Sinopec shares under pressure after profit collapse – volatile oil prices also affect BP, Shell and ExxonMobil

• Sinopec shares under pressure after profit slump
• Weak oil prices in 2025 are a burden
• BP, Shell and ExxonMobil are also responding

The shares of the Chinese oil giant China Petroleum & Chemical Corp (Sinopec) are coming under increasing pressure. The reason for this is a significant drop in profits in the 2025 financial year, which is making investors sit up and take notice.

Weak oil prices and energy transition are a burden

According to the company’s balance sheet, Sinopec reported a 36.8 percent decline in net profit. The company attributes this primarily to weak petrochemical margins and increasing substitution by new energy sources. Additionally, low oil prices in 2025 weighed heavily on earnings, as lower revenues from refined products and overall tighter margins depressed profitability.

This development was poorly received on the stock market: Sinopec shares ultimately lost 4.62 percent to HKD 1.24 in trading in Hong Kong, while the overall market also weakened.

Declines in production and sales

The operational picture was also mixed. Refinery throughput fell slightly by 0.8 percent to 250.3 million tons. The decline was particularly noticeable in core products, as both gasoline and diesel production fell noticeably. This development reflects weaker demand overall.

At the same time, sales figures also developed negatively. Gasoline and diesel sales fell, while average prices for essential fuels fell. There was only a positive development in the kerosene business, as both production and sales increased moderately.

Slight stabilization – but risks remain high

Despite the difficult market environment, the company was able to slightly improve its refining margins. This was achieved, among other things, through stronger development in by-products such as sulfur and petroleum coke, which helped partially offset increased crude oil import costs and higher transportation expenses.

In the upstream business, Sinopec recorded a slight increase in production. Both crude oil production and natural gas production increased moderately, which gave the company at least some stability.

Nevertheless, the outlook remains tense. A drop in Brent oil prices of around 20 percent in 2025 weighed heavily on earnings. The background is increasing concerns about weaker global demand and a possible oversupply in 2026. The weakness was also clear in the chemicals segment, as sales fell noticeably due to falling prices.

Outlook: Focus on investments and gas business

Sinopec plans to invest 131.6 to 148.6 billion yuan in 2026. The focus is particularly on expanding oil and gas production, further developing natural gas projects and expanding the infrastructure for storage and transport.

While oil production is expected to remain largely stable, the company is increasingly focusing on growth in the gas business.

According to Sinopec figures: This is how shares in BP, Shell and ExxonMobil react

A look at international competitors such as BP, ExxonMobil and Shell shows that the pressure from volatile oil prices affects the entire industry. However, Western corporations are often more broadly positioned and benefit more from the global gas business and from liquid markets for LNG.

At the start of the week, the price development of competitors showed a mixed picture: BP’s shares ultimately lost around 4.29 percent to around 5.38 pounds in trading in London, while Shell shares fell by 2.02 percent to around 33.64 pounds. ExxonMobil shares, however, rose 0.93 percent to $161.15 in NYSE trading.

Claudia Stephan, Bettina Schneider, Martina Köhler, Benedict Kurschat, editorial team finanzen.net

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