Sinopec profits surge as China eases pricing rules

Sinopec petrol station China has been looking for energy sources to fuel its economic expansion

Asia's biggest oil refiner, China Petrochemical Corporation also known as Sinopec, has posted a 24% jump in profit in the January to June period.

It made a net profit of 30.3bn yuan ($4.9bn; £3.2bn) during the six months, up from 24.5bn yuan a year earlier.

Its margins were boosted after China introduced measures to allow domestic fuel prices to be linked more closely with international prices.

Sinopec said it expects its earnings to grow further in the coming months.

"In the second half of the year, we expect balanced supply and demand fundamentals in the global oil market and a steady growth in domestic demand for refined oil products and chemicals," chairman Fu Chengyu said in a statement.

"The Chinese government will accelerate structural adjustments and upgrades to maintain stable economic growth."

China's National Development and Reform Commission (NDRC), the country's top economic planning body, introduced a new pricing mechanism in its domestic fuel market in March this year.

It shortened the window for retail fuel-price adjustments to 10 days from 22 days, making it easier for oil companies to set prices closer to international market rates.

It also adjusted the varieties of crude used to calculate price changes for domestic oil products.

China's other refining giants have also posted an increase in profits.

Profits at PetroChina rose 5.6% in the first six months of the year, compared to the same period a year earlier.

Meanwhile, Cnooc's earnings during the period rose 7.9% from a year ago.

More on This Story

Business of Energy

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

  • Woman in swimming pool Green stuff

    The element that makes a familiar smell when mixed with urine


  • Plane at Shannon airportShannon's call

    The airport that hosted a roll-call of presidents


  • Susanne du ToitTop 10 Tips

    Portrait painter Susanne du Toit on being an artist


  • Atletico's Diego Godin celebrates his goal with teammate David VillaWeek in pictures

    The best news photographs from around the world


From BBC Capital

Programmes

  • Joe Ierardi playing a pianoClick Watch

    Meet the man trying to create the perfect digital piano - but is it as good as the real thing?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.