Sinopec Defies Expectations with 19% Profit Hike Amid Global Oil Turmoil
China's Sinopec, the world's largest refiner, has reported an unexpected 19.3% year-on-year increase in net profit for the first half of 2026, despite a litany of challenges including the Middle East conflict and falling demand for fuel domestically.
The company processed 5.6% less crude oil between January and June versus the same period last year, at 113.31 million tonnes or 4.57 million barrels per day (bpd), according to its filing with the Shanghai stock exchange on August 23.
Sinopec's refining margin was up 44.1% on the year in the first half of 2026, up 139 yuan per tonne to 453 yuan per tonne, a surprising jump, given that domestic fuel price hikes lagged the surges in crude oil cost.
The company said it had to write down its inventories by 16 billion yuan (S$3 billion) and set aside provisions for asset impairment of 16 billion yuan as a result of the volatility in oil and fuel prices in the first six months of this year.