China Petroleum & Chemical Corp (Sinopec) has reported a 20.1% fall in interim net profit for the first half of this year, compared with the same period of 2022.
The interim net profit was declared at Y35.11 bill ($4.82 bill) in a stock exchange filing, on lower crude prices, despite higher refinery output and growth in fuel sales.
Revenue fell by 1.1% to Y1.59 trill, although Sinopec recorded an 18.5% increase in total domestic and overseas refined fuel sales of 116.6 mill tonnes.
China's fuel demand continued to recover in the second quarter after a 6.7% year-on-year increase in the first three months, with gasoline and aviation fuel leading the way, as people travelled more.
"The Chinese economy is seen extending its recovery. Domestic refined fuel demand is looking up and natural gas demand will maintain growth and that of chemical products will rebound gradually," Sinopec said in a statement.
Sinopec produced 139.68 mill barrels of crude oil during 1H23, up 0.02% year-on-year, while natural gas output grew by 7.6% to 660.88 bill cu ft (18.714 bill cu m).
The Chinese energy giant said it planned to spend Y104 bill during the second half of this year, 38.7% more than in the first six months, when oil and gas fields such as Tahe in Xinjiang and Weirong in Sichuan, as well as refinery expansion at Zhenhai saw investment.
