Sinopec posts 24% jump in H1 net profit

Triggered by improved refining margins.

China Petroleum & Chemical Corporation or Sinopec said its net profit for the six months ended June 30 rose to US$4.95 billion from US$4.0 billion a year earlier. First-half revenue rose 5.2% to US$232 billion from US$221 billion.

Sinopec's refining business recorded an operating profit of US$35 million in the first half compared with an operating loss of US$3.02 billion year-on-year.

Sinopec plans to refine 120 million metric tons in the second half, up from 115 million tons in the first half.

Analysts expect Sinopec, Asia's largest refiner by capacity, to report a stronger result in the second half partly due to a higher contribution from overseas operations. It agreed in March to buy US$1.5 billion of oil and gas assets from its state-owned parent, Sinopec Group.

Chairman Fu Chengyu said Sinopec expects balanced supply and demand fundamentals in the global oil market and a steady growth in domestic demand for refined oil products and chemicals in the second half of the year.