Sinopec’s net profit dives 77.3% in H1
Sinopec, Asia’s largest oil refiner, announced on Friday that its net profits in the first half year plummeted 77.3% to RMB 8.255 billion (HK$9.5 billion) from RMB 36.38 billion in the same period last year, citing international accounting standards.
The company attributed the dive in net profits to significant refining losses caused by soaring international crude oil prices and tightly-controlled domestic oil product prices.
In the Jan.-Jun. period of 2008, operating profits plunged 86.5% to RMB 7.22 billion, while turnover hit RMB 72.44 billion, up 31.02% from the corresponding period last year, according to its interim financial report.
The country’s second-largest oil and gas producer said in a statement filed with the Hong Kong Stock Exchange that purchased crude oil, products and operating supplies and expenses amounted to RMB 674.07 billion, up 53.25% over the same period a year earlier, accounting for 88.58% of total operating expenses. Purchased crude oil expenses surged 70.4% to RMB 355.2 billion.
The company also expected its net profit in the Jan.-Sep. period would drop more than 50% year on year.
Sinopec’s H-shares dropped 3.68% to HK$7.59 on the last trading session.
Tags: Sinopec