China Petroleum & Chemical Corporation

Q1-Q3 2006 Results Announcement

October 31, 2006Beijing

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前三季度的市场环境

• China’s economy maintained rapid growth with GDP up 10.7% in Q1-Q3

• Domestic demand for refined oil products and chemical products maintained growth

• International crude oil price experienced a record high, then decreased dramatically

• Price control on refined oil products remains in effect, chemicals prices keep high

Market Environment in Q1-Q3

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Profit Growth

RMB million 1-9 ’06 1-9 ’05 change%

Turnover and other operating revenues

773,910 592,588 30.60

EBITDA 78,908 70,017 12.70

EBIT 54,168 47,176 14.82

Profit attributable to equity

shareholders of the Company34,417 28,249 21.83

Minority interests 250 2,386 -89.52

EPS (RMB) 0.397 0.326 21.83

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Financial Position

RMB million As of 30 Sep. 2006 As of 31 Dec. 2005

Short-term debt 65,121 40,411

Long-term debt 66,474 67,059

Equity attributable to equity shareholders of the Company

246,702 223,556

RMB million 1-9 ’06 1-9 ’05

Cash flow from operating activities 44,220 40,759

Cash flow used in investing activities -69,779 -44,443

Cash flow from financing activities 22,153 2,546

Cash & cash equivalents - ending balance 10,308 15,228

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E&P – Operational Summary

Note: 1 tonne = 7.1 barrels， 1 cubic meter = 35.31 cubic feet

1-9 ’06 1-9 ’05 change%

Crude production (million tonnes) 30.02 29.19 2.84

Gas production (billion cubic meters) 5.348 4.529 18.08

Crude realized Price (RMB/tonne) 3,388.03 2,525.89 34.13

Gas realized Price (RMB/’000 cubic meters) 750.70 657.92 14.10

Lifting cost (RMB/tonne) 470.35 428.84 9.68

EBIT (RMB million) 50,929 31,836 59.97

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(million tonnes) 1-9 ’06 1-9 ’05 change%

Crude oil processed 108.70 104.07 4.45

Gasoline production 16.97 17.23 -1.51

Diesel production 43.01 40.49 6.22

Light chemical feedstock production 17.16 15.50 10.71

Kerosene production 4.75 5.18 -8.30

Light yield (%) 74.64 74.20 44 bps

Refining yield (%) 93.63 93.23 40 bps

Refining- Operational Summary

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Refining - Segment Performance

90

-131

119117

-140

-120

-100

-80

-60

-40

-20

0

20

40

60

80

100

1-9 '05 1-9 '06

80

90

100

110

120

130

Refining Margin Cash Operating Cost

-7,926

-29,193

-35000

-30000

-25000

-20000

-15000

-10000

-5000

0

1-9'05 1-9'06

Refining Margin / Cash Operating Cost

Refining Margin(RMB/tonne)

Cash Operating Cost(RMB/tonne) RMB million

EBIT of Refining Segment

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1-9 ’06 1-9 ’05 change%

Domestic sales of refined oil products (million tonnes)

83.06 77.50 7.17

Incl. Retail (million tonnes) 54.27 46.18 17.52

Distribution (million tonnes) 14.49 15.42 -6.03

Total number of gas stations (site) 28,546 30,583 -6.66

Incl. Self-operated stations (site) 27,746 27,048 2.58

Franchized stations (site) 800 3,535 -77.37

Annualized throughput of self-operated stations (tonnes/station)

2,608 2,277 14.54

Marketing – Operational Summary

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Marketing - Segment Performance

2,000

3,000

4,000

5,000

6,000

Jan Mar May Jul Sep Nov

2003 2004 2005 2006

9,376

20,576

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

1-9 '05 1-9 '062,000

3,000

4,000

5,000

6,000

Jan Mar May Jul Sep Nov

2003 2004 2005 2006

RON #90 Gasoline Guidance PriceRMB/Tonne

#0 Diesel Guidance Price RMB/Tonne

EBIT of Marketing Segment

RMB million

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Unit: 1,000 tonnes 1-9 ’06 1-9 ’05 change%

Ethylene 4,534 3,849 17.80

Synthetic resin 6,289 5,547 13.38

Synthetic rubber 490 468 4.70

Monomer & polymer for synthetic fiber 5,401 4,929 9.58

Synthetic fiber 1,137 1,161 -2.07

Urea 1,321 1,450 -8.90

Chemicals — Operational Summary

Note: 100% production from YPC-BASF and Shanghai-Secco was included.

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Chemicals - Segment Performance

12,060

14,647

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1-9 '05 1-9 '06

0

200

400

600

800

1,000

1,200

Jan-1990

Jan-1992

Jan-1994

Jan-1996

Jan-1998

Jan-2000

Jan-2002

Jan-2004

Jan-2006

LDPE-Naphtha PP-Naphtha

Chemicals Price Spread (1990 - Sep. 2006)

USD/tonne

EBIT of Chemicals SegmentRMB million

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Capital Expenditure

Exploration and Production: RMB 18.081 billion. Newly built production capacity of crude oil and natural gas was 4.13 million tonnes per year and 1.287 billion cubic meters per year respectively

Refining: RMB 7.098 billion. Construction of the Yizheng-Changling crude oil pipeline completed; the refinery revamping projects in Guangzhou, Yanshan and Qingdao progressed smoothly

Marketing : RMB 8.51 billion. Construction and acquisition of gas stations in key areas continued with 542 newly added stations

Chemicals: RMB 9.328 billion. Maoming ethylene expansion project, ethylene projects of Fujian and Tianjin as well as other projects were proceeding on schedule.

Corporate & Others – RMB 1.622 billion

Q1-Q3 2006 Capex: RMB 44.639 bnRMB, million

80,390

44,639

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2006 Adjusted Plan 1-9 '06 A

E&P Refining MarketingChemical Others

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