• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day Cheaper prices due to renewables - forget it
  • 1 day e-cars not selling
  • 2 days If hydrogen is the answer, you're asking the wrong question
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 2 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.

Chinese Refining Giant Sees Profits Decline 20% As Fuel Demand Disappoints

China Petroleum & Chemical Corporation, or Sinopec, reported this weekend a 20.1% decline in its net profit for the first half of 2023, amid lower international crude oil prices and weaker-than-expected fuel demand recovery in China.

The net profit of Sinopec, the world’s top refiner by capacity, fell to $4.82 billion (35.11 billion Chinese yuan) from January to June, compared with a profit of $6 billion (43.9 billion yuan) for the same period of 2022.

The average spot price of Brent was $79.8 per barrel in the first half of this year, down by 25.8% year over year, the Chinese giant said.

Sinopec acknowledged that its refining division was challenged by the lower crude oil prices and narrowed profit margins of certain refined oil products.

Refining output was nevertheless higher than in the first half of 2022 when Covid-related restrictions in China were still in place and were dragging down demand for petroleum products. In the first half of 2023, Sinopec processed 126.54 million tons of crude oil, up by 4.8% year-on-year, and produced 76.07 million tons of refined oil products, up by 10.3%, with kerosene output soaring by 63.5% year-on-year.

In the chemicals division, Sinopec flagged weak domestic demand and reported an operating loss for the January-June period compared to a small profit for the same period of 2022.

Other Chinese firms also reported lower earnings this year.

CNOOC Ltd, China’s state-held oil and gas giant, has reported a decline of 11.3% year over year in its net profit for the first half of 2023, as lower oil prices weighed on profitability.


CNOOC posted $8.7 billion (63.8 billion yuan) in net income between January and June, down from the same period last year as lower commodity prices weighed on realized prices at all major companies during the second quarter of 2023 and the first half of 2023.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News