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Sinopec Kantons gains on cost cuts

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SCMP Reporter

Cost controls helped boost red-chip Sinopec Kantons Holdings' net profit despite a first-half turnover slump.

The crude oil trader from Guangdong registered a 10 per cent profit lift, to HK$111.34 million in the half.

International oil price fluctuation drove down turnover by 33 per cent, to HK$3.23 billion, managing director Zhai Xudong said.

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'Global crude oil prices fluctuated greatly between the rock-bottom price of US$20 a barrel and the ceiling of about US$30,' Mr Zhai said.

He also attributed the lower turnover to Guangdong's high oil inventory as well as the global economic slowdown.

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Operating profit fell 9 per cent year on year to HK$169.62 million.

Crude oil and petrochemical trading sales were down 37 per cent and 32 per cent respectively, year on year.

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