China’s Sinopec, Asia’s largest refinery, posted record profits in the first half of this year thanks to strong oil prices.
The state-owned China Petroleum and Chemical Corporation (Sinopec) said its net profit rose 11% year on year in the first half to 44.5 billion yuan ($6.5 billion). He noted that its oil and gas production rose 2.9 percent and diesel production increased 7.4 percent despite the Korna shutdown in China, which led to lower domestic demand for fuel.
The refinery’s capital expenditure rose to 64.7 billion yuan in the first half of the year, compared to 57.9 billion yuan in the same period last year. The company aims for a significant increase in spending in the second half of the year by 133.4 billion yuan. Sinopec’s high profits follow in the footsteps of two state-owned oil giants PetroChina and Konoc, which have benefited from rising energy prices.
Source: El Iktisad
