China Petroleum's Earnings Almost Double

The integrated energy and chemical company's fourth quarter earnings improved despite a drop in Marketing and Distribution sales.
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Vertically integrated energy and chemical company

China Petroleum & Chemical Corp.

, also known as Sinopec Corp.

(SNP) - Get Report

, reported on March 30, 2009 that its Q4 FY08 earnings almost doubled to Renminbi (RMB) 13.35 billion from RMB6.75 billion in the prior year's quarter.

The company's turnover, including other operating revenue and income, for the latest fourth quarter declined 8.3% to RMB309.94 billion from RMB337.86 billion in the year-ago quarter. Looking at the company's business segments, crude oil production in the Exploration and Production segment increased marginally to 74.36 million barrels (Bbls) from 73.80 million Bbls. However, the Marketing and Distribution segment's domestic sales of refined oil products declined 8.6% to 28.17 million tons from 30.82 million tons a year ago. The Chemicals segment's output of synthetic resins dropped 6.0% to 2.30 million tons from 2.44 million tons in Q4 FY07.

Recently, China Petroleum & Chemical announced that Taian Lurun Co. Ltd and its subsidiary, Shandong Lurun Hongtai Petroleum and Chemical Co. Ltd., plan to sell a 100.0% stake in a Taian-based cement production company and a 100.0% stake in a Shandong-based petrochemical company.

For FY08, turnover, including other operating revenue and income, soared 24.2% to RMB1.50 trillion from RMB1.21 trillion in the previous year. Net profit attributable to equity shareholders plunged 47.3% to RMB29.77 billion or RMB0.34 per share from RMB56.53 billion or RMB0.65 per share in FY07.

Looking forward to FY09, crude oil production is expected to be 301.00 million bbls, representing an increase of 1.3% over FY08 levels. Furthermore, the company estimates capital expenditure to be RMB111.80 billion.