Sinopec Profits Rise on Soaring Energy Prices Despite Refining Woes

Sinopec's first-half profit surged 12% to 26.6 billion yuan (US$4 billion or RM16.2 billion) due to a significant increase in global energy prices, which boosted upstream revenues even as fuel sales declined.

The Brent crude average price from January through June was around US$87 per barrel, compared to approximately US$71 during the same period last year. This sharp rise led to increased revenue for Sinopec's well-head production and higher value for its stored oil reserves.

However, the company's refining business faced challenges due to higher feedstock costs, which it couldn't pass on to consumers. The government implemented measures to curb fuel exports and cap domestic prices to shield the economy from inflation.