Sinopec Defies Odds with Record Net Profit Amid Global Uncertainty

China's Sinopec reported an unexpected 19.3% year-on-year increase in net profit for the first half of 2026, despite a litany of issues including the Middle East conflict and falling demand for fuel domestically.

The company's net profit over the January-June period stood at 25.63 billion yuan ($3.81 billion) under Chinese accounting standards, versus the 21.48 billion yuan a year earlier.

Sinopec attributed its success to 'broadening crude oil sourcing outside the Middle East, closely managing the timing of purchases in line with market conditions, and optimising its product mix based on product profitability.'

Its refining segment reported a 381.5% growth in operating profit, while the chemicals segment remained loss-making but saw losses narrow by around 4 billion yuan.