Chinese state-controlled oil frms might struggle to justify higher planned spending this year, as profts take a beating from downstream weaknesses. Sinopec’s profts fell by 27pc year on year to 16.7bn yuan ($2.39bn) in April-June, while PetroChina’s were up by 7pc, at Yn18.2bn. Their combined upstream profts rose by Yn24bn, but combined downstream profts fell by Yn33.6bn from the second quarter of last year. PetroChina’s downstream prof- its fell on the year by almost 100pc. Both companies have pledged hefty increases to capital expenditure (capex) this year, but are generating less cash from operating activities than a year earlier.
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