Sinopec 2016 Net profit Up 44%

Chinese Sinopec March 26 said its net profit for the year that ended December 31, 2016 was yuan 46.7bn ($6.7bn), up 44% on year as growth in refining profit enabled the company to withstand the impact of low oil prices. The company had been in the red during both 2014 and 2015.

Its oil and gas production declined by 8.6% year-on-year to 431.29mn barrels of oil equivalent. Its domestic crude production dropped by 13.2% from the previous year, while natural gas production went up by 4.3% from a year ago.

Sinopec developed phase two of the Fuling shale gas project, raising output. Total capital expenditures for the year were yuan 76.45bn. Capital expenditures for the exploration and production segment were yuan 32.18bn, mainly for the Fuling shale gas and Yuanba gas field development projects and the LNG terminal projects in Guangxi and Tianjin, as well as overseas projects. 

In 2017, the company plans to produce 294mn boe. It plans to produce 879.9bn ft³ of natural gas. Capital expenditure for the year is budgeted at yuan 110.2bn. The exploration and production segment will account for expenditures of yuan 50.5bn, mainly for second phase of Fuling shale gas development project, Tianjin LNG and gas storage project. 

Sinopec projected its 1Q2017 net profit to increase by 150% on year. 

Shardul Sharma