THE CHINA Petroleum and Chemical Corporation (Sinopec) recorded an operating profit of 73.5 billion renminbi for 2014, down 24.1 per cent on the previous year.

The result, based on International Financial Reporting Standards, came after the company made 2.82 trillion renminbi in turnover, other operating revenues and other income – a fall of 1.9% on the previous year.

Sinopec attributed that decline to lower crude oil and petrochemical product prices, with the company’s operating profit from exploration and production down 14.1% to 47.1 billion renminbi.

Company chairman Fu Chengyu said the company had focused on growth quality and efficiency, achieving safe and stable production under severe market conditions.

“We effectively controlled the cost of each segment and maintained favourable growth momentum through adjustment and improvement in our business and product structure,” he said.

“In 2015, China will enter a new normal phase of slower growth while international crude oil prices are likely to stay low. The Company still faces a challenging operating environment.”

As a result, Sinopec would put more emphasis on restructuring, resource optimisation, innovation and risk control.

“In exploration, we will focus on making commercial discoveries by exploiting reserve potential in frontier areas and other key promising regions, aiming to improve the success rate of exploration,” the company said.

“In 2015, we plan to produce 300 million barrels of crude oil domestically and 48 million barrels overseas; we also plan to produce 886.3 billion cubic feet of natural gas in 2015.”