China Petroleum & Chemical reports 40% profit drop in first half

Published 21/08/2025, 11:58
China Petroleum & Chemical reports 40% profit drop in first half

Investing.com -- China Petroleum (OTC:SNPTY) & Chemical Corp., known as Sinopec (OTC:SHIIY), reported a 40% decline in net profit for the first half of 2025, as lower oil prices weighed on the company’s performance.

The Chinese state-owned energy major said Thursday that net profit fell to 21.48 billion yuan ($2.99 billion) for the six months ended June, while revenue dropped 11% to 1.409 trillion yuan compared to the same period last year.

Sinopec (SS:600028), China’s biggest oil refiner, pointed to a sharp drop in international crude oil prices and sluggish gross profit margins in the chemical market as key factors behind the weaker results.

Brent crude oil prices averaged $71.70 a barrel in the first half, representing a 15% decrease from a year earlier, according to the company.

Sales of petroleum products, which account for more than half of Sinopec’s revenue, fell 12% to 807.9 billion yuan, primarily due to declines in both volume and price of refined oil products.

The company reported that domestic refined oil demand decreased by 3.6%, with lower diesel and gasoline demand, while domestic natural gas consumption continued to grow, rising by 2.1%.

Capital expenditure for the period totaled 43.8 billion yuan, which was mainly directed toward exploration and production activities.

Looking ahead, Sinopec stated it aims to process 130 million tons of crude oil in the second half of 2025.

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