Sinopec's half-year profit grew 19.3% on year despite Iran war, falling demand

Business Recorder reported that China's Sinopec posted a first-half 2026 net profit of 25.63 billion yuan, up 19.3% from a year earlier, a result the company disclosed in a Shanghai filing on Sunday. The figure was above the 21.48 billion yuan recorded in the same period last year and came despite the Middle East conflict and weaker domestic fuel demand. Sinopec also said it had set aside 16 billion yuan for asset impairment tied to swings in oil and fuel prices during the first six months.

Sinopec's crude throughput fell 5.6% in January to June to 113.31 million metric tons, or 4.57 million barrels per day, while ethylene output dropped 15.5% to 6.4 million tons. Its refining margin rose 44.1% to 453 yuan per metric ton, a gain the company linked to wider crude sourcing beyond the Middle East and tighter control over purchase timing. The chemicals unit still posted an operating loss of over 200 million yuan, although that loss narrowed by around 4 billion yuan.

Sinopec expects crude throughput of about 113 million metric tons for July to December, roughly level with the first half. The company, the world's biggest refiner, gets about half its crude from the Middle East, and the Strait of Hormuz has stayed largely shut since March. In the filing, management pointed to sharp crude price swings and weak domestic fuel and chemicals markets.