China's Sinopec more than doubles Q3 profit on improved refining

29 October 2009 13:08  [Source: ICIS news]

SHANGHAI (ICIS news)--Sinopec Corp’s year-on-year net profit more than doubled in the third quarter to yuan (CNY) 16.6bn ($2.43bn) on improved refining operations, the company said on Thursday.

In the first nine months of the year, profit more than tripled to CNY49.8bn, Sinopec said in a filing to the Hong Kong Stock Exchange.

In accordance with International Financial Reporting Standards (IFRS), the company’s turnover, other operating revenues and other incomes amounted to CNY893.448bn for nthe first nine months, representing a decrease of 21.7% from the same period in 2008, the company said.

The exploration and production segment recorded an operating profit of CNY12.98bn for the first nine months, down 75.2% compared with the same period last year.

Meanwhile, output of crude oil and natural gas increased by 1.28% and 0.20% year on year to 31.73m tonnes and 61.17 hundred million cubic meters respectively, the filing said.

The refining segment recorded an operating profit of CNY21.56bn in the first three quarters, up significantly from an operating loss a year ago. Volume wise, processing of crude oil increased by 2.99% to 134.39m tonnes while the output of oil products climbed by 3.36% to 83.63m tonnes.

The marketing and distribution segment recorded an operating profit of CNY22.38bn in the first nine months, a decrease of 27.7% year on year, Sinopec said.

The company’s domestic distribution and retail volume of oil products dropped by 5.53% and 9.32% year on year to 89.57m tonnes and 57.67m tonnes respectively in the first three quarters, according to the filing.

The chemicals segment reported an operating profit of CNY14.31bn from January to September, a substantial increase from CNY0.376bn in the same period of last year.

In the chemicals segment, ethylene output dipped by 2.25% year on year to 4.74m tonnes in the first nine months, and the output of synthetic rubber also fell 1.99% to 0.64m tonnes. But synthetic resin bucked the trend to increase 1.05% to 7.41m tonnes.

The company’s capital expenditure for the first three quarters was CNY60.28bn.

Sinopec expected the profit for the full year to increase by over 50% year on year as the refining segment improved in line with the implementation of fuel reform, coupled with the demand upturn of chemical products.

Sinopec is an integrated energy and chemical company with upstream, midstream and downstream operations, listed in Hong Kong, New York, London and Shanghai.

($1 = CNY6.83)

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By: Judith Wang
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