27 March 2013 06:51 [Source: ICIS news]
SINGAPORE (ICIS)--China's Sinopec Corp’s can expect to see its petrochemicals business results weaken this year on the back of the global economic downturn, ratings firm Moody’s said on Wednesday.
The petrochemical unit of the Chinese state-controlled refining major reported a marginal operating profit of yuan (CNY) 1.18bn ($190m) in 2012, reversing the CNY1.25bn loss it posted in the first half of 2012, Moody’s said in a statement.
“However, we expect Sinopec Corp's petrochemical business to be weak in 2013 because the weak global economy and import threats still exist,” said Simon Wong, a Moody's vice president and senior analyst.
Meanwhile, Sinopec Corp's refinery business is expected to come under less pressure this year than it did in the first half of last year, according to Moody’s.
“The Chinese government's reform of the refined oil price mechanism will provide more timely price adjustments for refined oil products, and also ensure that companies such as Sinopec Corp receive sufficient cost pass-through when the prices of international crude oil increase," Wong added.
Sinopec Corp could not be immediately reached for comment.
($1 = CNY6.21)
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