Caixin
Aug 30, 2021 08:34 PM
BUSINESS

Sinopec Swings Back to Profit on Rebound in Oil Prices

What’s new: China Petroleum & Chemical Corp. (600028.SH), or Sinopec, swung to a net profit of 39 billion yuan ($6 billion) in the first half of 2021, thanks to a rebound in oil prices as well as an increase in output and sales.

The state-owned energy giant recovered from a loss of 23 billion yuan a year ago when oil prices plunged and production was shut down due to the emerging Covid-19 pandemic. First-half revenue was up 22.1% to 1.26 trillion yuan, according to an earnings report (link in Chinese) published on the Shanghai Stock Exchange on Monday.

In the six months through June 30, Sinopec saw an operating profit of 39 billion yuan in its main refining business, up from a loss of 31.7 billion yuan a year ago. Total sales volume of refined oil products reached 109 million tons, up by 2% year-on-year, of which domestic sales volume accounted for 84 million tons, an increase of 8% year-on-year.

Oil and gas production reached 235 million barrels of oil equivalent, up 4.2%, it added.

The background: Sinopec, which is also listed in New York and Hong Kong, noted its results were boosted by demand for refined oil products and major chemicals amid a post-pandemic recovery. The refiner also said it took advantage of rising oil prices and raised operational efficiency to boost production and profit.

For the second half of the year, the company aims to produce 141 million barrels of crude oil and target domestic sales volume of its refined products at 86 million tons.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Kelsey Cheng (kelseycheng@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)

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