007 1H 2008

RMB/tonne 1H 2007 1H 2008

Ethylene cash operating cost

1,320 1,288

0

200

400

600

800

1,000

1,200

Jan-2002 Jan-2003 Jan-2004 Jan-2005 Jan-2006 Jan-2007 Jan-2008

LDPE-Naphtha PP-Naphtha

Chemicals Segment Performance

Chemicals Price Spread (2002 – Jul. 2008)

EBIT of Chemicals Segment

USD/tonneRMB million

2H 2008 Operational Plan

2008-08-26 20

Market Environment for 2H 2008

China’s economy is expected to maintain growth momentum

Demand for oil products and petrochemicals will increase steadily

International crude oil prices will remain high

Domestic refining business will still be under pressure

Demand growth for chemical products may slow down

2008-08-26 21

2H 2008 E FY 2008 E

Crude oil production (mm tonnes) 21.24 42.00

Natural gas production (bcm) 4.20 8.28

Refinery throughput (mm tonnes) 89.75 174.00

Total domestic sales of refined oil products (mm tonnes)

64.00 127.02

Ethylene production (mm tonnes) 3.26 6.57

2H 2008 Operational Plan

2008-08-26 22

http://www.sinopec.com

Investor Relations

Beijing: Tel: (8610) 64990060 Fax: (8610) 64990022Email: [email protected]

Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669Email: [email protected]

New York: Tel: (212) 759 5085 Fax: (212) 759 6882Email: [email protected]

Media Relations

Tel: (8610) 64990092Fax: (8610) 64990093Email: [email protected]

For Further Information