2023-08-28 07:36:00
Moscow. August 28. INTERFAX.RU – Chinese oil and gas company China Petroleum & Chemical Corp. (Sinopec) in the first half of the year reduced its net profit by 19.4% in annual terms once morest the backdrop of lower prices for oil, petroleum products and chemical products.
The company’s net profit in the past half year was 36.12 billion yuan ($4.96 billion) compared to 44.84 billion yuan a year earlier, according to a press release.
In addition to the negative price dynamics, net income was negatively affected by reduced demand for some of the producer’s products, in particular naphtha and petroleum coke.
The company’s revenue decreased by 1.1% to 1.594 trillion yuan from 1.612 trillion yuan.
In the second half of the year, Sinopec forecasts an increase in domestic demand for petroleum products, natural gas and chemicals.
For the period from July to December, the producer plans to produce 141 million barrels of oil and 630.9 trillion cubic feet of natural gas compared to 139.7 million and 660.9 trillion, respectively, in the last half of the year.
The volume of oil refining is expected to increase by less than 1% and reach 127 million tons.
Sinopec will spend 104 billion yuan on capital expenditures in the current half of the year, up from 74.67 billion yuan in January-June, with 39% of the cost going to exploration and production, the report said.
The company’s shares are up 3% in trading on the Hong Kong Stock Exchange on Monday. Since the beginning of this year, their value has increased by 19.4%, while the Hang Seng index has decreased by 8.11% over the same period.
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