• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 1 hour Bloomberg: shale slowing. Third wave of shale coming.
  • 3 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 3 hours Boring! See Ya Clowns, And Have Fun In Germany
  • 3 hours Crazy Stories From Round The World
  • 5 hours USA Carried Out Secret Cyber Strike On Iran In Wake Of Saudi Oil Attack
  • 6 hours Shale Magic: SABIC, ExxonMobil break ground on US Gulf Coast petrochemical project
  • 6 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 4 hours 5 Tweets That Change The World?
  • 1 hour the future
  • 31 mins China's Blueprint For Global Power
  • 7 hours PETROLEUM for humanity 
  • 3 hours Climate Protesters Blocking Roads etc...
  • 8 hours How The US Quietly Lost The 1st Amendment
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

World’s 2nd Largest Oil Company Sees Huge Drop In Profit

Sinopec reported a 76-percent drop in its latest quarterly profit for October-December 2018, which is the lowest since at least the third quarter of 2016, Reuters reports, citing the company.

However, the bad news was not a result of the company’s normal operations but of derivatives trading losses incurred by its trading arm Unipec. The division booked net losses of US$690 million (4.65 billion yuan) in the fourth quarter of last year on bad oil hedging bets. This pressed the parent company’s net result to US$461.57 million (3.1 billion yuan) despite a 33-percent increase in revenues during the three-month period, as calculated by Reuters.

In refining specifically, China’s top refiner reported even worse profit figures, according to Bloomberg calculations. This fell by as much as 90 percent in the fourth quarter

For the full year, however, things looked much better in the profit department, with Sinopec reporting a 23-percent annual rise and solid growth in revenues. The improvements, like the better results of other oil companies, came on the back of higher oil prices.

Now the company plans to spend more to boost oil production as instructed by Beijing. This year, however, production will not grow but decline from 2018, projected at 288 million barrels, of which 39 million barrels from projects abroad. Last year, Sinopec pumped 288.5 million barrels, of which 39.6 million barrels from projects abroad.

To this end, Sinopec’s 2019 capital spending will be the highest in five years at US$20.3 billion (136.3 billion yuan), versus US$17.58 billion (118 billion yuan) spent last year. Boosting local production of oil and gas is a priority for China’s government as demand for the commodities rises and so do imports.

No wonder then that 44 percent of the total 2019 budget will be allocated for exploration and production, with the focus being on boosting natural gas production to 1.02 trillion cubic meters from 977 billion cubic meters in 2018.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play