BEIJING - China Petroleum and Chemical Corporation (Sinopec), the country's largest oil refiner, announced late on Friday that its net profits rose 6.8 percent year on year in the first half of 2014.

Net profits during the term stood at 31.43 billion yuan ($5.1 billion), while its business revenues pared 4.2 percent year on year to 1.36 trillion yuan, the company said in a statement filed to the Shanghai Stock Exchange.

Sinopec attributed the decline in revenue to slower growth in demand for refined oil, as well as falling prices of chemical products due to fierce market competition.

In the first six months, the refiner produced 237 million barrels of oil and gas equivalent (boe), up 8 percent from a year ago. Of the total, crude oil output rose 7.5 percent to 178 million barrels, while natural gas output added 9.5 percent to 354.8 billion cubic feet.

The company's capital expenditures, or money spent on assets, amounted to 39.2 billion yuan in the first half, of which 20.7 billion yuan went into exploration and exploitation, according to the report.

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