Chinese oil refiner Sinopec’s half-year profit grows 19.3% despite Iran war, falling demand
Result surprising, given how exposed it was to Strait of Hormuz and how Beijing has it absorb price shock.
China's Sinopec, the world's largest refiner, reported a surprising 19.3% year-on-year increase in net profit for the first half of 2026, despite ongoing issues such as the Middle East conflict and falling domestic demand. The company's net profit for the January-June period reached 25.63 billion yuan, up from 21.48 billion yuan a year earlier.
Sinopec's refining margin surged 44.1% year-on-year, reaching 453 yuan per tonne, due to a strategic shift in oil sourcing and efficient management of purchases. The company had to write down its inventories by 16 billion yuan due to volatility in oil and fuel prices. While Sinopec relies heavily on Middle East crude oil for half of its needs, it processed 5.6% less crude oil in the first half compared to the same period last year.
The company managed to optimize its product mix based on profitability and broaden its crude oil sourcing outside the Middle East. Despite the challenges, Sinopec's result highlights its resilience and adaptability in the face of the ongoing crisis.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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