China's Major Oil Firms Post Record First-Quarter Profits

Major Chinese energy firms reported significant profit growth in the first quarter of 2026, fueled by rising global oil prices following conflict in Iran and the closure of the Strait of Hormuz. PetroChina posted a record net income of 48.33 billion yuan, noting a 54 percent profit jump in its refining, chemicals, and new materials sector despite a slight dip in overall revenue.

China Petroleum & Chemical Corporation (Sinopec) reported a 28 percent year-on-year increase in net income, totaling 17 billion yuan. While higher crude inventory values and stable domestic fuel sales drove these gains, Sinopec reduced refining throughput by 5 percent in March due to Middle East supply disruptions. The company also saw an 8 percent drop in ethylene output due to low margins.

China National Offshore Oil Corporation also reported higher-than-expected profits for the period. To maintain national energy security amid these disruptions, the Government of China halted fuel exports and directed major suppliers to maintain refining runs. However, the government also capped domestic fuel price increases twice during the quarter to protect consumers from the war's impact, which limited the profit margins for refiners.