Sinopec posts 36.8% drop in 2025 net profit on weak petrochemical margins, new energy substitution

Published Sun, Mar 22, 2026 · 05:09 PM

[BEIJING] China Petroleum & Chemical Corp, known as Sinopec, reported a 36.8 per cent decline in 2025 net profit on Sunday (Mar 22), citing rising substitution by new energy sources and weak petrochemical margins, it said in a filing.

The world’s largest oil refiner by capacity posted a net profit of 31.8 billion yuan (S$5.9 billion), based on Chinese accounting standards, in a filing to the Shanghai stock exchange.

Refinery throughput fell 0.8 per cent to 250.33 million tonnes, equivalent to five million barrels per day. The company forecast refinery throughput would remain stable at about 250 million tonnes in 2026.

Petrol and diesel production fell 2.4 per cent and 9.1 per cent, respectively, to 62.61 million tonnes and 52.64 million tonnes. Kerosene production rose 7.3 per cent year on year to 33.71 million tonnes.

Annual refining gross margin was 330 yuan per tonne, up 27 yuan year on year. This was mainly due to sharply improved margins for refining by-products such as sulphur and petroleum coke, which offset the impact of high import crude premiums and freight costs.

The company’s petrol sales fell 2.5 per cent year on year to 61.1 million tonnes, with the average price falling 7.7 per cent. Diesel sales fell 9.1 per cent to 51.2 million tonnes, and the average price fell 8 per cent.

Kerosene sales came to 24.2 million tonnes, up 4 per cent year on year, while the average price was down 9.9 per cent from 2024.

In 2025, Sinopec’s domestic crude oil output reached 255.75 million barrels, up 0.7 per cent year on year; overseas crude oil output was 26.65 million barrels.

Sinopec expects domestic crude oil output to reach 255.6 million barrels in 2026, remaining largely stable, while overseas output is expected to drop to 25.31 million barrels.

Natural gas production rose 4 per cent year on year to 1.46 trillion cubic feet in 2025 and is expected to reach 1.47 trillion cubic feet in 2026.

The company’s ethylene production rose 13.5 per cent to 15.28 million tonnes in 2025.

In 2025, the company’s external sales revenue from chemical products totalled 378 billion yuan, down 9.6 per cent year on year; this was mainly because of lower product prices.

Sinopec’s capital spending was 147.2 billion yuan in 2025, with 70.9 billion yuan on exploration and development.

The company said it plans capital spending from 131.6 billion to 148.6 billion yuan this year, including 72.3 billion yuan for exploration and development, mainly for crude oil capacity expansion at Jiyang and Tahe, natural gas capacity projects in western and southern Sichuan, and oil and gas storage and transport facilities.

Sinopec’s Hong Kong-listed shares have risen 0.2 per cent in the year to date, outperforming a 1.4 per cent drop in the Hang Seng Index, while lagging behind its peers PetroChina and CNOOC, which have posted 17.6 per cent and 42.63 per cent gains, respectively. REUTERS