Core Viewpoint - China Petroleum & Chemical Corporation (Sinopec) reported a decline in revenue and net profit for the first three quarters of 2025, primarily due to falling oil prices and weak demand in the refined oil sector [1][2]. Financial Performance - For the first three quarters of 2025, Sinopec achieved operating revenue of 2,113.441 billion yuan, a year-on-year decrease of 10.69% - The net profit attributable to shareholders was 29.984 billion yuan, down 32.23% year-on-year - The basic earnings per share (EPS) was 0.25 yuan, reflecting a 32.51% decline compared to the previous year [1] - In Q3 2025, the company reported operating revenue of 704.389 billion yuan, a year-on-year decrease of 10.88% but a quarter-on-quarter increase of 4.56% [1][2]. Segment Performance - The exploration and development segment generated an operating profit of 35.5 billion yuan, down 72 million yuan year-on-year - The refining segment saw a slight improvement, while the marketing and chemical segments experienced declines in profitability [2] - In Q3, the operating profits for each segment were 11.9 billion yuan (exploration), 3.7 billion yuan (refining), 2.7 billion yuan (marketing), and -2.9 billion yuan (chemical), with mixed quarter-on-quarter performance [2]. Exploration and Development - Sinopec increased its exploration efforts, with exploration expenses rising by 31.9% to 8.4 billion yuan - The company achieved an oil and gas equivalent production of 394.48 million barrels, a year-on-year increase of 2.2% [3]. Refining and Chemical Production - The refining segment optimized its processing load, producing 186 million tons of crude oil, a decrease of 2.2% year-on-year, and 111 million tons of refined oil, down 4.7% [4] - The chemical segment saw an increase in production, with ethylene output rising by 15.4% to 11.59 million tons and synthetic resin production increasing by 11.8% to 16.71 million tons [4]. Industry Outlook - The domestic oil refining capacity is expected to be capped at 1 billion tons, with the current expansion nearing policy limits - Sinopec, as a leading player in the petrochemical industry, is anticipated to benefit from the ongoing consolidation and exit of inefficient capacities in the sector [5]. - Profit forecasts for Sinopec indicate a net profit of 40.41 billion yuan in 2025, with expected growth rates of -19.7%, 9.8%, and 21.6% for the following years [5].