Sinopec swings into profit in Q1
Chinese state-run Sinopec on April 28 reported a net profit of 18.54bn yuan ($2.9bn) in the three months ending March 31 (Q1) thanks to higher oil and gas prices. It had booked a net loss of 19.15bn yuan in the same period of last year.
In the three-month period, the company’s production of oil and gas reached 117.03mn barrels of oil equivalent, up by 4.2% year/year. Gas output was up 16.8% while oil extraction was down 3.2%. Sinopec's realised oil price in Q1 was up 11.7% yr/yr, while its gas price rose 10%.
The company's capital expenditure in the three-month period was 23.09bn yuan. Upstream capital spending came to 9bn yuan, and mainly went towards the Fuling and Weirong gas capacity building projects, Shunbei, the Jiyang oil capacity-building projects and phase two of the Tianjin LNG and Shangdong LNG developments.