SunSirs: Sinopec's Profits Decline Due to Lower Crude Oil Prices

According to Business Society on October 30th, Sinopec (600028) released its Q3 2025 financial report on October 29th. The company's Q3 revenue was 704.389 billion RMB, a year-on-year decrease of 10.9%; net profit was 8.501 billion RMB, a year-on-year decrease of 0.5%. For the first three quarters of 2025, revenue was 2,113.441 billion RMB, a year-on-year decrease of 10.7%; net profit was 29.984 billion RMB, a year-on-year decrease of 32.2%. The decline in net profit this period was mainly due to the continued decline in crude oil and product prices, leading to inventory reduction and profit margins, a decrease in domestic gasoline and diesel sales, and a decrease in gross profit margins for products such as jet fuel and aromatics.

The article shows that Sinopec's year-on-year decline in net profit was mainly due to the continued decline in crude oil prices, leading to inventory reduction and a decrease in product gross profit margins. This indicates an imbalance between market supply and demand, with weak demand (such as declining gasoline and diesel sales) or oversupply putting significant downward pressure on crude oil spot prices. Based on the analysis of the commodity market, the downward trend in crude oil prices may continue, and there is a lack of supporting factors in the short term, hence it is considered a significantly bearish factor.

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