China’s Sinopec’s interim profit down 20.1% on lower oil prices By Reuters

© Reuters. The brand of China Petroleum & Chemical Company, or Sinopec, is displayed in the course of the LNG 2023 power commerce present in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren

(Reuters) – Chinese language refining big Sinopec (OTC:) Corp reported on Sunday a 20.1% fall in interim internet revenue for the primary half of the yr in contrast with the year-ago interval, to 35.11 billion yuan ($4.82 billion), on decrease crude costs regardless of larger refinery output and development in gasoline gross sales.

Sinopec, the world’s largest refiner by capability, reported revenues of 1.59 trillion yuan for the six months, down 1.1% from the yr earlier stage.

In the course of the interval, Sinopec processed a complete of 126.54 million metric tons of , up 4.8% versus a yr in the past, and its refined gasoline gross sales rose 18.5%, to 116.6 million tons, the corporate stated in a inventory submitting.

Home gasoline demand prolonged restoration within the second quarter after a 6.7% year-on-year enhance within the first three months, led by gasoline and aviation gasoline as individuals travelled extra.

Demand for diesel gasoline, nonetheless, remained beneath strain from an ailing property sector and as weakening merchandise exports curbed trucking.

Chinese language refiners general benefited from low-cost crude oil provides from Iran, Venezuela and Russia, as Western sanctions pressured these producers to promote oil at deep reductions to maintain income flowing.

Though state majors have shied away from Iranian and Venezuelan oil, Sinopec has been taking in Russian provides, merchants have stated.

Sinopec produced 139.68 million barrels of crude oil in the course of the six months, up 0.02% yr on yr, whereas its output gained 7.6% to 660.88 billion cubic ft.

The corporate’s refining margin was 354 yuan ($48.57) per ton within the first half of this yr, down 33.6% from a yr earlier, it stated.

Capital expenditure for the half-year got here in at 74.67 billion yuan, versus 64.65 billion yuan a yr earlier.

Sinopec has been stepping up exploring geologically more difficult reserves, just like the Bazhong tight fuel discipline and extra shale fuel acreage in Sichuan.

Its Hong Kong-listed shares have risen 14.4% year-to-date, outperforming which has fallen 10.9% in the course of the interval.

($1 = 7.2890 renminbi)