Sinopec Profit Soars to Record Despite China Oil Demand Near Two Low

China state-owned oil giant Sinopec (China Petroleum & Chemical Corp), the world’s biggest oil refiner by capacity, posted record first-half profits as higher global oil and gas prices outweighed a mixed market for fuel in China.  China’s oil demand fell to near a two-year low in July. The result follows strong first-half results came after fellow state-owned oil giants PetroChina Co. and Cnooc Ltd. profits.

Sinopec is state owned by the Chinese Government

Big oil rivals also delivered record profits. Saudi Aramco Oil, The UK’s BP, Netherland’s Shell, America’s ExxonMobil, the largest U.S. oil companyChevron, Phillips 66 and Occidental all crushed earnings on surging oil and gas prices. Oil prices have pulled back around 20% since suggesting these record profits may be high points.

China Petroleum & Chemical Corp H1 2022 Record Earnings

Sinopec said net income rose 11% to 44.5 billion yuan ($6.5 billion) in the first half of the year, and revenues of 1.61 trillion yuan for the six months, up 27.9% from year earlier according to an exchange filing as output rose despite covid lockdowns in China dampening domestic fuel demand.

The company’s core refining business was hit by pandemic lockdowns, with operating profit falling 24% from the same period last year. China’s oil demand fell to near a two-year low in July. 


  • Oil and gas output rose 2.9% to 242 million barrels of oil equivalent
  • Domestic crude oil production reached 124.6 million barrels, up 0.8% year-on-year
  • Natural gas production totaled 613.92 billion cubic feet, up 5.4
  • Refinery throughput was 121 million tonnes of crude oil,
  • Total sales volume of refined oil products reached 98.42 million tonnes, of which total domestic sales volume accounted for 78.46 million tonnes
  • Ethylene production was 6.85 million tonnes, up by 5.9% year on year.

Capital Expenditure and Debt Reduction

  • Capital expenditures rose to 64.7 billion yuan in the first half, compared to 57.9 billion yuan in the same period last year.
  • Sinopec is targeting a massive ramp-up in spending over the second half of the year to 133.4 billion yuan.


Chairman Ma Yongsheng on the earnings call that the company will buy back its Hong Kong and Shanghai-listed shares for the first time since listing over 20 years ago and will pick an “appropriate timing” to do so.


China Petroleum and Chemical Corp, said that annual processing volumes for 2022 will fall by 6% from a year earlier after the country’s COVID measures curtailed fuel demand at home.

Will vigorously shift from producing refined oil products to chemicals and specialty products, increase production of high value-added products and specialty products, and promote the growth of lubricants, sulfur and asphalt. In the second half of the year plan to process 120 million tonnes of crude oil.

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the production, sale, storage and transportation of refinery products, petrochemical products, coal chemical products, synthetic fibre, and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information; hydrogen energy business and related services such as hydrogen production, storage, transportation and sales; battery charging and swapping, solar energy, wind energy and other new energy business and related services.

Sources: Bloomberg, TC

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