Sinopec’s half-year profit grew 19.3% on year despite Iran war, falling demand
It said it set aside provisions for asset impairment of 16 billion yuan as a result of the volatility in oil, fuel...
China's 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), despite challenges such as the Middle East conflict and falling domestic fuel demand. The company set aside 16 billion yuan for asset impairment due to oil price volatility. The Strait of Hormuz has been largely closed since March, causing Sinopec to import less than half of its crude oil needs from the Middle East.
Operating profit for the refining segment grew 381.5% year-on-year, driven by diversifying crude oil sources, managing purchases smartly, and optimizing the product mix. The chemicals segment, however, remained a loss-making area, with operating losses narrowing by around 4 billion yuan.
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