China’s Sinopec first-half profit rises 12% after surge in energy prices

China’s biggest oil refiner saw its first-half profit rise 12% from a year ago, as a surge in global energy prices benefited upstream revenues even as it squeezed fuel sales. 

Sinopec’s preliminary net income was 26.6 billion yuan ($4 billion) for the six months through June, it said in an exchange filing on Sunday. The company, officially known as China Petroleum & Chemical Corp., earned 23.8 billion yuan in the first half of last year. 

Brent crude averaged about $87 a barrel from January through June, compared with around $71 in the same period in 2025. Prices touched a four-year high above $126 in late April, two months after the US and Israel began a military campaign against Iran. Prices remain volatile as the conflict, now in its sixth month, shows little sign of stopping.

The higher prices boosted revenue for the company’s well-head production, and also increased the value of its oil stored in tanks. 

But Sinopec also has a major refining business to produce fuels, chemicals and plastics. Higher oil prices mean higher feedstock costs, and the company wasn’t able to pass those along to consumers, as the government curbed fuel exports and capped domestic prices to shield the economy from inflation. 

Sinopec said it plans capital spending of 82.9 billion yuan to 99.9 billion yuan in the second half. It’s targeting production of 141.8 million barrels of crude oil and 746.3 billion cubic feet of natural gas.