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Sinopec says 2018 profits likely surged 50% amid reduced costs, increased sales

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Sinopec says 2018 profits likely surged 50% amid reduced costs, increased sales

Despite a challenging economic environment, China Petroleum & Chemical Corp., known as Sinopec, expects full-year 2018 net profit climbed more than 50% thanks to reduced operating costs and increased sales.

The world's largest refiner by capacity said Jan. 7 that refined oil sales topped 40 million tonnes for the first time, while total lubricants sales rose 5% on the year.

While moving ahead with asset divestitures, Sinopec utilized cost control measures to manage its existing upstream fleet, which led to a reduction in its per barrel operating cost.

Sinopec reported in October 2018 that for the first nine months of 2018, Sinopec's net profit attributable to shareholders was 60.16 billion Chinese yuan, soaring 52.7% on the year in accordance with the International Financial Reporting Standards.

Net operating profit during the period was 85.875 billion yuan, rising 54% year over year due to higher global crude oil prices.

As of Jan. 4, US$1 was equivalent to 6.87 Chinese yuan.