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    Sinopec's H1 Profit Down


Profit was down 25% on year.

by: Shardul Sharma

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Sinopec's H1 Profit Down

Chinese state Sinopec’s net profit for the six months to June (H1) was yuan 31.34bn ($4.4bn), down 24.7% year on year, the company said August 25. Revenue rose 15.3% from a year ago to yuan 1.5 trillion.

Production of oil and gas in H1 was 226.63mn barrels of oil equivalent, up by 0.9% year on year. Domestic crude production increased 0.3% year on year to 124.05mn barrels while overseas crude production was 17.63mn barrels, down 11.6% year on year. Total gas production was 509.5bn ft3, up by 7.0% compared to the same period of last year, Sinopec said.

The company said it accelerated capacity building in Fuling, Weirong, West Sichuan Depression and Dongsheng gas fields with “production and distribution optimised to promote a coordinated growth along the value chain”.

Sinopec said it expects to show a slower growth rate in H2 in the midst of “a complex and uncertain global political and economic environment”. The company, however, said it will accelerate the capacity construction of key areas such as western Sichuan and Hangjinqi, and optimise the integrated system of natural gas production, supply, storage and marketing to “achieve rapid and efficient development” of the gas business. In H2 2019, Sinopec plans to produce 507bn ft3 of natural gas.