Updated
Updated · CNBC · Aug 23
Sinopec Lifts H1 Profit 19.3% to 25.63 Billion Yuan Despite 16 Billion Yuan Write-Down
Updated
Updated · CNBC · Aug 23

Sinopec Lifts H1 Profit 19.3% to 25.63 Billion Yuan Despite 16 Billion Yuan Write-Down

3 articles · Updated · CNBC · Aug 23

Summary

  • 25.63 billion yuan in first-half net profit beat last year by 19.3%, even after Sinopec booked 16 billion yuan of inventory and asset impairment charges tied to oil and fuel price volatility.
  • 44.1% higher refining margins drove the surprise gain as the refiner widened crude sourcing beyond the Middle East, timed purchases more closely and shifted output toward more profitable products.
  • 113.31 million metric tons of crude throughput was still 5.6% lower from a year earlier, reflecting weaker domestic fuel demand and supply disruption after the Strait of Hormuz remained largely closed since March.
  • 381.5% growth in refining operating profit offset continued weakness in chemicals, where Sinopec still posted a loss of more than 200 million yuan despite narrowing losses by about 4 billion yuan.
  • 113 million metric tons of crude processing is planned for July-December, roughly flat with the first half, suggesting Sinopec expects demand and supply conditions to remain tight.

Insights

How did Sinopec achieve a massive profit surge while its home market rapidly abandons gasoline for electric vehicles?
Will Sinopec's heavy reliance on discounted Russian crude backfire if global geopolitical dynamics shift again in late 2026?
Could the prolonged closure of the Strait of Hormuz secretly be accelerating China's transition away from traditional fossil fuels?