By Kimberley Kao

China Petroleum & Chemical Corp. is scheduled to report full-year results on Friday. Here is what you need to know:

NET PROFIT: The Chinese oil major, also known as Sinopec, is likely to post profit of 56.21 billion yuan, equivalent to $7.76 billion, according to the consensus estimate of analysts polled by Visible Alpha. That would be a 3.7% decline from a year earlier.

REVENUE: Annual revenue is expected at 3.217 trillion yuan, according to Visible Alpha, essentially flat from a year ago.

Hong Kong-listed shares of Sinopec rose 8.8% for 2024, compared with the benchmark Hang Seng Index's 18% gain, despite concerns about softer Chinese oil demand, partly driven by the country's economic woes. The stock is down about 4% this year.

WHAT TO WATCH:

--OIL DEMAND: Global oil demand growth slowed significantly in 2024, driven by weakness in top crude importer China. Chinese oil demand and OPEC+ production cuts remain key factors for earnings in the fourth quarter through the first half of this year, analysts at Huatai Research wrote in a note. In 2025, the "global oil supply should remain loose, and the average oil price could face downward pressure in the short term," they said.

--GEOPOLITICS OUTLOOK: China's retaliatory tariffs against the U.S. of 15% on liquefied natural gas and coal and 10% on crude oil imports will likely have a limited impact on Chinese state refiners, Citi Research analysts said in recent notes. However, tightened U.S. sanctions on Russia and Iran likely prompted small oil refiners in China and Indian refiners to seek alternative crude sources, potentially hurting the gross refining margins of Sinopec and Asian refiners, as the premium for spot crude spiked in January, they said.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

March 20, 2025 23:04 ET (03:04 GMT)

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