Sinopec Q1 net income jumps 25% on high oil prices

CHINA Petroleum & Chemical Corp reported 25 per cent surge in net income for the first quarter of 2022, a level last seen in the third quarter of 2020, thanks to elevated crude oil prices but weakening fuel demand as tight Covid controls weighed.

Asia’s top oil refiner, also known as Sinopec, posted 22.61 billion yuan (S$4.75 billion) net profit under Chinese accounting standards, versus 17.93 billion yuan a year earlier, according to a filing to the Shanghai Stock Exchange on Wednesday.

Refinery throughput edged up 2.7 per cent from a year ago to 64.19 million tonnes, or about 5.21 million barrels per day, with the growth capped by sliding fuel demand starting in March as authorities resumed lockdown to contain a flare-up of coronavirus.

“Global oil prices rose sharply in the first quarter, with average spot prices of Platts Brent crude oil up 66.3 per cent at $101.2 per barrel. While domestic demand for natural gas, refined oil and chemical products maintained growth,” Sinopec said in the filing.

Sales of total refined products dipped 1.8 per cent during January-March, versus a 6.8 per cent growth during the same year-ago period.

Its crude oil production reached 69.07 million barrels, up 1 per cent on the year, while natural gas output expanded 7.7% to 313.94 billion cubic feet.

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Capital spending was 25.38 billion yuan, versus 23 billion yuan a year earlier, with the increases mainly channelled to the exploration and development sector. The company has vowed to make more discoveries in geologically difficult shale oil and gas resources. REUTERS