Sinopec Corp.(SH:600028) 光大证券研究·2025-08-02 00:03Core Viewpoint - The company anticipates a significant decline in net profit for the first half of 2025, with projections indicating a decrease of 39.5% to 43.7% year-on-year, primarily due to falling oil prices and low refining margins [4][5]. Group 1: Performance Overview - In Q2 2025, the company expects a net profit of 68-83 billion yuan, reflecting a year-on-year decline of 52.1% to 60.7% and a quarter-on-quarter decrease of 37.2% to 48.5% [4][5]. - The average Brent crude oil price in Q2 2025 is projected to be 66.71 USD per barrel, down 21.5% year-on-year and 11.0% quarter-on-quarter, impacting overall profitability [5]. Group 2: Business Analysis - The company has strengthened its upstream operations, achieving a 2.0% increase in oil and gas equivalent production in H1 2025, with domestic crude oil production at 126.73 million barrels (up 0.2% year-on-year) and natural gas production at 20.9 billion cubic meters (up 5.1% year-on-year) [6]. - In refining, the company processed 111.97 million tons of crude oil in H1 2025, a decrease of 5.3% year-on-year, with gasoline and diesel production also declining [6][7]. - The company is focusing on optimizing its product structure and increasing the production of high-value products, with ethylene production rising by 16.4% year-on-year to 7.56 million tons [6][7]. Group 3: Strategic Initiatives - The company plans to enhance its operational efficiency and pursue a transformation in its traditional industries during the 14th Five-Year Plan period, with a capital expenditure plan of 76.7 billion yuan for upstream operations in 2025 [8]. - The company aims to transition towards high-value, differentiated products in the refining sector and is accelerating its transformation into a comprehensive energy service provider [8]. - The company is also focusing on expanding its chemical and new materials production capacity, with plans for large-scale ethylene projects to improve profitability in the refining sector [8].