Record Gains For China Oil On Higher Fuel Prices

Mainland oil giants have made record first-half profits helped by rising gas prices, despite an economy hobbled by Covid restrictions.

The world's largest refiner by capacity, Sinopec on Monday said it recorded an interim net income of US$6.3 billion, a 10.4 percent surge from the same period last year, as strong oil and gas prices outweighed weakened domestic fuel sales.

Oil major Cnooc announced on Thursday an interim net income rise of 116 percent to US$10.50 billion. It said oil prices have soared this year, with prices coming close to US$147 in March after Russia's attack on Ukraine in February spurred supply fears.

It also attributed the performance to efforts in increasing storage and production, as well as promoting major projects, scientific and technological innovations and green development.

Separately, PetroChina said profit in the first half jumped 55 percent to US$12 billion, boosted by an increase of its oil and gas output and higher energy prices, as Western sanctions on Russia intensified tight supply worries.

The results of the three oil giants have generally bucked economic trends, as the mainland economy narrowly escaped contraction in the three months to June, with Covid restrictions and a distressed property sector negatively affecting demand.

Profits at China's industrial firms also fell 1.1 percent in January-July from a year earlier, wiping out the 1.0 percent growth logged during the first six months, the National Bureau of Statistics said on Saturday.

Factory production and activities in major manufacturing hubs like Shenzhen and Tianjin were hit in the month as fresh Covid curbs were imposed. (Agencies)