Sinopec's Profit Drops 45% in 9M
Chinese state-run Sinopec on October 28 reported a 45% yr/yr drop in net profit for the nine months ending September 30 (9M), blaming the decline on lower oil and gas prices.
Sinopec’s net profit in 9M came in at yuan 23.5bn ($3.5bn), versus yuan 43.3bn in the year-ago period. The average realised oil price during 9M was down 30% yr/yr while the gas price slipped 14% yr/yr.
Sinopec’s oil production during 9M was down 1% yr/yr at 210.65mn barrels, while its gas output was 772.14bn ft3, down 0.2% yr/yr, the company said.
Despite incurring losses in the first two quarters of the year, Sinopec has reported a net profit during 9M thanks to a fourfold yr/yr increase in income in the three months ending September 30 (Q3), to 46.39bn ($6.92bn). This growth was thanks to proceeds from the spin-off of its pipeline assets.
“The company completed the transaction of oil and gas pipeline assets on September 30 and the contribution of asset appreciation to earnings was booked in the third quarter,” Sinopec said. Profit during Q3 was also boosted by a strong refining performance.