Sinopec returns to profit in H1 on higher oil prices
Chinese state-run Sinopec returned to profit in the six months to June 30 (H1) owing to a recovery in oil prices, it said on August 29.
The company posted a net profit of 40bn yuan ($6.2bn) in H1 against a loss of 21.8bn yuan a year ago. H1 oil and gas production increased 4.2% year/year to 235.29mn barrels of oil equivalent. Oil production was down 1.5% yr/yr at 1.38m tonnes, while gas output rose 13.7% yr/yr to 582.6bn m3, Sinopec said. Realised oil price was up 39% yr/yr while the gas price was up 12% yr/yr.
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The company expects China’s economy to maintain steady growth in H2 on the basis of the good momentum in the first half of the year. The capital expenditures are budgeted at 109.26bn yuan.
Sinopec said about 42.84bn yuan will be invested in the exploration and production segment, mainly for the capacity building of Shunbei oilfield, Weirong, Fuling, and Western Sichuan natural gas projects, the construction of storage and transportation facilities for phase II of Tianjin LNG project, and CCUS project in Shengli oilfield.
In H2, the company plans to produce 141mn barrels of crude oil and 633.5bn m3 of natural gas.