Sinopec Profit Soars 12% on Global Energy Price Surge

China's biggest oil refiner, Sinopec, saw its first-half profit rise 12% from last year as global energy prices surged. The company earned 26.6 billion yuan ($4 billion) in the six months through June, up from 23.8 billion yuan in the same period in 2022.

The increase in oil prices boosted revenue for Sinopec's upstream production and also increased the value of its stored oil. However, higher oil prices meant higher feedstock costs for the company's refining business, which produces fuels, chemicals, and plastics.

The Chinese government has taken steps to shield the economy from inflation by capping domestic fuel prices and curbing exports. Sinopec plans to invest 82.9-99.9 billion yuan in capital spending in the second half of the year, targeting production of 141.8 million barrels of crude oil and 746.3 billion cubic feet of natural gas.