Di Yi Cai Jing Zi Xun·2025-08-21 15:06Core Viewpoint - The significant decline in international crude oil prices and the drop in downstream petrochemical product prices have adversely affected China Petroleum & Chemical Corporation's (Sinopec) performance in the first half of the year [2]. Financial Performance - Sinopec reported a 10.6% year-on-year decrease in revenue to 1.41 trillion yuan, with net profit attributable to shareholders falling by 39.8% to 21.483 billion yuan [2]. - The primary reasons for the revenue and profit decline include fluctuating international oil prices, decreased domestic gasoline and diesel demand, and low chemical margins [2]. Oil Price and Demand Trends - The average spot price of Brent crude oil decreased by 14.7% year-on-year to 71.7 USD per barrel in the first half of the year [2]. - Domestic refined oil demand fell by 3.6%, with gasoline and diesel consumption decreasing by 4.6% and 4.3%, respectively [2]. Business Segment Performance - Sinopec's main business revenue dropped by 11% to 1.38 trillion yuan due to lower prices and sales volumes of petroleum and petrochemical products [2]. - Among the top ten petrochemical products sold by Sinopec, half experienced a year-on-year decline in sales volume, with crude oil, kerosene, and diesel showing the most significant drops [2]. Sales Revenue Breakdown - Revenue from the sale of petroleum products accounted for nearly 60% of total revenue, amounting to 807.9 billion yuan, a 12% decrease year-on-year [3]. - Sales revenue from key products such as gasoline, diesel, and kerosene fell by 13.1% to 669 billion yuan, still representing over 80% of the company's petroleum product sales [3]. Industry Outlook - The peak demand for refined oil in China has significant implications for industry chain enterprises, with gasoline demand expected to peak in 2023 and overall oil demand projected to peak by 2028 [3]. - Sinopec plans to reduce its annual capital expenditure by approximately 5%, focusing on the development of comprehensive energy stations and the transformation of existing sales networks [3]. Strategic Initiatives - Despite a 5.8% year-on-year decline in total refined oil sales volume, Sinopec is accelerating the development of terminal gas and charging networks [5]. - The company achieved a 61.8% year-on-year increase in liquefied natural gas (LNG) sales volume, reaching 1.934 million tons, with an average selling price rising by 1.7% to 3,811 yuan per ton [5]. - Sinopec made a strategic investment in CATL, planning to build at least 500 battery swap stations in collaboration with the company [5].