Sinopec's 1H Profit Spikes
Chinese state Sinopec August 26 reported a 52% year on year increase in net profit for the six-month period (1H2018) that ended June 30, 2018 thanks to higher oil and gas prices.
Company’s net profit rose to yuan 42.3bn ($6.2bn) in 1H2018 from yuan 27.9bn in the year ago period. Average realised crude oil price increased 22% year on year while realised gas price rose 7.2% year on year.
Sinopec’s crude production was 143.63mn barrels, down 1.6% on year and total gas production was 476.2bn ft3, up 5.3% compared with the same period of last year. Regasified LNG sales volume was 3.55bn m3, representing an increase of 75.2% over the same period of 2017 while LNG sales volume was 1.12mn metric tons, representing an increase of 90.7% over the same period of 2017. Sinopec has three receiving terminals in operation in China, at Qingdao, Tianjin and Beihai, each with a capacity of 3mn mt/yr.
“We will expand the value chain of our natural gas operation, actively exploring direct distribution to highend users and the vehicle and vessel gas market,” Sinopec said, adding it will advance key projects for capacity construction, enhance the efficiency and quality of developed gas fields, as well as promote synergy of production, supply, storage and marketing to push forward the development of natural gas. In 2H2018, Sinopec plans to produce 497.8bn ft3 of natural gas. The company also wants to push forward the construction and operation of natural gas stations and expand natural gas market for automobiles.