China's three biggest state-owned oil companies all saw earnings decline in the first half of 2025, with Sinopec taking the heaviest hit.
- Sinopec feels the squeeze: Its downstream-heavy model left it exposed to weak fuel and chemical demand. Refining profit plunged 52.5% YoY, chemical losses deepened, and sales profit fell 42.3%, making it the weakest performer of the three.
- CNOOC dragged by oil slump: With more than 80% of revenue tied to upstream exploration and production, the company struggled to offset a 15% drop in Brent crude, halting growth in what had been its most resilient business.
- Capex cuts signal caution: PetroChina and Sinopec both scaled back 2025 investment. Sinopec trimmed its budget by an extra 5% from the initial plan - 11% below 2024 levels -highlighting a cautious stance in a weaker market.
- Pivot to growth sectors: Even as they tighten traditional spending, PetroChina and Sinopec are ramping up investment in renewables and high-end chemicals. PetroChina is leaning into renewable power and specialty chemical materials, while Sinopec focuses on integrated refueling network expansion and refinery upgrades.
The full report dives deeper into:
- Segment-by-segment performance and drivers
- Refined product yields and procurement trends
- Capex review and outlook
- H1 results of leading private refining and chemical complexes
The above content is the major conclusions and highlights extracted from China (Energy Transition) Policy Perspective. To get detailed full text, send an email to glconsulting@mysteel.com.
