As reported by news sources, China Petroleum & Chemical Corp. (Sinopec) has declared that its 1Q17 profits are expected to more than double due to higher crude prices and stable demand.
Sinopec’s net income for the period is expected to jump by approximately 150% in comparison to the same period in 2016 (1Q16). The company also plans to increase spending by 44% this year after its annual profits rose for the first time in three years in 2016 as a result of improved refining margins and pipeline asset sales.
According to Bloomberg, with strong demand and better margins in its refining business, the company has offset low oil prices and reported net profit of 46.4 billion yuan (US$6.74 billion) for 2016, an increase of 44% on 2015. This included a 20.56 billion yuan gain from the sale of a 50% stake in a pipeline unit, Sinopec Sichuan-to-East China Gas Pipeline Co., in December.
The company also aims to boost capital expenditure to 110.2 billion yuan.
“[A] CAPEX increase underlines Sinopec’s confidence in the energy market recovery,” Bloomberg reported Gordon Kwan, Head of Asia-Pacific Energy Research at Nomura Holdings Inc., as saying. “We expect most international oil majors will follow suit as oil prices rebound and global energy demand continues to scale new heights.”
Read the article online at: https://www.worldpipelines.com/business-news/27032017/sinopecs-profits-on-the-up/