China Petroleum & Chemical (386) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB1,436.6 billion, up 2.0% year-over-year, with operating profit of RMB37.2 billion, up 11.3% year-over-year, and net profit attributable to shareholders up 11.9% to RMB26.6 billion.

• EBIT increased 12.1% year-over-year, and profit attributable to shareholders rose 11.9% year-over-year.

• The company maintained stable operations amid volatile crude oil prices and weak domestic demand for refined oil and chemicals, improving margins in refining and jet fuel.

• Interim dividend of RMB0.105 per share was approved, with a payout ratio of 49.5%, and a new share buyback was initiated.

• Continued investment in high-quality projects, green transition, and digital intelligence initiatives.

Financial highlights

• Operating income was RMB1,436.6 billion (+2.0% YoY); operating profit RMB37.2 billion (+11.3% YoY); net profit attributable to shareholders RMB26.6 billion (+11.9% YoY).

• Basic and diluted EPS was RMB0.220, up 12.2% year-over-year.

• Net cash from operating activities grew 2.4% to RMB62.5 billion; cash and equivalents rose 23.1% to RMB185.8 billion.

• Total assets reached RMB2,199.4 billion (+2.0% from end-2025).

Outlook and guidance

• Stable economic growth is expected in China for 2H 2026, with rising domestic natural gas demand, weak chemical demand, and refined oil demand pressured by alternative energy.

• Production targets for 2H 2026 include 141.83 million barrels crude oil, 746.26 billion cubic feet natural gas, 113 million tonnes crude oil processed, and 77.68 million tonnes refined oil products sold domestically.

• Planned capex for H2 is RMB82.9–99.9 billion, focusing on E&P, refining, chemicals, and digital intelligence.