Sinopec's 2010 profit up 13.7% on demand and price increases

28 March 2011 04:14  [Source: ICIS news]

GUANGZHOU (ICIS)--China’s Sinopec has posted a 13.7% increase in its net profit for 2010 to yuan (CNY) 71.8bn ($10.9bn) on rising product demand and prices, and expansion of its operations, the energy giant announced on Sunday.

Its total revenue increased 42.2% year on year to CNY1,913bn, while operating profits rose 15.8% to CNY105.0bn in 2010, the company said in a statement.

Three of its four business segments registered an increase in operating profit, with the refining segment as the only exception, as spikes in crude prices exceeded that of refined products.

Its upstream exploration and production segment recorded an operating profit of CNY47.15bn for 2010, a hefty year-on-year increase of 97.3%.

Sinopec produced 328m barrels of crude oil last year, flat when compared with 2009, while production of natural gas rose 47.6% year on year to 441.4bn cubic feet in 2010.

The average transacted selling prices of crude oil and natural gas were CNY3,406/tonne and CNY1,174 per thousand cbm, respectively, representing year-on-year increases of 38.2% and 22.4%.

Its chemical segment posted an operating profit of CNY15.0bn for 2010, a gain of 8.9% year on year. Ethylene production reached 9.1m tonnes in the year, up 34.9% from 2009.

Operating profit for the marketing and distribution segment increased by 1.5% over 2009 to CNY30.8bn, while the refining segment recorded an operating profit of CNY15.9bn, down by 42.4% from the year before.

The company processed 211m tonnes of crude oil in 2010, up 13.2% from the previous year, and produced 124m tonnes of refined oil products, an increase of 9.4% year on year. Meanwhile, it sold 140m tonnes of refined oil products in the domestic market in 2010, up 13.3% year on year.

Production of major chemical products (unit: thousand tonnes)
	2010	2009	Change (%)
Ethylene	9,059	6,713	34.9
Synthetic resin	12,949	10,287	25.9
Synthetic rubber	967	884	9.4
Synthetic fibre monomer and polymer	8,864	7,798	13.7
Synthetic fibre	1,393	1,302	7.0
Urea	1,223	1,752	(30.2)
Source: Sinopec

Judith Wang contributed to this article

($1 = CNY6.56)

For more on Sinopec, visit ICIS company intelligence

By: Fanny Zhang
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