Sinopec's interim profit soars on stronger oil, gas prices

CHINA Petroleum and Chemical Corp (Sinopec) reported that interim net income surged 10.4 per cent to a record 43.53 billion yuan (S$8.8 billion), thanks to strong oil and gas prices despite weakened domestic fuel sales.

Sinopec, the world’s largest refiner by capacity, reported revenues of 1.61 trillion yuan for the 6 months, up 27.9 per cent from year-earlier levels.

Domestic peers PetroChina and CNOOC have all reported record interim profits.

During the period, Sinopec processed a total of 120.76 million tonnes of crude oil, down 4.2 per cent a year ago, and its refined fuel sales fell 9.8 per cent to 98.42 million tonnes, the company said in a stock filing.

Strict Covid-19 restrictions and fuel export curbs dampened production, leading to the first annual decline in refinery output in China since 2011.

Sinopec produced 139.65 million barrels of crude oil during the 6 months, up 1.1 per cent, while its natural gas output gained 5.4 per cent to 613.92 billion cubic feet.

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Capital expenditure for the half-year came in at 64.65 billion yuan, from 57.94 billion yuan a year earlier. REUTERS