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Sinopec Profit Soars Despite Oil Woes
23 Aug
Summary
- Sinopec's first-half net profit rose 19.3% year-on-year.
- The company processed 5.6% less crude oil than the previous year.
- Refining margins surged 44.1% due to strategic sourcing.
Sinopec Shanghai Petrochemical Co Ltd Class A announced a substantial 19.3% rise in net profit for the first half of 2026 compared to the same period last year. The company's net profit for January to June reached 25.63 billion yuan. This financial performance was achieved despite a 5.6% decrease in crude oil processing, with 113.31 million metric tons handled.
The refiner's refining margin saw a significant increase of 44.1%, growing to 453 yuan per metric ton. Operating profit in the refining segment experienced a notable surge of 381.5%. This was attributed to expanded crude oil sourcing beyond the Middle East and a flexible approach to managing purchase timing.
Sinopec, which sources half its crude oil from the Middle East, has been impacted by disruptions affecting key import routes. Furthermore, the company faced challenges with falling domestic fuel demand and limitations in passing on increased oil costs to consumers due to Beijing's policies.
