Sinopec Posts Record Profit as Refining Margin Surges Amid Middle East Crisis

Sinopec Shanghai Petrochemical Co Ltd Class A (SS:600688) reported a significant increase in net profit for the first half of 2026, despite the ongoing Middle East crisis. The company's net profit rose by 19.3% year-on-year to 25.63 billion yuan ($3.81 billion), according to its filing with the Shanghai stock exchange.

The state-owned refiner processed 113.31 million metric tons of crude oil between January and June, a decline of 5.6% compared to the same period last year. However, Sinopec's refining margin increased by 44.1% year-on-year, reaching 453 yuan per metric ton.

The company attributed its improved results to expanding crude oil sourcing outside the Middle East, managing purchase timing according to market conditions, and adjusting its product mix based on profitability. This strategy allowed Sinopec to minimize the impact of the Strait of Hormuz closure, which has remained largely closed since March.