China’s Sinopec, the world’s largest oil refiner by capacity, has posted a 39.8% drop in net profit for the first half of 2025, with earnings falling to 21.48 billion yuan ($2.99 billion). This marks its weakest interim profit since 2020, driven by declining crude prices, weaker fuel demand, and overcapacity in the chemical sector.
In the first six months of 2025, Sinopec’s oil and gas production rose 2% year-on-year to 262.81 million barrels of oil equivalent.
Natural gas output climbed 5.1% to 736.3 billion cubic feet
Crude oil production slipped 0.3% to 140 million barrels
Meanwhile, sales of refined fuels dropped sharply:
Diesel down 6.7%
Gasoline down 4.9%
Aviation fuel down 8.3%
The decline reflects growing adoption of electric vehicles and cheaper natural gas replacing diesel in transportation and industrial use.
According to Sinopec, the first half of 2025 saw weaker global crude prices, falling domestic fuel demand, and thin margins for chemicals.
For July–December, the company projects:
Crude throughput at 130 million metric tons (around 5.16 million barrels per day), compared with 119.97 million tons in the first half.
Ethylene output – a key petrochemical feedstock – surged 16.4% to 7.56 million tons in H1 and is expected to reach 7.85 million tons in H2.
While Sinopec anticipates higher demand for natural gas and chemical products, it warns that China’s refined fuel consumption will remain under pressure from alternative energy sources.
Following the earnings report, Sinopec’s Hong Kong-listed shares closed up 1.8% at HK$4.49. Year-to-date, the stock has gained 0.9%, compared with a 25.15% surge in the Hang Seng Index.
(Exchange rate: $1 = 7.1781 CNY, crude oil conversion: 1 metric ton = 7.3 barrels)
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