By HOU Ruining
China Petroleum & Chemical Corporation (Sinopec), one of China's three largest oil and gas enterprises, has reported a 20-percent YoY drop in net profit for the first half of the year.
The company’s mid-year performance report for 2023 released on August 27 shows H1 revenue of 1.6 trillion yuan (US$220 billion), a 1.1-percent decline compared to the previous year. Net profit attributable to the parent company was 35.1 billion yuan, a 20-percent decrease.
This downturn stems from falling prices of petrochemical products, including crude oil.
Sinopec’s other business units, including marketing and distribution, refining, and chemicals, have faced varying impacts. While some sectors saw growth due to the domestic oil market recovery, others experienced declines. Despite these challenges, Sinopec remains optimistic with expectations of an economic rebound in the second half of the year.
On August 27, Sinopec declared to buy back A shares at a repurchase price not exceeding 9.3 yuan per share. As of August 25, the closing price of Sinopec’s shares was 6.16 yuan per share.
Sinopec’s report reflects ongoing efforts to reduce emissions and promote sustainability. Overall, the outlook for the company is optimistic, anticipating an upward trajectory in the latter part of the year.
