Sinopec gets Fitch downgrade on poor first half

01 September 2008 11:09  [Source: ICIS news]

SINGAPORE (ICIS news)--Rating agency Fitch has placed Sinopec on ratings watch negative due to the significant fall in first-half net profits reported last week, it said on Monday.

 

Sinopec recorded a drop of 86% and 77% in its operating profits and net profits respectively in the first half of 2008 due to China’s cap on refined oil prices, thus not being able to pass on any price increases to its customers, Fitch said.  

 

The ratings agency also highlighted concerns over Sinopec’s reliance on subsidies to offset its declining profitability, it said.

 

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By: Leon Toh
+65 6780 4359

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