Chinese Energy Major Sinopec Reports Q1 Numbers
China Petroleum & Chemical Corporation (Sinopec) has reported a sharp 267.1 percent jump in first quarter profits on the back of improved refining margins.
Sinopec’s net profit attributable to equity shareholders in the first three months of 2016 stood at 6.19 billion yuan ($955.65 million), compared with 1.69 billion yuan a year ago, the company said on Thursday.
“Amid low oil prices, the company's mid- and down-stream segments became the main profit growth drivers. Operating profits from refining, marketing and distribution, and chemical segments all recorded significant growth compared to the same period last year, reflecting its integrated advantages,” the company said.
Company achieved steady progress in second phase development of Fuling shale gas field. The second phase has a production capacity of 5 billion cubic meters (bcm).
In the first quarter, the oil and gas production was 114.7 million barrels of oil equivalent, down 2.7 percent, out of which crude oil output down by 9.3 percent while natural gas up by 16.7 percent, compared with the same period last year.
The company's capital expenditures were 5.53 billion yuan in the first quarter. Capital expenditures for exploration and production segment were 1.34 billion yuan, mainly for development in Fuling shale gas field, construction of LNG terminals in Guangxi and Tianjin, and construction of long-distance gas pipelines such as the Jinan-Qingdao gas pipeline (2nd phase).
The first phase of Fuling shale gas field went into production last year.
Asia’s biggest economy is working on building a substantial shale gas infrastructure. Despite many hurdles, the industry has managed to achieve significant progress in last few years. China’s recoverable shale gas reserves last year jumped 109 bcm to 130 bcm.
Ministry of Land and Resources (MLR), earlier this year, said country’s shale gas output in 2015 reached 4.47 bcm, up almost 259 percent on year. However, last year’s production missed government’s target of 6.5 bcm.