Sinopec First-Half Net Fell on Weak Demand

By P.R. Venkat

China Petroleum & Chemical's net profit in the first half fell over 19% on year, mainly due to weak demand for chemical and certain refinery products, including naphtha and petroleum coke.

Net profit for the period ended June was 36.12 billion yuan ($4.95 billion), while revenue fell 1.1% on year to CNY1.59 trillion, the company, also known as Sinopec, said Sunday.

Sinopec attributed the decline in revenue to lower prices for crude oil, refined oil products and chemical products and lower sales volume of petrochemical products.

In the second half, the company intends to spend CNY104.0 billion on capital expenditure, of which over 39% will be used for exploration and production.

"Given the comprehensive impact of geopolitics, changes in global supply, demand, and inventory, international crude oil prices are expected to fluctuate at medium and high price levels," the company said.

In the second half, Sinopec expects China's economy to improve. Domestic demand for refined oil products is expected to pick up, and gradual recovery is expected for natural gas and chemical products, it said.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

August 27, 2023 20:12 ET (00:12 GMT)

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