Sinopec's Quarterly Net Profit Jumps on Higher Oil Prices

By Kimberley Kao

China Petroleum & Chemical Corp.'s net profit jumped in the third quarter as higher oil prices stemming from the Middle East conflict boosted its margins.

China's biggest oil refiner, better known as Sinopec, said Thursday that net profit for the three months ended September was 13.36 billion yuan, equivalent to $2 billion, up 57% from the same period a year earlier.

Revenue also strengthened, rising 9.3% to 769.74 billion yuan.

The company attributed the results to improved margins for refining and chemical products, optimized product mix and an increase in the yield of high value-added products such as jet fuel, naphtha and refining byproducts.

Uncertainty continues over the war in the Middle East, where fighting has repeatedly broken out as the U.S. and Iran clash over control of the Strait of Hormuz. The ensuing supply disruptions have driven oil and gas prices sharply higher this year.

During the first three quarters, the average spot price of Platts Brent was $94.05 a barrel, up 33% from a year earlier, Sinopec said. Domestic consumption of refined oil products declined by 8.6% over the same period as high oil prices hit demand, and the substitution by new energy accelerated, it said.

Fellow energy giant PetroChina on Wednesday posted a 22% jump in net profit for the third quarter, benefiting from higher oil prices.

"The gasoil market balance will remain tight well into 2027 and is dependent on a recovery of product supply from the Middle East," the IEA said in its latest report.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

October 29, 2026 06:33 ET (10:33 GMT)