Sinopec Reports Higher 1Q Profit

China’s Sinopec made a profit of yuan 19.3bn ($3.05bn) in the first quarter, up 12.3% year on year thanks to higher refining margins and oil prices, it said April 27.

The company said it made new progress in northeast Sichuan area in Sichuan Basin and in Shunbei area in Xinjiang Tarim Basin and made discoveries in Weirong shale gas field. In 1Q, production was 111.33mn barrels of oil equivalent, down 0.5% year on year. Crude oil production was 71.35mn barrels, down 1% year on year while natural gas output increased 0.6% on year to 240bn ft³.

Sinopec reported realised natural gas prices of $6.28/’000 ft³ (which is practically the same value in mn Btu), up 25.6% from a year ago, while realised crude oil prices were $59.8/b, up 22%.

Refinery throughput grew by 2.1% and refined oil products production grew by 2.6%, among which gasoline up by 4.7%, kerosene up by 8.6% and diesel down by 1.7% over the same period of last year.

In 1Q, the total capital expenditure was yuan 6.41bn. Capital expenditures for exploration and production segment were yuan 1.59bn, mainly for capacity construction of shale gas, Hangjinqi natural gas and Shunbei crude oil, as well as the Wen 23 gas storage project, the second phase pressure boosting project of Sichuan-to-East China Pipeline, the first phase of Xinqi pipeline and overseas oil and gas projects.