Sinopec's 2012 net profit falls; sets up HK joint venture in 2013

25 March 2013 06:21  [Source: ICIS news]

By Viola Pan

Sinopec 2012 net profit falls 11.4%; sets up HK joint venture in 2013SINGAPORE (ICIS)--Chinese petrochemical major Sinopec's net profit for the full fiscal year of 2012 decreased by 11.4% year on year to yuan (CNY) 63.5bn ($10.2bn) from a year earlier amid slowdowns in global economic growth, it said on Monday.

Revenues in 2012 grew by 11.2% to CNY2,786bn compared to the same period a year earlier, Sinopec said in a statement to the Shanghai Stock Exchange.

However, the operating income dropped by 12.9% to CNY87.9bn mainly because of margins cuts in the chemical segment, it said.

Operating profit for its chemicals segment slumped to CNY367.0m in 2012 compared with CNY25.3bn in 2011 due to plummeting chemical prices, while ethylene output was down by 4.5% at 9.45m tonnes, it added.

Meanwhile, Sinopec’s exploration and exploitation business segment operating profits in 2012 fell by 2.5% year on year to CNY69.5bn, it said.

Total production of oil and gas increased by 4.9% to 428m barrels of oil equivalent (boe), it added.

The company’s refining segment saw an operating loss of CNY11.9bn in 2012, compared with an operating loss of CNY37.6bn in the previous year, it said.

Its domestic sales of refined oil products rose by 6.7% year on year to 173m tonnes, it added.

Looking forward, the company plans to produce 46.4m tonnes of crude oil, 18.1bn cubic meters of natural gas, and 9.83m tonnes of ethylene in 2013, it said.

Furthermore, Sinopec has signed a frame agreement with its parent company China Petrochemical Corp to form a joint venture named Sinopec International Petroleum E&P Hongkong Overseas on 22 March, according to the company.

This is a 50:50 joint venture between two companies’ respective subsidiaries, Sinopec Corporation Hongkong International (SHI) and Tiptop Energy (Tiptop HK), it said.

The joint venture will focus on the acquisitions totalling $3bn in oil and gas assets held by China Petrochemical Corp in the countries such as Kazakhstan, Colombia and Russia.

($1 = CNY6.21)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Viola Pan
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