Sinopec Posts 2.7% Rise in Net Profit for First Half as Oil Prices Surge
In a recent announcement, China's Sinopec (OTC:) revealed a 2.7% increase in net profit for the first half of the year, driven by a boost in oil prices. China Petroleum (OTC:) & Chemical Corp, also known as Sinopec, reported a net income of 37.1 billion yuan ($5.21 billion) for the period from January to June. Despite this positive news, the company experienced a 1.1% decrease in sales, reaching 1.58 trillion yuan.
During the first half, ethylene production, a crucial component for petrochemicals, declined by 5.5%. Sinopec's capital expenditure for the period totaled 55.9 billion yuan. Crude oil output rose by 0.6% to 140.53 million barrels, while production increased by 6% to 700.57 billion cubic feet.
The company processed 126.69 million metric tons of oil, equivalent to about 5.08 million barrels per day, marking a modest 0.1% increase compared to the same period last year. The growth rate in the first half slowed down to 1.7%, primarily due to higher crude prices and subdued domestic fuel demand.
This update from Sinopec highlights the impact of oil prices on the company's financial performance. Investors should closely monitor these developments as they can provide valuable insights into the energy sector and broader market trends.