BEIJING/SINGAPORE - China Petroleum & Chemical Corporation, known as Sinopec, reported a 9.9 per cent decline in 2023 net profit on March 24, weighed by falling oil and gas prices but supported by recovering fuel demand.

The world’s largest oil refiner by capacity posted net income of 60.5 billion yuan (S$11.4 billion), based on Chinese accounting standards, in a filing to the Shanghai stock exchange.

Sinopec faced a “complicated operating environment and intense competition” in 2023, it said in a statement to Reuters.

That was slightly worse than 2022, when the company recorded a 6.9 per cent decline in net income as Covid-19 curbs hit demand for fuel and chemicals.

Aviation fuel and petrol, however, led a post-pandemic demand recovery in 2023 as passenger air traffic surged and people drove more in China.

The state oil and gas major’s petrol sales rose 14.3 per cent and diesel 6.4 per cent. Aviation fuel sales expanded by 49.5 per cent.

The figures include sales in the domestic market as well as exports. Refiners in 2023 cashed in robust export profits with strong growth in overseas shipments of diesel and jet fuel.

Refinery throughput rose 6.3 per cent in 2023 to a record 257.52 million tonnes, or about 5.15 million barrels per day. The company forecast a rise to 260 million tonnes in 2024.

Sinopec expects its crude oil production to dip to 279.06 million barrels in 2024 from 280.23 million barrels in 2023, while natural gas rises to 1,380 billion cubic feet from 1,292 billion cubic feet. Its petrochemical business, however, remained lacklustre with sales of chemical fibres and plastics down 1.8 per cent.

Sinopec plans capital spending of 173 billion yuan in 2024 to cover key investments such as exploration and development, down from 176.8 billion yuan in 2023. REUTERS