Private refiners post profits in H1

Chinese companies expected to report healthier margins in the second half

While China's refining industry is expected to suffer from the dual impact of the COVID-19 pandemic and plummeting oil prices, the sector is set to enjoy better times in the second half of this year as several major plants resume operations, industry insiders said.

In the first half of 2020, China's petroleum and chemical industry witnessed a 58.8 percent year-on-year profit slump to 141.6 billion yuan ($20.4 billion). Profit from the refining sector plunged more than any other segment, dropping 159 percent compared with the first half of 2019, said Fu Xianshen, vice-chairman of the China Petroleum and Chemical Industry Federation.

However, with effective measures to contain COVID-19 and an uptick in international oil prices, the private refinery sector is likely to embrace improved fortunes in the coming months.