By Kimberley Kao


China Petroleum & Chemical's net profit slumped in the third quarter, hurt by lower oil prices.

Net profit fell 52% to 8.54 billion yuan, equivalent to $1.20 billion, the Chinese energy major said Monday. Revenue declined 9.8% from a year earlier to 790.41 billion yuan.

The company, better known as Sinopec, attributed the weaker results to lower crude oil prices that pressured gross margin profits of petroleum and petrochemical products. Brent crude oil prices averaged $80.20 a barrel in the third quarter, down 7.6% from a year earlier year, it said.

Domestic refined oil consumption, affected by lower diesel demand, fell 1.0%, while demand for domestic natural gas continued to grow, with consumption rising 9.5%.

Oil prices tumbled during the quarter as fears over sluggish consumption in China, the world's second-largest economy, outweighed concerns about escalating tensions in the Middle East.

The International Energy Agency and the Organization of the Petroleum Exporting Countries in October both trimmed their 2024 forecasts for oil-demand growth as a rapid slowdown in Chinese consumption weighed on the global outlook.

"Chinese oil demand continues to undershoot expectations and is the principal drag on overall growth," the IEA said earlier this month, adding that the country is expected to account for around 20% of global gains both this year and next, compared with nearly 70% in 2023.


Write to Kimberley Kao at kimberley.kao@wsj.com


(END) Dow Jones Newswires

10-28-24 0631ET