China Petroleum & Chemical (SHA:600028, HKG:0386), or Sinopec, expects refined oil demand pressure to ease in late 2026, with earnings likely to beat forecasts, Nikkei Asia reported Monday.

The company said that while domestic fuel consumption may decline 8% year on year in the second half, the drop should narrow from the 8.6% contraction seen earlier this year, according to the report.

Following the effective closure of the Strait of Hormuz in March, Chair Hou Qijun said the refiner has pivoted to African and South American crude, diversified its product slate, and recalled 11 vessels previously stuck in the Gulf, Nikkei Asia wrote.

Sinopec plans to invest RMB 30 billion in new-energy businesses, aiming for green operations to contribute one-third of revenue by 2035, according to the report.

Shares of the company rose 1% in recent trade on the Shanghai and Hong Kong bourses.

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