Sinopec 2025 Profit Fell on Lower Product Prices, Sales

By Jason Chau and Megan Cheah

China Petroleum & Chemical Corp. reported a fall in net profit last year, as its crude oil and petrochemical product prices declined amid lower international crude oil prices.

The Chinese energy major said Sunday that net profit for 2025 dropped 34% to 32.48 billion yuan, equivalent to $4.72 billion, while revenue fell 9.5% from a year earlier to 2.78 trillion yuan.

Analysts had expected a net profit of 38.15 billion yuan and revenue of 3.071 trillion yuan, according to an LSEG consensus estimate.

China's biggest oil refiner, better known as Sinopec, said the results were weighed by a decrease in prices of its petroleum and petrochemical products. Lower sales volume of refined oil products also hit its results.

International crude oil prices fluctuated with a downward trend last year, Sinopec said. Brent crude oil prices averaged $69.10 a barrel in 2025, down 14.5% from 2024, it said.

The board proposed a final cash dividend of 0.112 yuan a share, compared with 0.14 yuan in 2024.

In 2026, the company expects domestic demand for natural gas and chemical products to grow as China's economy recovers, while demand for refined oil products could be dragged down by alternative energy. It plans to invest between 131.6 billion yuan and 148.6 billion yuan in capital expenditure this year.

The refiner's weaker-than-expected earnings come as risks of significant supply disruptions hang over oil and gas markets with the conflict in Iran damaging energy infrastructure across Gulf countries and halting shipments through the Strait of Hormuz, a key global oil transit route.

The disruption has prompted China to instruct refiners, including Sinopec, to suspend diesel and gasoline exports.

Sinopec is also undergoing a restructuring with China National Aviation Fuel Group, the country's largest aviation fuel service provider. Analysts at Citi expect the move to strengthen Sinopec's refining and marketing segment, particularly in jet fuel and sustainable aviation fuel, and help offset the structural decline in gasoline and diesel demand in China, which has already peaked.

Meanwhile, the refiner's management remains cautious about its chemicals business, though demand for its higher value-added refined products is likely to grow in the long term, said Morningstar director Chokwai Lee.

Sinopec is the first among China's three major oil and gas companies to report annual results. Cnooc and PetroChina are scheduled to report their earnings later this week.

Write to Jason Chau at jason.chau@wsj.com and Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

March 22, 2026 20:31 ET (00:31 GMT)