Chinese Sinopec incurred its first net loss for half a year in light of weak fuel demand due to the outbreak of the Coronavirus.
According to Reuters, Asia’s largest oil refiner said in a notice to the Shanghai Stock Exchange that it suffered a net loss of 21.725 billion yuan ($ 3.17 billion) for the first six months of the year. 2020, its only semi-annual loss on Refinitiv Icon data dating back to 2003.
the company had made a profit of 32.206 billion yuan a year ago, and the most recent results imply a loss of 1.943 billion yuan between April and June, which is much less than the loss of the first quarter. Amounting to 19.782 billion yuan.
Sinopec said the company's operations and profitability improved month after month from the second quarter and its performance stabilized.
first-half revenues fell 31 percent from a year ago to 1.03 trillion yuan, with sales of refined products falling 26.1 percent after the epidemic hit energy consumption.
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The volumes of processed crude oil decreased by 10.5 percent to 110.95 million tons, equivalent to 4.45 million barrels per day. The company, which recently launched a new refinery with a capacity of 200,000 barrels per day in southern China, aims to increase production to 130 million tons (5.1 million barrels per day) in the second half.
Sinopec produced 140.27 million barrels (771 thousand barrels per day) of crude oil, down 1 percent year on year, while natural gas production rose 0.1 percent to 512.41 Billion cubic feet. The company aims to produce 138 million barrels and 580.5 billion cubic feet in the second half.
capital spending reached 44.99 billion yuan, less than a third of the annual target of 143.4 billion yuan. Sinopec said it expects spending for the whole year to be about ten percent less than that target.
(Amazon fun knowledge)
