Sinopec Corp Reports Decline in Profit Amid Market Challenges

China Petroleum & Chemical Corporation Class H ( (SNPMF) ) has released its Q2 earnings. Here is a breakdown of the information China Petroleum & Chemical Corporation Class H presented to its investors.

China Petroleum & Chemical Corporation, also known as Sinopec Corp., is one of China’s largest integrated energy and chemical companies, involved in the exploration, production, and sale of petroleum and natural gas, as well as the production and distribution of petrochemical products and new energy solutions.

In its latest interim report for the first half of 2025, Sinopec Corp. reported a significant decline in profitability, with a 39.8% drop in net profit attributable to shareholders compared to the same period last year. Despite these challenges, the company maintained a strong operating cash flow and financial position, allowing it to declare an interim cash dividend for 2025.

Key financial metrics revealed a 10.6% decrease in operating income to RMB 1,409 billion and a 43.4% drop in profit before taxation. The company faced a challenging market environment with declining international crude oil prices and weak chemical margins, which impacted its financial performance. However, Sinopec Corp. managed to increase its net cash flow from operating activities by 44.4% to RMB 61,016 million, highlighting its robust cash management capabilities.

Looking ahead, Sinopec Corp. remains optimistic about the long-term prospects of China’s economy and the energy sector. The company plans to focus on increasing reserves, boosting production, and enhancing profitability through technological innovation and strategic investments. It aims to maintain its position as a leading energy service provider while navigating the challenges of fluctuating oil prices and evolving market demands.