Sinopec’s full-year earnings declined last year as pandemic-induced lockdowns slashed domestic demand for oil and gas. Supply, in contrast, rose to a record level.
China Petroleum & Chemical Corp., as the company is formally known, recorded a net income of 66.2 billion yuan ($9.64 billion) for 2022. This falls shy of the 72 billion yuan net income posted the previous year.
In addition to reducing road and air traffic last year, Chinese Covid restrictions and quarantine guidelines also led to multiple factory shutdowns throughout the year, thereby limiting demand.
Oil and gas output rose by 1.9% in 2022, with fuel and gas prices soaring due to the global energy crisis. In 2022, the price of Brent crude averaged over 40% more than in previous years.
Sinopec announced that it is planning to add 165.8 billion yuan in capital expenditure this year, lower than the 189.1 billion yuan that it reportedly spent in 2022.