Profit Plummets! Sinopec’s H1 Net Profit Drops to 20.1 Billion, Falling Back to Three Years Ago—Industry Giant Tightens Belt

On the evening of July 31, Sinopec released its performance forecast for the first half of 2025. Investors and practitioners were left with only one feeling upon seeing the figures:A chill ran straight through my heart.

Profit plummets by 40%, even the giant can't withstand it?

The latest preview shows,Sinopec's net profit attributable to shareholders is expected to be between 20.1 billion to 21.6 billion yuan, a year-on-year decline of 39.5% to 43.7%.。

If you haven't compared, it was 35.7 billion yuan in the same period last year. In other words,Once making a billion in three days, this year it has turned into "earning half as much."。

Net profit excluding non-recurring items (the "real profit" after excluding various non-recurring projects) is also forecasted to be between 20 billion and 21.5 billion yuan, with a year-on-year decline of nearly 45%.

This is the ugliest semi-annual report in nearly three years.

The price of crude oil has dropped, chemical industry profits are low, and the market is extremely competitive.

Sinopec, this giant corporation, has openly admitted that "life is tough."

In the first half of this year, international crude oil prices plummeted sharply, competition in the petrochemical market became intense, chemical product prices remained sluggish, and profit margins were severely squeezed.

The company is desperately optimizing production and meticulously controlling costs, yet it still cannot prevent a "cliff" in profits.

This time, it's not just one particular sector facing issues; the entire industry chain is under immense pressure.

Production and sales have highlights, but they can't save the ugly financial report.

Let's take a look at the company's "report card":

The oil and gas equivalent production is still increasing.The year-on-year growth is 2%, with significant increases in the production of ethylene, synthetic resin, and synthetic rubber. Ethylene surged by 16.4%, synthetic resin increased by 12.8%, and rubber rose by 18.6%.

These numbers could have been applauded, but unfortunately the market is weak, prices cannot rise, and profits are being severely squeezed.

Crude oil processing volume has declined, down 5.3% year-on-year; sales of refined oil products also decreased by 3.4%; synthetic fiber production is also being reduced.

The logic of the industry is very simple: the more you produce, the less likely the market is to offer a good price, and you are more likely to be drawn into a price war.

Everyone wants to ask: How long will we have to endure these hard times of high production capacity and low profit margins?

Is it an industry turning point or a cyclical pit?

"Cliff-like decline in profits" is not a problem faced by Sinopec alone.

The global energy and chemical industries are experiencing a downward cycle, and the giants' "intensive self-improvement" is merely a means of self-preservation.

Will the market price drop again? Will oil prices suddenly rebound? Will more companies join the ranks of "cost reduction and efficiency improvement, tightening their belts" in the future?

This semi-annual report actually strips away everyone's "sense of security."

Even Sinopec has to slow down, what will happen to everyone else?

Reflections for the Industry

Everyone wants to live a good life, but the market only rewards those who can endure the most.

Do you think Sinopec's "cliff" in profits is the new normal or the bottom of a cycle? Are the companies around you doing well this year?

Waiting for the wind is useless; only by enduring this cold wave will you be qualified to witness the next wave of prosperity.

Welcome to leave a message and share your thoughts—what do you think about this report card?