Sinopec Corp., commonly known as China Petroleum & Chemical Corp. (600028.SS), reported a 6.9% fall in net income for 2022 as a result of Beijing’s COVID-19 control measures and a decline in petrochemical consumption, as reported by Reuters.
According to Chinese accounting norms, net profit last year was 66.3 billion yuan ($9.65 billion), down from 71.21 billion yuan in 2021, the largest Asian oil refiner reported in a stock exchange filing on Sunday.
Sinopec stated that the Chinese market’s demand for natural gas, petrochemicals, and refined oil products was “lacklustre” for 2022 due to a variety of issues.
Due to China’s strict COVID regulations, sales of petrol and aviation fuel declined by 11% and 18.4% over 2021, respectively, according to Sinopec.
Chemical fibre sales were down 18.1%.
Due to a change in government policy intended to increase refined fuel exports by the end of 2022, the refiner recorded a 4% increase in diesel fuel sales.
The state-owned oil and gas company intends to generate 12,918 trillion cubic feet of natural gas and 280.23 million barrels of crude oil in 2023.
Sinopec expects its crude throughput to be 250 million tonnes, or around 5 million barrels per day, without providing a figure for 2022.
The company stated that the “total Chinese economy is predicted to rebound in 2023, poised to increase swiftly domestic demand for natural gas, refined gasoline, and chemicals.” It also stated that due to geopolitics and inventory levels, the price of oil is likely to remain high globally.
This year, Sinopec aims to spend 165.8 billion yuan ($24.14 billion) on capital projects, which is less than the record-breaking 198 billion yuan it had planned for 2022. The business does not give a number for actual expenditure in 2022.
Separately, Sinopec plans to raise up to 12 billion yuan through an A-share private placement to pay for five projects, including the third phase of the Tianjin LNG terminal development and various fine chemicals projects in Maoming and Zhanjiang.
Also, Sinopec set aside 12.7 billion yuan for 2022 asset impairment.
($1 = 6.8675 Chinese yuan renminbi)
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