Written by: Basant El-Farmawy
China's refining and petrochemical sectors saw significant profit growth during the first three months of the current year, as major companies revealed forecasts for record increases in net profits due to improved market conditions and better processing margins.
Record Growth for Hengli Petrochemical
Hengli Petrochemical announced strong forecasts for its financial performance, with net profit attributable to shareholders during the first three months of 2026 expected to reach approximately 102.56 billion yuan, an increase of 104.20% compared to the same period last year. Non-recurring net profit is also expected to reach 79.06 billion yuan, achieving a growth of 88.89%.
This positive performance is attributed to the improved supply and demand situation in the industry, and the stable operation of core units such as the 20 million-ton-per-year refining units and the 6 million-ton coal units, in addition to ethylene and PTA units. The notable recovery in processing price margins for the refining and PTA sectors has contributed to boosting the company's operating results.
Profit Surges for Other Chinese Companies
In a related context, other Chinese petrochemical companies showed exceptional growth; Rongsheng Petrochemical expected to achieve net profits between 7.8 billion and 8.2 billion yuan during the first three months, representing a massive increase of between 777.93% and 822.95% compared to the previous year, benefiting from improved overseas oil product markets.
For its part, Hengyi Petrochemical revealed forecasts for its net profit to grow by between 3318.59% and 3405.13%, reaching between 7.9 billion and 8.1 billion yuan. The company is benefiting from its expansions in Southeast Asia and improved profitability levels for chemical products such as benzene and PX.
