En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Sinopec warns fuel sales will not keep up; plans to keep run rates stable

 

 

 




By Reuters Staff

BEIJING
Petroleumworld 08 29 2017

Chinese refining giant Sinopec warned it would keep its output rates stable even as it expects fuel sales to drop in the second half compared with January-June, a move that could add to a domestic glut of gasoline and diesel.

The country's largest refiner said it was standing by its planned run rate as it reported first-half results on Sunday showing its best six-month profit in years. The bumper earnings meant Sinopec is the latest in a line of Chinese state oil majors to reap the benefit of last year's crude price recovery.

Sinopec said it expected to sell 87.78 million tonnes of oil products in the second half of this year, down from 98.55 million tonnes in the first half. The company sees crude oil processing rates stable in the second half at 118 million tonnes, or 4.79 million barrels per day.

The outlook adds to market fears that major oil majors, as well as independents, may intensify price competition in order to secure market share in the retail market amid lower oil prices.

Sinopec, officially known as China Petroleum and Chemical Corp, reported a first-half net profit attributable to equity shareholders of 27.1 billion yuan ($4 billion), up 41 percent from the same period a year earlier, based on Chinese accounting standards. Profit rose 40 percent to 27.92 billion yuan during the period based on international accounting standards.

The company attributed the strong performance to higher prices and sales of downstream products compared to the year-earlier period. Revenue for the period rose 33 percent to 1.166 trillion yuan, based on Chinese accounting standards.

Sinopec also said it expects global oil prices to continue to fluctuate at low levels for the rest of this year, while structural adjustments in China's energy sector mean natural gas demand will continue to grow quickly.

The company plans to pump 148 million barrels of crude oil in the second half, up from 146 million barrels in the first six months - a significant change after multiple years of declining output.

Meanwhile, natural gas production may drop to 427.5 billion cubic meters from 452 billion cubic meters in the first half, Sinopec said.

$1 = 6.6465 Chinese yuan renminbi



Reporting by Elias Glenn, Josephine Mason and Meng Meng; Editing by Kenneth Maxwell from Reuters.

reuters
.com
08 28 2017

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 



Sept. 14-15,
Accra, Ghana

 

Nov 13-14 ;
Mexico City, Mexico

 

 

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld   / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.