By AIBING GUO
China Petroleum & Chemical Corp. posted a
better-than-expected 7.5% increase in first-half profit as refining
margin at Asias
biggest refiner widened and production climbed.
Net income was 32.5 billion yuan ($5.3 billion), or 0.28 yuan
a share, in the six months ended June 30 from 30.3 billion
yuan, or 0.25 yuan, a year earlier, the Beijing-based
company, known as Sinopec, said Friday in a filing to the
Shanghai stock exchange. The average of six analyst
estimates, compiled by Bloomberg, was a profit of 30
Sinopec is at the forefront of a China government push to
restructure state-controlled companies and allow markets a
bigger role in the allocation of resources. The company is
seeking to raise 100 billion yuan selling about a third of
its retail unit.
Chinas slower economic growth had a negative
impact on Sinopecs fuel-retailing business and it
somehow managed to balance the loss by achieving higher
margins in refining
, said Shi Yan, an
analyst at UOB Kay Hian in Shanghai. Profit should stay
flat in the second half unless Sinopec can register major
production increase in its shale gas unit.
Operating profit for the refining
business rose almost 46
times to 9.7 billion yuan in the period from a year earlier,
according to an English earnings statement to the Hong Kong
Shale gas production reached 3.2 million cubic meters a day
at Fuling, Chinas biggest shale-producing project
, in Southwest Chinas
Chongqing, it said.
Oil and gas output rose 8% to 237 million bbl of oil
equivalent, while total sales declined 4.2% to 1.36 trillion
yuan. Capital expenditure was 39.2 billion yuan in the first
half, with 20.7 billion yuan spent on exploration and
The average price for Brent, the benchmark for half of the
worlds crude, rose to $108.82/bbl in the period from
$107.88 a year ago.
The refiner is the first among Chinas three biggest oil
companies to report half-year results. PetroChina, the
countrys biggest oil and gas producer, and Cnooc,
Chinas biggest offshore oil and gas explorer, will both
report first-half earnings on Aug. 28.