Sinopec, subsidiary get $1.7bn refining subsidy
20 March 2008 01:45 [Source: ICIS news]
SINGAPORE (ICIS news)--Sinopec said late on Wednesday that it and subsidiary Shanghai Petrochemical have received much-awaited subsidies for the third consecutive year to make up for heavy refining losses stemming from a government cap on local prices since November.
However, analysts said the yuan (CNY) 12.3bn ($1.7bn) subsidy was still not enough to offset all losses at Sinopec,
“They need at least CNY40bn of subsidies to completely offset the losses expected for this year,” CLSA analyst Gordon Kwan said on Thursday.
Sinopec will split the subsidy into two parts – CNY4.9bn for 2007 and CNY7.4bn for the first quarter of 2008, it said in a statement.
Shanghai Petrochemical will record subsidies of CNY93.9m and CNY247.3m for 2007 and for the first quarter respectively.
Merrill Lynch said earlier that Sinopec could receive CNY16bn pre-tax subsidies in the first half of 2008, but this and a product price increase in the second half of 2008 would not guarantee earnings growth for the company.
Earlier this week, the
In an attempt to cool rapid inflation,
PetroChina, the country’s other energy major, posted an operating loss of CNY20.7bn in its refining division last year. The energy major has never received any refining subsidy as it imports much less crude than Sinopec.
($1=CNY7.06)
By: Florence Tan
+65 6780 4359
< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 2 November 2009)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Links posted in this story:
|
|
Related Articles
- 19 May 08 10:02 Sinopec, PetroChina plan Mideast ethylene plant
- 28 Apr 08 04:49 Sinopec posts 69% fall in Q1 profits
- 21 Apr 08 09:16 Sinopec forecasts bleak Q1 2008 on high crude
- 08 Apr 08 03:37 Shanghai Petrochemical to post losses in Q1
- 07 Apr 08 04:54 Sinopec, SK to build butadiene unit in Wuhan
- 07 Apr 08 04:11 Refining losses slow Sinopec's 2007 profit growth
- 28 Mar 08 09:03 Sinopec cuts aroms output to boost gasoline
- 25 Mar 08 03:15 Sinopec Kantons 2007 profit falls 1.4%
- 19 Mar 08 10:14 PetroChina triples chem op profit, takes refining hit
- 18 Mar 08 03:54 PetroChina, Sinopec deepen refining losses
- 11 Mar 08 03:38 Sinopec seeks VAT-waiver for exports
- 25 Feb 08 05:15 Shanghai Petchem Jan C2 output hits record high
- 25 Feb 08 04:07 Sinopec Feb MEG sees $294/t drop
Latest News
- 30 Nov 09 09:08 Malaysia’s Optimal Chemicals to restart NBA unit in December
- 30 Nov 09 09:03 South Korea’s OCI to restart PA unit in January
- 30 Nov 09 08:59 Taiwan's Formosa Plastics plans NBA plant turnaround in January
- 30 Nov 09 08:55 China’s Huafon Group to double polyurethane resin capacity
- 30 Nov 09 08:52 China’s Shanxi Fenghe runs melamine unit at 80% after restart
Barbara Ortner looks at the off-beat and unusual side of chemical industry life.
ICIS Chemicals Confidential