Sinopec Profit Surges 64% as Oil Price Gains Offset Weak Demand

Revenues for the quarter climbed 9.3% to $115 billion, driven by realized crude oil prices reaching $81.92 per barrel, compared to $66.38 during the same period last year. While these figures reflect a robust nine-month performance—with profit rising 25.3%—the underlying operational data suggests significant headwinds. The company’s refinery throughput fell 10.2% over the first nine months of 2026, hampered by government-imposed export controls and a shift toward new energy alternatives.

Sinopec explicitly noted an 8.6% decline in domestic refined product consumption and a 9.4% drop in ethylene equivalent demand. This trend mirrors the experience of PetroChina, which recently reported a 21.6% profit increase despite concurrent declines in refinery runs and domestic diesel sales. Both state-owned giants are navigating a market where high oil prices provide a fiscal cushion, yet domestic economic factors continue to constrain their ability to match the refining margins seen by international supermajors.