Sinopec warns of 50% plus profit decline for '08

22 January 2009 14:54  [Source: ICIS news]

SHANGHAI (ICIS news)--State-owned refinery and petrochemical giant, Sinopec has warned that its 2008 profits could drop by more than 50% compared with the previous year, the company said in a filing to the Hong Kong Stock Exchange on Thursday.

The company’s 2007 profit was approximately yuan (CNY) 56.53bn ($8.27bn) based on international financial reporting standards, the filing stated.

The plunge in profits was attributed to the government control put on domestic fuel oil prices in the first half of last year and falling prices and demand for chemical products in the second half.

Specific financial and operational data will be unveiled in the company’s annual report, the filing stated.

Meanwhile, the company’s 2008 ethylene output declined by 3.75% from 2007 to 6.289m tonnes and synthetic fibres output dipped 11.39% to 1.260m tonnes, according to operational data on its website released today. Synthetic resin output was down 0.88% at 9.590 tonnes.

Both the ethylene and synthetic resins output data include 100% of the production from Sinopec’s cracker and downstream joint ventures with BASF and BP: YPC-BASF and Shanghai Secco.

($1 = CNY6.84)

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By: Judith Wang
+65 6780 4359

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