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Full-year net profit fell to 29.8 billion yuan ($4.36 billion) from 56.5 billion yuan in 2007, Sinopec, whose full name is China Petroleum & Chemical Corp., said in a statement to the Hong Kong Stock Exchange. |
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Full-year net profit fell to 29.8 billion yuan ($4.36 billion) from 56.5 billion yuan in 2007, Sinopec, whose full name is China Petroleum & Chemical Corp., said in a statement to the Hong Kong Stock Exchange.
"In 2008, the company was under pressure from both meeting domestic market demand and suffering huge losses as a result of the government's strict price control over oil products," Beijing-based Sinopec said.
Sinopec had warned its earnings were likely to fall by about 50 percent last year, despite a gradual improvement in losses in its refining sector as international crude oil prices declined from their peak of about $150 per barrel in July.
An easing of government price controls aimed at bringing lower domestic prices closer to international levels also helped bring net profit in the fourth quarter to 13.3 billion yuan ($1.9 billion), up from 8.2 billion yuan ($1.2 billion) in the third quarter.
But the improvement was offset somewhat by a sharp slowing in China's industrial output that has hit demand for chemicals and fuel.
As the leading state-owned refiner, Sinopec was required to boost production to meet fuel shortfalls, especially for diesel, despite grievous losses in its refining business. To compensate for those losses, it received 50.3 billion yuan ($7.4 billion) in subsidies. It earlier reported 3 billion yuan in value-added tax refunds for refined oil products.
(AP)
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