As the H1 2026 earnings preview season gets under way, more than 20 chemical companies had released their interim results by early July, with several industry giants reporting significant year-on-year net profit increases. Refining & petrochemicals, polyester, and polyurethanes chains stood out as the main drivers of this earnings improvement.
Wanhua Chemical Expects Over 60% Net Profit Growth in H1
Wanhua Chemical announced that it expects to record attributable net profit of RMB 9.8 billion to RMB 10.4 billion for the first half of 2026, representing growth of 60.05% to 69.85% year on year. The company attributed the gains to rising chemical product prices amid geopolitical factors and regional supply-demand shifts, as well as improved cost competitiveness in its petrochemicals business following the completion of feedstock diversification upgrades at its Phase I ethylene plant.
Refining & Petrochemicals and Fibres Stand Out
Hengyi Petrochemical expects H1 attributable net profit of RMB 5.5 billion to RMB 6.0 billion, up 2,326.31% to 2,546.88% year on year. The growth was driven by sustained high utilisation at its Brunei refining project and increased contributions from its domestic caprolactam–polyamide integrated facilities.
Oriental Energy expects attributable net profit of RMB 4.2 billion to RMB 5.0 billion in H1, up 987.39% to 1,194.51% year on year. The company cited price increases for certain petrochemical products and wider product spreads resulting from feedstock supply shifts as key factors boosting profitability.
Hengli Petrochemical expects H1 attributable net profit of approximately RMB 7.2 billion, up 136% year on year. Large-scale integrated refining & petrochemical operators, leveraging economies of scale and full industrial-chain advantages, were among the first to benefit from the sector's recovery.
Overseas Chemical Majors Also Report Recent Earnings Improvements
BASF reported preliminary adjusted EBITDA of €2.4 billion for the second quarter of 2026, above market expectations, prompting the company to raise its full-year earnings guidance. BASF said the improvement was driven by higher product prices, increased sales volumes, and better profitability across multiple business segments.
However, BASF simultaneously lowered its global economic and chemical production growth assumptions for 2026, pointing to significant uncertainties in the second half of the year, particularly due to geopolitical tensions and risks in energy and petrochemical feedstock transportation.
Covestro posted H1 sales of €6.729 billion and EBITDA of €669 million. Benefiting from higher product prices and the lagged pass-through of raw material costs, the company raised its 2026 EBITDA outlook to a level clearly above that of 2025.
Evonik expects adjusted EBITDA of €600 million to €650 million for Q2 2026, an increase of about 23% year on year. Driven by better-than-expected Q2 results, the company lifted its full-year 2026 adjusted EBITDA forecast from €1.7 billion–€2.0 billion to €2.0 billion–€2.2 billion.
Based on the earnings reports released so far, the chemical industry is emerging from its previous low-profitability phase, with several sub-sectors showing marked improvement. This round of earnings growth has been concentrated in refining & petrochemicals, polyurethanes, and chemical fibres, driven primarily by industrial-chain synergies, product spread recovery, and enhanced cost-control capabilities.
