Sinopec Oilfield Service Corp

Energy Transition & Power Demand

Sinopec chairman launches overhaul to revive world's largest refiner

Sinopec Chairman Hou Qijun has launched a sweeping overhaul of the world's largest oil refiner as it confronts falling fuel demand, petrochemical overcapacity, and oil-supply disruptions from the Iran war. Appointed a year ago, Hou has reorganized the company into four profit centers covering oil, gas and new energy, refining and chemicals, finance and strategic new business, and global trading with marketing, and he outlined the plan in unusually blunt language in a July SASAC magazine article. Sinopec reported a 19% rise in first-half 2026 net profit on Sunday, but its fuel sales have dropped to 2017 levels and it faces an uphill battle to maintain domestic market share. Hou said at an earnings briefing that half of new cars no longer need fuel, so the company must shift to chemical materials and new energy, and it plans to allocate about 20% of capital spending, or more than 30 billion yuan a year, to new energy and new materials from 2026 to 2030. He also targeted completion of more than 30 projects by 2030, including shale oil, sustainable aviation fuel, and refining cost cuts, while facing fierce competition from Wanhua Chemical and Satellite Chemical in higher-value petrochemicals.

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Energy Transition & Power Demand ▼Critical Materials & Supply Chain

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Oil Declines With US Economic Isolation Plan for Iran in Focus

Oil dropped after two weeks of gains, with the market waiting to see the US economic isolation plan for Iran due to be released later Monday. Brent fell to around $93 a barrel, after adding around 13% over the past two weeks, while West Texas Intermediate was near $86. Treasury Secretary Scott Bessent is set to unveil details of the plan in a press conference, and sought to ratchet up pressure on US allies to join the effort in an interview with CNBC. Oil has rallied more than 50% this year, with the US-Iran war now in its sixth month choking global supplies of crude and refined products. China's top refiner Sinopec said gasoline consumption fell almost 8% and diesel use 12% in the first half of the year because of high prices and increased use of electric vehicles.

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Energy Transition & Power Demand ▲Electrification & Mobility ▲

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Sinopec Oilfield Service first-half 2026 net profit 510 million yuan, up 3.51% year on year

Sinopec Oilfield Service released its 2026 interim report. Net profit attributable to the parent company was 510 million yuan, up 3.51% from the same period last year, marking a fourth consecutive year of growth. Total operating revenue was 37.664 billion yuan, up 1.66% year on year, achieving a second straight year of growth. Net cash inflow from operating activities was 2.937 billion yuan, up 36.55% year on year. The company's latest asset-liability ratio was 87.08%, down 1.01 percentage points from a year earlier. Gross margin was 8.49%, rising for a fifth consecutive year. Diluted earnings per share were 0.03 yuan, up 3.85% year on year. The company had 183,700 shareholders, and the top ten shareholders held 16.355 billion shares, accounting for 86.27% of total share capital.

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Sinopec Oilfield Service first-half net profit attributable to parent at 510 million yuan, up 3.5% year on year

Sinopec Oilfield Service released its 2026 half-year report. First-half net profit attributable to the parent was 510 million yuan, up 3.5% year on year. Operating revenue was 37.66 billion yuan, up 1.7% year on year. Net profit attributable to the parent after deducting non-recurring items was 469 million yuan, up 10.7% year on year. Net operating cash flow was 2.937 billion yuan, up 36.6% year on year. Second-quarter net profit attributable to the parent was 305 million yuan, up 11.3% year on year. International business revenue rose 20.9% year on year, and engineering construction services achieved significant growth.

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Sinopec Oilfield Service to acquire 50% stake in Mexico's DS and invest up to 212 million US dollars more

Sinopec Oilfield Service announced that its wholly owned subsidiary Sinopec International Petroleum Service Corporation and its Mexican subsidiary plan to acquire, for 4 million US dollars, the 50% stake in Mexico's DS held by DIAVAZ and the 0.01% interest in the EBANO project held by D&S. After the acquisition, Sinopec International Petroleum Service Corporation will hold 99% of Mexico's DS and indirectly obtain a 55% interest in the EBANO project through that company. At the same time, the company plans to invest up to 212 million US dollars more in the EBANO project. This transaction still needs to be submitted to the shareholders' meeting for approval and must satisfy multiple closing conditions.

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Sinopec Oilfield Service Wins Bid for 1.772 Billion Yuan Natural Gas Pipeline Construction Project

Sinopec Oilfield Service's wholly-owned subsidiary Sinopec Petroleum Engineering Construction Co., Ltd. has won the bid for the first section of the Heihe-Daqing and Daqing-Changling natural gas pipeline construction general contracting project, with a bid amount of 1.772 billion yuan, accounting for approximately 2.2% of the company's 2025 operating revenue. The main content of the project is the construction of a natural gas pipeline with a total length of about 279 kilometers, with a construction period of 710 days. Currently, the relevant parties have not yet formally signed the contract, and the project still faces uncertainties.

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