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Sinopec Shanghai Petrochemical's first-half profit falls

Sinopec Shanghai Petrochemical's first-half profit falls

Sinopec Shanghai Petrochemical Co reported a net loss for the first six months of 2025 due to lower demand in refining products and chemical products.

According to the report, Sinopec posted a net loss between January and June of 462.1 millions yuan (64.40million dollars). This compares to a profit of 27.9 millions yuan the previous year.

Net sales fell 10.66%, to 33.498 billion Yuan, while sales of chemicals and refining products were down 16.14% and 3.21 %, respectively.

The company stated that the market is still challenging with a strong supply and a weak demand. New-energy vehicles are increasing in penetration, which squeezes fuel demand. And the chemical sector remains at cyclical low.

A weaker market demand led to a 6.92 percent drop in the volume of refining products sold. The company reported that as crude prices fell, average selling prices for all segments were also lower than a year ago.

The refinery's throughput in the first six months was 6.33 million tons, a decrease of 4.93% on an annual basis.

The production of diesel and aviation fuel fell by 13.56%, respectively, and gasoline rose by 0.14%.

In the first half, output of ethylene (a building block in petrochemicals) increased by 24.34%, reaching 273,300 tonnes.

In the first half 2025, capital expenditures totaled 408 million Yuan. This was primarily allocated to the construction of the Shanghai Petrochemical Cogeneration Unit Clean-Efficiency Upgrade.

Sinopec Shanghai Petrochemical shares listed in Shanghai closed at 2,90 yuan, up 1.75 percent on the day. The stock has fallen 4.3% in the past year, but the SSE Composite Index is up 12.37%. $1 = 7.1757 Chinese Yuan Renminbi (Reporting and editing by Elaine Hardcastle in Beijing)

(source: Reuters)