China's Sinopec Q1 net profit down 35% on heavy refining loss

26 April 2012 15:56  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Sinopec posted a net profit of yuan (CNY) 13.4bn ($2.1bn) in the first quarter of 2012, a year-on-year decrease of 35.04%, the country’s biggest refiner said on Thursday.

Sinopec's operating profit in the three months ending on 31 March dropped by 28.99% to CNY21.8bn, while turnover increased by 14% year on year to CNY671.4bn, the company said in a statement.

Although its exploration and production business recorded significant growth in profits, its refining segment recorded serious operating losses, the statement said.

Its refining business incurred an operating loss of CNY9.2bn, because of a substantial rise in crude prices, and tight restrictions on prices of refined oil products in domestic markets, the statement said.

At the same time, its chemical segment posted a decrease in its operating profit due to price rises for chemical raw materials such as naphtha, and sluggish prices for chemical products in global markets, it said.

In the first quarter of this year, the company produced 2.5m tonnes of ethylene and 3.4m tonnes of synthetic resin, a decrease of 3.9% and 2.1% respectively compared with the same period last year. The chemicals segment's operating profit was CNY1.3bn in the first quarter, a decrease of 85.9% year on year.

Sinopec's marketing and distribution business posted an increase of 12.1% in its operating profit to CNY10.3bn in the first quarter, while its exploration and production segment posted a CNY19.6bn operating profit, up by 48.8% from the same period in 2011.

($1 = CNY6.31)

By: Fanny Zhang
+65 6780 4359

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