Oil and gas output hits record 257.66 million barrels of oil equivalent
Revenue slipped 1.1 to 1.58 trillion yuan due to lower diesel and petrochemical sales
H2 crude throughput seen nearly flat vs H1 at 5 mln bpd

BEIJING, Aug 26 Reuters China39;s Sinopec posted a 2.6 rise in net profit for the first half of the year as record oil and gas output compensated for falling domestic demand for refined fuel and petrochemicals.

China Petroleum Chemical Corp, as Sinopec is officially known, reported on Sunday a net income of 37.1 billion yuan 5.21 billion for January to June, according to a filing with the Shanghai stock exchange.

Sinopec, the world39;s largest oil refiner by capacity, said its oil and gas production hit a record high of 257.66 million barrels of oil equivalent, up 3.1 on the year, led by rising natural gas production.

Gas production was up 6 to 700.57 billion cubic feet, Sinopec previously reported, while crude oil output rose 0.6 on the year to 140.53 million barrels.

Refined product sales rose 2.1 to 119 million metric tons, although the domestic portion of those sales fell 2.5 to 90.14 million tons.

Revenue slipped 1.1 to 1.58 trillion yuan, dragged down by lower sales and prices of diesel and petrochemical products.

China diesel demand deterioration seems the most concerning, Citi analysts said in a note.

Diesel sales fell 13.8 and gasoline 0.2 from a year earlier while aviation fuel sales increased 7.5.

The company said it was growing its…