Sinopec, also known as China Petroleum & Chemical Corp, reported a 9.9% decrease in net profit for 2023 due to declining oil and gas prices amidst a complex operating landscape. The company disclosed a net income of 60.5 billion yuan ($8.37 billion) under Chinese accounting standards, attributing the decline to factors such as intense competition and market challenges. Despite facing hurdles, Sinopec experienced a revival in fuel demand, particularly in aviation fuel and gasoline sectors, driven by increased air travel and domestic driving activities in China. The company’s refinery throughput reached a record high of 257.52 million metric tons in 2023, with plans for further growth this year. While crude oil production is expected to decrease slightly, natural gas output is projected to rise. However, Sinopec’s petrochemical business witnessed a downturn, with sales of chemical fibres and plastics showing a decline. The company aims to allocate 173 billion yuan for capital spending in 2024, focusing on strategic investments in exploration and development.
Sinopec’s 2023 Net Income Drops 9.9% in Challenging Environment