Sinopec profit declines 16pc

Sinopec's (0386) full-year profit tumbled 16 percent amid sluggish demand, with China's oil consumption likely nearing a peak.

The country's biggest refiner's net income fell to 49 billion yuan (HK$52.56 billion) in 2024 from 58.3 billion yuan a year earlier, the company said in a filing yesterday, citing international financial reporting standards. That compared with analysts' estimate for a profit of 56.4 billion yuan.

The slump reflects Sinopec's operational challenges, with nationwide oil usage falling last year as the government pushes refiners to produce less fuel and more petrochemicals, and the electric-vehicle boom weighs on fuel consumption.

The operating profit for Sinopec's refining business fell by 67 percent to 6.71 billion yuan.

Sinopec proposed a final cash dividend of 14 yuan per share, bringing the total payout for the year to 28.6 yuan per share.

Bloomberg and staff reporter