On the evening of April 28th, China Petrochemical Corporation released its financial report for the first quarter of 2025, showing a double decline in operating income and net profit attributable to the parent company, with the net profit decreasing by nearly 30% year-on-year. According to the annual report, this vice-ministerial-level central enterprise has seen a continuous three-year downward trend in net profit, highlighting significant operational pressures faced by the company.
China Petrochemical Corporation (referred to as “Sinopec”) disclosed its quarterly report, achieving an operating income of 735.356 billion yuan in the first quarter, a 6.9% decrease year-on-year, and a net profit attributable to the parent company shareholders of 13.264 billion yuan, down by 27.6% year-on-year.
The decrease in revenue for Sinopec was mainly affected by fluctuations in international crude oil prices, weak demand for domestic refined oil products, and intensified competition in the chemical products market, as shown by financial data.
In addition to the decline in net profit, besides the contraction in revenue scale, the company’s cost control is also facing challenges. In the first quarter, the total of sales expenses, management expenses, and financial expenses increased, eroding some profit margins.
Despite Sinopec’s continued efforts to reduce costs and improve efficiency, optimize plant loads, and product structures, the overlay of unfavorable market factors makes its profit capabilities difficult to significantly improve in the short term.
In 2024, Sinopec’s operating income and net profit attributable to the parent company shareholders decreased by 4.3% and 16.8% respectively. The first quarter of 2025 continued this trend, indicating the sustained pressure on the company’s performance from the cyclical trough in the industry. The accelerated promotion of new energy alternatives and the release of additional chemical production capacity by the authorities further squeezed profit margins. According to the annual report, Sinopec’s net profit has declined for three consecutive years, highlighting the operational pressures faced by traditional petrochemical companies in the context of energy transformation.