Sinopec reports third-quarter profit up about 64% as crude prices rise

Sinopec reported on Thursday that profit attributable to shareholders grew by about 63.6% from a year earlier to roughly $2 billion, while revenue increased 9.3%. Other outlets cited a 57% rise; the sources do not explain the difference, which may stem from a different accounting basis.

According to the reports, higher crude prices, stronger refining margins and inventory gains outweighed soft domestic demand for fuel and chemicals and lower refinery throughput. One report said the company did not benefit from the global margin peak to the full extent. Another noted that fuel demand declined over the first nine months.

Higher oil prices raise the value of inventories and lift refined product prices, which can flow directly into reported earnings. The sources also mention Chinese fuel export controls and PetroChina as part of the backdrop, without further detail. The result may support Sinopec's shares, but weak domestic consumption and possibly lower fourth-quarter refining margins could limit gains.