BEIJING ( TheStreet) -- China Petroleum & Chemical Corp. ( SNP), also known as Sinopec, said Sunday that its net profit for 2011 rose 2% from the previous year.
Although full-year revenue surged 31%, overall profits were dampened by a sharp operating loss in the company's refining business.
Sinopec attributed the refining losses to surging global crude oil prices and continuing price controls on refined oil products in the Chinese market. > > Bull or Bear? Vote in Our Poll In a news release, Sinopec said full-year revenue rose 31% to 2.5 trillion yuan, while 2011 net profit and earnings per share rose 2%, to 73.2 billion yuan and 0.85 yuan, respectively. For the fourth quarter, however, the Beijing-based company's profit slumped 30%, Reuters reported. The culprit was losses in the company's refining business. "The complex and turbulent worldwide political and economic environment in 2011 saw global crude oil prices remain high and volatile," the news release said. "Rising domestic inflationary pressure and continuing price controls on refined oil in China generated immense challenges for the business." In the release, Fu Chengyu, Sinopec's chairman, said complex geopolitical tensions were likely to keep international oil prices high. He added that China's economic growth was facing downward pressure, which should lead to slowing growth in demand for refining and chemical products. Sinopec's board declared a final dividend of 0.20 yuan per share, bringing the total 2011 dividend to 0.30 yuan per share, up 42.8% from 2010. Sinopec's New York-traded shares closed Friday up 89 cents at $111.30.