Sinopec Reports 12 Percent Profit Rise to 26.6 Billion Yuan

China Petroleum & Chemical Corp. reported a 12 percent increase in net income for the first half of 2026, reaching 26.6 billion yuan ($4 billion) for the period ending in June. The growth was primarily driven by a surge in global energy prices, which increased the value of stored oil and boosted upstream well-head production revenue.

Brent crude averaged approximately $87 per barrel during the first half of the year, up from $71 in the first half of 2025. Prices peaked above $126 in late April following military campaigns by the United States and Israel against Iran.

While upstream sectors gained, the company's refining business struggled with higher feedstock costs. The Government of China prevented Sinopec from passing these costs to consumers by capping domestic prices and restricting fuel exports to combat inflation.

For the second half of 2026, the company plans capital spending between 82.9 billion yuan and 99.9 billion yuan. Its production targets include 141.8 million barrels of crude oil and 746.3 billion cubic feet of natural gas.