China's Sinopec Q3 profit rises 20% on higher refining margins

29 October 2013 17:59  [Source: ICIS news]

LONDON (ICIS)--Sinopec posted a net profit of yuan (CNY) 22.0bn ($3.6bn) in the third quarter, up by 20% from CNY18.3bn reported for the same period in 2012, backed by higher refining margins, China’s biggest refiner said on Tuesday.

Net profit in the three months ended 30 September was up 62% quarter on quarter, it added.

In the first nine months of the year, net profit grew 22% year on year to CNY52.3bn, as Sinopec’s turnover and other revenue rose 5.7% to CNY2,140bn.

Operating profit during the first three quarters was CNY78.3bn, up 15% over the same period last year.

In Sinopec’s refining segment during the first three quarters of 2013, refinery throughput was 174.19m tonnes, representing a growth of 6.4% over the same period last year.

“Benefiting from the government's implementation and improvement in the pricing mechanism for oil products, the operating profit of the refining segment swung into a profit of CNY6.66bn, as compared with an operating loss in the same period of 2012.

"Refining margins significantly improved to US$5.49/bbl, up 149.5% over the same period last year,” it added.

In the chemical segment, Sinopec said it had optimised its feedstock mix and cut feedstock costs by using a higher proportion of light feedstock.

In the first three quarters of 2013, ethylene production was 7.398m tonnes, representing an increase of 5.3% compared with the same period of 2012.

The chemicals segment recorded an operating loss of CNY59m in the first three quarters of 2013, representing an improvement of CNY233m compared with the same period of 2012.

“During this period, although facing the permissive market, the company optimised the feedstock and product mix which helped to improve the operational profit of the segment,” Sinopec said.

($1 = CNY6.09)


By: Franco Capaldo
+44 (0)20 8652 3214



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