Center

Sinopec profits up despite refinery losses

(Xinhua)
Updated: 2006-04-29 09:33

The China Petroleum and Chemical Corporation (Sinopec) announced Friday a net profit rise of 1.4 percent in the first quarter over the same period last year -- despite losses of 7.88 billion yuan (US$985 million) in the refining sector.

The company's latest financial report said revenues from principal operations for the first quarter amounted to 222.7 billion yuan, an increase of 31.74 percent over the same period last year.

The net profit amounted to 9.13 billion yuan.

Listed in Hong Kong, New York, London and Shanghai, Sinopec is China's largest oil refinery and distributor.

The news sent Sinopec shares on the Shanghai A share market rising by 3.23 percent on Friday and closing at 6.07 yuan per share.

Losses in the refining sector were due to a combination of rising international crude prices and government-imposed price restrictions at home.

Sinopec produced nearly 9.8 million tons of crude oil, up 2.81 percent, and 1.8 billion cubic meters of natural gas, up 23.42 percent, in the first quarter.

Prices of crude oil rose by 46.33 percent and natural gas grew by 13.69 percent during this period and operating profits in exploration and production hit 16.6 billion yuan.

The company processed 35.17 million tons of crude oil, up 2.45 percent year on year. Its output of gasoline fell by 4.98 percent and kerosene by 8.33 percent from a year ago, while diesel production rose by 5.42 percent to 13.82 million tons.

Sinopec's output of ethylene was up 34.94 percent and synthetic resin 23.29 percent.