Sinopec Surprises with 19.3% Profit Hike Amid Global Oil Volatility

Sinopec, China's largest refiner, defied expectations by reporting a 19.3% year-on-year increase in net profit for the first half of 2026. Despite the Middle East conflict and falling domestic demand for fuel, Sinopec's net profit reached 25.63 billion yuan ($3.81 billion) under Chinese accounting standards.

The company attributed its surprise performance to a combination of factors, including broadening crude oil sourcing outside the Middle East, closely managing purchases in line with market conditions, and optimizing its product mix based on profitability.

Sinopec processed 5.6% less crude oil between January and June compared to the same period last year, at 113.31 million metric tons, or 4.57 million barrels per day (bpd). Its refining margin was up 44.1% on the year in the first half of 2026, rising to 453 yuan per metric ton from 314 yuan per metric ton.

The company's chemicals segment remained loss-making, with an operating loss of over 200 million yuan, but losses narrowed sharply by around 4 billion yuan. Sinopec projects crude throughput for July-December at 113 million metric tons, roughly flat versus the amount processed in the first half.