China Petroleum & Chemical Corp (Sinopec) expects first-half net profit to rise more than 50 per cent after its earnings jumped 84.7 per cent in the first quarter.
Earnings were helped by much improved refining profits that more than offset lower oil production gains, the energy giant said.
First-quarter net profit was 11.19 billion yuan (HK$12.7 billion), up from 6.06 billion yuan a year earlier. It was in line with an 86.4 per cent mean rise estimated by five analysts polled by the South China Morning Post.
Turnover fell 31.1 per cent to 228.58 billion yuan from 332.01 billion yuan on the back of a 59.45 per cent year-on-year decline in average oil selling price to 1,599 yuan per tonne (about US$32 a barrel) from 3,943 yuan.
Oil output rose 0.61 per cent to 10.39 million tonnes or 24.5 per cent of its 42.4 million tonnes full-year target. Gas output slid 3.65 per cent to 1.98 billion cubic metres or 19.8 per cent of its full-year target, with the average selling price rising 4.88 per cent to 96 fen per cubic metre.
The price decline is sharper than that of Brent crude, which fell 46.8 per cent year on year in the first quarter to US$49.60 a barrel from US$93.16.
The refining segment swung to a 7.32 billion yuan operating profit from a 20.63 billion yuan loss in the year-earlier period, thanks to lower crude prices and better linkage of domestic fuel prices to overseas costs.
