Sinopec Flags Chemicals Spending Cut as Profit Pressure Mounts

Sinopec has set a flexible budget target for this year, flagging a potential capital expenditure cut of as much as 20%, after it reported a steeper-than-expected decline in profit for last year.

China’s biggest refiner wants to retain room to adjust spending depending on market conditions, it said in an exchange filing on Sunday, as it braces for rising headwinds from global volatility and weak demand. Most of the reduction is set to come in chemicals.