Sinopec Reports 6.9% Drop in 2022 Net Profit as Domestic Demand Wanes

China: Sinopec's net profit dropped to 66.30 billion yuan ($9.65 billion) in 2022 due to the impacts of the pandemic, resulting in a 6.9% fall from last year. The lower demand for natural gas and oil products were major contributors to this decrease, according to a statement made by the company on Sunday.

In 2022, the revenue of a state-owned oil-and-gas major increased to CNY3.318 trillion, a growth of 20.4% from CNY2.741 trillion in 2021. For 2023, the company anticipates international crude oil prices to progress at medium and high levels based on changes in global supply and demand, geopolitics and inventory shifts.

China's economy is on the upswing and driving increased demand for natural gas, refined products, and chemicals. In response, the company has announced capital expenditure of CNY165.8 billion for 2023 - with CNY74.4 billion dedicated to exploration and production alone.

Sinopec expects to produce 280.23 million barrels of crude oil in 2023, with 29.03 million barrels coming from international sources and 1.291 trillion cubic feet of natural gas.