China’s largest oil company, China Petroleum & Chemical Corporation (Sinopec), posted a net profit of 35.11 billion yuan (about $4.82 billion) in the first half of 2022; this is 20.1% less than the same period in 2021. This is evidenced by the company’s financial statements. published On the Hong Kong Stock Exchange website.
Sinopec explains such a significant decline in net profit primarily by the fall in world oil prices and the decline in the profitability of a number of refined products. As a result, the company’s six-month operating income decreased by 1.1% to $218 billion, while earnings per share fell 19.3%.
Sinopec has also managed to increase the volume of key production indicators. Thus, oil refining reached 126.5 million tons with an increase of 4.8%. The sales of refined products used as fuel, on the other hand, increased by 18.5% to 116.6 million tons.
Sinopec states that in the first half of 2022, the Chinese economy continues to recover from the pandemic. This situation has led to a significant increase in domestic demand for energy resources. Especially in China, natural gas consumption increased by 6.7% annually. Consumption of basic petroleum products (gasoline, diesel fuel, kerosene) increased by 16.2%.
Sinopec increased its crude oil production by 0.02% to 139.68 million barrels in the January-June 2022 period compared to the same period of 2021. Natural gas production increased by 7.6 percent and reached 18.7 billion cubic meters.
In addition to its operating results, Sinopec announced its intention to repurchase its own shares for between $100 and $200 million. The Chinese company’s share price on the Hong Kong stock market has increased by 14.4% since the beginning of 2022.
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