Sinopec reports 19.3% profit growth despite Middle East supply disruptions

Sinopec (China Petroleum & Chemical Corporation) 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). This growth occurred despite significant challenges, including the Middle East conflict which disrupted oil supplies through the Strait of Hormuz and falling domestic fuel demand in China.

To mitigate supply risks, the company has begun broadening its crude oil sourcing outside of the Middle East, looking toward regions such as Brazil and Africa. While Sinopec recorded a 16 billion yuan ($2.4 billion) asset impairment charge due to volatile oil and fuel prices, its refining segment saw a massive 381.5% surge in operating profit. This was driven by improved refining margins and optimized product mixes.

Looking ahead, the company plans to invest over 30 billion yuan in new energy and new materials between 2026 and 2030 to address shifting demand. For the second half of the year, Sinopec aims to process 113 million tonnes of crude oil and increase its exploration and production output.