Sinopec Beats Expectations with 19.3% Profit Surge Amid Middle East Conflict
Sinopec, the world's largest refiner, has reported a surprising 19.3% year-on-year increase in net profit for the first half of 2026, despite the ongoing Middle East conflict and falling demand for fuel domestically.
The company's net profit stood at 25.63 billion yuan ($3.81 billion) under Chinese accounting standards, up from 21.48 billion yuan a year earlier.
Sinopec relies on the Middle East for half of its crude oil needs, making it vulnerable to supply disruptions. However, the company said it had managed to 'broaden crude oil sourcing outside the Middle East' and optimize its product mix to mitigate losses.
The refining segment reported a 381.5% growth in operating profit due to these efforts, while the chemicals segment remained loss-making but narrowed its losses by around 4 billion yuan.