Sinopec first-quarter net income down 12% on lower oil prices

CHINA Petroleum & Chemical Corp reported an 11.8 per cent fall in first-quarter net income, hit by lower crude oil prices, though refined fuel sales improved after Beijing removed Covid-19 controls.

Asia’s top oil refiner, also known as Sinopec, reported 20.1 billion yuan (S$3.9 billion) net profit under Chinese accounting standards, versus 22.61 billion yuan a year earlier, in a filing to the Shanghai Stock Exchange on Thursday (Apr 27).

Refinery throughput slipped 3 per cent from a year ago to 62.24 million tonnes, or about 5.05 million barrels per day (bpd), with petrol output falling 8 per cent year on year and diesel down 0.9 per cent, the company said. Total refined fuel sales, however, were up 10 per cent in the first quarter, reflecting recovering demand for petrol and aviation fuel as more people travelled after the lifting of Covid controls in late 2022.

The company’s petrochemicals arm, however, remained in the doldrums with ethylene production down 7.2 per cent on the year. The division reported a 3.02 billion yuan loss before tax and interest.

Crude oil production edged up 0.6 per cent to 69.49 million barrels while natural gas output expanded by 5.3 per cent to 330.5 billion cubic feet.

Capital expenditure was 23.4 billion yuan, down from 25.38 billion yuan a year earlier. About 64 per cent of the spending was in the exploration and development sector including shale oil, which is more difficult to extract. REUTERS