China Petroleum & Chemical Corp (Sinopec) said net profit rose 19.3% in the first half of 2026 to 25.63 billion yuan ($3.81 billion), compared with 21.48 billion yuan a year earlier.
The company processed 113.31 million metric tons of crude oil between January and June, a 5.6% decline from the same period in 2025. Refining margins increased 44.1% year-on-year to 453 yuan per metric ton, while the refining segment’s operating profit surged 381.5%.
Sinopec attributed the profit growth to expanded crude sourcing outside the Middle East, tactical purchasing, and product mix adjustments despite persistent supply risks. The Strait of Hormuz, a critical route for Middle Eastern oil imports, has remained largely closed since March, forcing the company to rely on alternative suppliers.
Domestic fuel demand softened during the period, and Beijing restricted price increases, limiting Sinopec’s ability to pass higher oil costs to consumers. The company recorded a 16 billion yuan asset impairment provision due to oil and fuel price volatility.
Sinopec, listed as China’s largest refiner, sources roughly half of its crude from the Middle East, making supply disruptions a persistent operational challenge.
