October 29, 2004

China Petroleum & Chemical Corporation3Q 2004 Results Announcement

329 October 2004

Agenda

• Performance review of 1Q-3Q04

• Operational plan for 4Q 2004

Performance Review of 1Q-3Q04

529 October 2004

• GDP growth rate was 9.5%

• Prices of crude oil fluctuated and climbed up to a high level

• Strong domestic demand for oil and chemical products, and prices of chemical products remained at high level

Market Environment in 1Q-3Q04

629 October 2004

Results of Operations – Significant Earnings Growth

(RMB million)

Revenue

EBITDA

EBIT

Profit attributable to shareholders

EPS (RMB/share)

318,636

48,811

29,673

17,209

0.197

433,646

66,978

44,563

26,653

0.307

36.09

37.22

50.18

54.88

54.88

(RMB million)

-10000

0

10000

20000

30000

40000

50000

1Q-3Q03 1Q-3Q04

E&P Refining Chemicals

Marketing Corporate

EBIT Contribution by Segment1Q-3Q03 1Q-3Q04 Change (%)

729 October 2004

27.82

2.05

202.70

138.34

31.27

2.07

204.50

152.18

12.38

0.98

0.89

10.00

6.30 6.35 0.79

E&P Segment EBIT

15,496

17,432

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1Q-3Q03 1Q-3Q04

(RMB million)

1Q-3Q03 1Q-3Q04 Change (%)

Crude Realized Price (USD/ bbl)

Gas Realized Price (USD/kcf)

Crude Production (MM bbl)

Gas Production (bcf)

Lifting cost (USD/ bbl)

E & P Segment – Oil and Gas Production Increased Steadily

829 October 2004

84,906

15,812

30,575

3,842

73.50

92.71

12,323

98,678

17,481

37,763

4,643

73.94

92.93

13,022

16.22

10.38

23.51

20.85

44 bps

22 bps

5.67

16,944 20,418 20.50

85.7 92.38 668 bps

3.90 3.86 -1.03

Refining Segment EBIT

4,537

5,730

0

1000

2000

3000

4000

5000

6000

7000

1Q-3Q03 1Q-3Q04

1Q-3Q03 1Q-3Q04 Change (%)

Crude Oil Processed (MT)

Gasoline Production (MT)

Diesel Production (MT)

Kerosene Production (MT)

Light product yield(%)

Refining yield(%)

Chemical feedstock (MT)

Sour crude processed (MT)

Refinery utilization(%)

Refining margin (USD/bbl)

Refining Segment – Improved Refinery Efficiency

(RMB million)

929 October 2004

24,286

5,326

1,652

15,864

11,316

27,992

55,171

29,612

25,654

5,376

2,005

16,591

15,025

38,571

70,188

31,030

5.63

0.94

21.37

4.59

32.78

37.79

27.22

4.79

Marketing Segment EBIT

8,926

12,815

0

2000

4000

6000

8000

10000

12000

14000

1Q-3Q03 1Q-3Q04

1Q-3Q03 1Q-3Q04 Change (%)

Owned and Operated

Franchised

Annual Throughput per Station (tonne/site)

Wholesale (MT)

Distribution (MT)

Retail (MT)

Domestic Sales of Oil Products (MT)

Total No. of Gas Stations

Marketing Segment — Continued to Increase Sales Volume

(RMB million)

1029 October 2004

Unit: ‘000 tonnes

2,613.8

392.5

1,617.1

3,828.8

935.3

379.8

1,771.3

2,670.1

414.6

2,151.6

4,061.9

971.5

430.1

2,104.8

3,302.6 3,620.1 9.61

2.15

5.63

33.05

6.09

3.87

13.24

18.83

Chemical Segment EBIT

1,798

10,020

0

2000

4000

6000

8000

10000

12000

1Q-3Q03 1Q-3Q04

1Q-3Q03 1Q-3Q04 Change (%)

Chemical Segment — Earnings Significantly Improved

Ethylene

Synthetic Rubber

Urea

Synthetic Resins

Synthetic Fiber

Differential fiber

Performance compound

Synthetic Fiber Monomer & Polymer

(RMB million)

1129 October 2004

Improved Asset Efficiency, Strengthened Core Business

• In 3Q04, the company made provisions for some inefficient gas stations, oil tanks and chemical assets.

• According to IFRS, write off and provisions on long-lived assets during the 3Q04 amounted to RMB 1.63 billion. Among which, Marketing Segment accounted for RMB1.142 billion, Chemical Segment accounted for RMB332 million, Refining Segment accounted for RMB156 million. Depreciation reduction of RMB209 million is expected next year.

1229 October 2004

Capital Expenditure

Total Capex during 1Q-3Q04: RMB 42.33 bn

• E&P – RMB 14.25 bn, newly added 3.33 MM tpa oil production capacity and 0.158 bcm per year gas production capacity

• Refining – RMB 7.33 bn ， refinery projects aimed to add a comprehensive capacity of 9.5 MM tpa is under construction

• Marketing – RMB 14.37 bn, newly added 1,148 company-owned gas stations

• Chemical – RMB 5.71 bn, Qilu ethylene capacity expansion up to 720 M tpa has been successfully completed

• Corporate and others – RMB 0.67 bn

33.66%

17.32%13.49%

33.95%

1.58%

E&P Refining Chemicals

Marketing Corporate

In addition, RMB 5 bn of Capex in Secco and other JV projects

Capex Distribution during 1Q-3Q2004

Operational Plan for 4Q 2004

1429 October 2004

Market Outlook for 4Q04

• Domestic demand for oil and chemical products will maintain a strong growth momentum

• Prices of crude oil will continue to fluctuate at high level

• Chemical business is expected to remain in the cycle upturn

1529 October 2004

Operational Plan for 4Q 2004

9.82

1.50

34.24

972

24.00

12.60

38.62

5.81

132.92

3642

94.19

51.17

Q4 ’04E 2004E

Crude Production (MM Tonnes)

Gas Production (bcm)

Refining Throughput (MM Tonnes)

Ethylene Production (kt)

Domestic Sale of Refined Products(MM Tonnes)

Of which ： Retail(MM Tonnes)

1629 October 2004

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For Further Information

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