China Petroleum & Chemical Corp, known as Sinopec, reported a 36.8% decline in 2025 net profit on Sunday, citing rising substitution by new energy sources, and weak petrochemical margins, according to the company's filing.
The world's largest oil refiner by capacity posted net income attributable to shareholders of 31.8 billion yuan ($4.62 billion), based on Chinese accounting standards, in a filing to the Shanghai stock exchange.
Refinery throughput fell 0.8% last year to 250.33 million metric tons, equivalent to 5 million barrels per day. The company forecast refinery throughput would remain stable at about 250 million tons in 2026.
Gasoline and diesel production fell 2.4% and 9.1%, respectively, to 62.61 million tons and 52.64 million tons, while kerosene production rose 7.3% year-on-year to 33.71 million tons.
Annual refining gross margin was 330 yuan ($47.93) per ton, up 27 yuan year-on-year, mainly due to sharply improved margins for refining by-products such as sulfur and petroleum coke, which offset the impact of high import crude premiums and freight costs.
The company's gasoline sales fell 2.5% year-on-year to 61.1 million tons, with the average price falling 7.7%, while diesel sales fell 9.1% to 51.2 million tons, and the average price fell 8% in 2025, Reuters reported.
Kerosene sales were 24.2 million tons, up 4% year-on-year, while the average price was down 9.9% from 2024.
In 2025, the company's domestic crude oil output reached 255.75 million barrels, up 0.7% year-on-year, while overseas crude oil output was 26.65 million barrels.
Sinopec expects domestic crude oil output to reach 255.6 million barrels in 2026, remaining largely stable, while overseas output is expected to drop to 25.31 million barrels.
Natural gas production rose 4% year-on-year to 1,456.6 billion cubic feet in 2025 and is expected to reach 1,471.7 billion cubic feet in 2026.
The company's ethylene production rose 13.5% year-on-year to 15.28 million tons in 2025.
In 2025, the company's external sales revenue from chemical products totaled 378.0 billion yuan, down 9.6% year-on-year, mainly because of lower product prices.
Sinopec's capital spending was 147.2 billion yuan in 2025 with 70.9 billion yuan on exploration and development.
Sinopec said it plans capital spending from 131.6 billion to 148.6 billion yuan this year, including 72.3 billion yuan for exploration and development, mainly for crude oil capacity expansion at Jiyang and Tahe, natural gas capacity projects in western and southern Sichuan, and oil and gas storage and transport facilities.
Sinopec's Hong Kong-listed shares have risen 0.21% year-to-date, outperforming a 1.38% drop in the Hang Seng Index , while lagging behind its peers PetroChina and CNOOC, which have posted 17.58% and 42.63% gains year-to-date, respectively.
