Sinopec H1 Net Profit Plunges 44 Percent to 21.6 Billion Yuan Despite Output Growth Chemical Margins Remain Under Pressure

On July 31, Sinopec (600028) issued a profit alert, forecasting first-half 2025 net profit attributable to shareholders at 20.1–21.6 billion yuan—a sharp year-on-year drop of 39.5% to 43.7%. Core net profit after non-recurring items is expected in the 20.0–21.5 billion yuan range, marking a similar decline.

The company cited weak international crude prices, fierce downstream competition, and sluggish chemical margins as key reasons for the profit slump, despite strict cost controls and operational optimization.

Production highlights show mixed performance: oil and gas equivalent output climbed 2% to 262.81 million BOE, while crude throughput slipped 5.3% to 119.97 million tons. Ethylene production surged 16.4% to 7.563 million tons, synthetic resin output jumped 12.8%, and synthetic rubber soared 18.6%. By contrast, synthetic fiber production fell 5.1%, and domestic refined product sales dropped 3.4% to 87.05 million tons.

Sinopec faces a tough market environment in 2025, with sharply lower profits despite robust growth in key petrochemical products.