China Petroleum & Chemical Corp (Sinopec) reported a 19.3% year-on-year increase in net profit for the first half of 2026, reaching 25.63 billion yuan ($3.81 billion), according to figures released on Sunday.
The state-owned refiner recorded a provision for asset impairment of 16 billion yuan due to volatility in oil and fuel prices during the January-June period. Crude oil processed totaled 113.31 million metric tons, equivalent to 4.57 million barrels per day, a 5.6% decline from the same period last year.
Refining margins expanded significantly, rising 44.1% year-on-year to 453 yuan per metric ton, an increase of 139 yuan from the prior-year level. The refining segment's operating profit surged 381.5%, offsetting challenges in its core business despite ongoing disruptions.
Sinopec, which sources approximately half of its crude oil from the Middle East, has faced supply constraints since March due to the closure of the Strait of Hormuz. The company mitigated these disruptions by diversifying crude sourcing outside the region, optimizing purchase timing based on market conditions, and adjusting product mixes to prioritize higher-margin outputs.
Domestic fuel demand declined during the period, while Beijing maintained restrictions on passing higher oil costs to consumers through fuel price increases. The company's ability to navigate these constraints underscores its operational flexibility amid volatile market conditions.
