Sinopec Reports 2024 Decline in Net Income and Revenue

Sinopec's fiscal year 2024 shows negative trends with a decline in both net income and revenue. Investors should be cautious as challenges in the crude oil market and narrowing profit margins could impact stock performance.

Date: 23-03-2025

AI Rating: 4

Net Income Decline: Sinopec's IFRS net income dropped to RMB 48.939 billion from RMB 58.310 billion in the previous fiscal year, leading to a decrease in earnings per share (EPS) from RMB 0.487 to RMB 0.404. This significant reduction in profitability is a cause for concern among investors.

Revenue Decline: The company also reported a decline in annual revenues from RMB 3.212 trillion to RMB 3.075 trillion, indicating a contraction in its business operations. Revenue growth is critical for maintaining investor confidence, and this decline could lead to negative sentiment in the market.

Factors Affecting Performance: The report highlights several challenges faced by Sinopec in 2024, including fluctuating international crude oil prices, accelerated domestic new energy adoption, and increased new production capacity in the chemical market, all contributing to narrowing profit margins. These factors point to a tough market environment and could further impact Sinopec's future earnings potential.

Dividend Distribution: Despite the negative financial outcomes, the company has approved a final cash dividend of RMB 0.14 per share for 2024. However, given the reduction in net income and revenue, the dividend may not fully reassure investors about the company's financial health.

Stocks: SNP