Sinopec Reports 28% Drop in Q1 Profit Amid Low Oil Prices

Sinopec, China's largest oil and gas company, reported a first-quarter net profit decline of approximately 28%, primarily due to falling international crude oil prices and reduced domestic demand for refined fuels. The company experienced a 4% decrease in national refined fuel demand and a 7.1% drop in total sales volume, with lower gasoline and diesel consumption attributed to economic challenges and competition from electrification. Operating revenue was largely flat, but the chemical division registered a significant loss amid persistently low margins, while natural gas production increased and crude oil output fell slightly. Capital expenditure was reduced, with a majority directed toward upstream oil and gas projects. Despite these challenges, Sinopec increased ethylene production after two years of decline and maintained its focus on strategic investments to navigate market volatility. The results reflect broader pressures facing global energy companies as they contend with shifting market dynamics and the transition toward cleaner energy sources.