Energy
China’s Largest Oil Refiner Challenged by Weaker Economy
- Diesel demand was particularly poor due to property crisis
- State rivals like Cnooc less weighted to downstream activity
This article is for subscribers only.
Sinopec’s profit inched higher in the first half, after an improved performance from upstream operations offset the impact of a slowing Chinese economy and hefty declines in the company’s main businesses of processing and selling fuels.
Net income in the first six months rose 1.7% on year to 35.7 billion yuan ($5 billion) on revenue of 1.58 trillion yuan, a 1.1% decline, according to earnings on Sunday from the company formally known as China Petroleum and Chemical Corp.. But there were bigger swings at the operating profit level that give a better sense of the challenges facing China’s largest oil refiner.