Sinopec Posts Record First-Half Profits on Rising Oil Prices

Sinopec posted record first-half profits as higher global oil and gas prices outweighed a mixed market for fuel in China.

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(Bloomberg) — Sinopec posted record first-half profits as higher global oil and gas prices outweighed a mixed market for fuel in China. 

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China Petroleum & Chemical Corp., as the firm is officially known, said net income rose 11% to 44.5 billion yuan ($6.5 billion) in the first half of the year, according to an exchange filing. Oil and gas output rose 2.9% and diesel production increased 7.4% despite covid lockdowns in China dampening domestic fuel demand.

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The refiner’s capital expenditures rose to 64.7 billion yuan in the first half, compared to 57.9 billion yuan in the same period last year. It’s targeting a massive ramp-up in spending over the second half of the year to 133.4 billion yuan. 

The company’s strong first-half results came after fellow state-owned oil giants PetroChina Co. and Cnooc Ltd. saw profits soar on the backs of higher energy prices. Brent crude prices were about 60% higher on average during the first half from the previous year.

The company’s core refining business was hit by pandemic lockdowns, with operating profit falling 24% from the same period last year. China’s oil demand fell to near a two-year low in July.