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Sinopec Group suffered RMB 114.4-bln refining loss last year

Published: 24 Jun 2009 17:02:10 PST

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Jun. 25, 2009 (China Knowledge) - China Petrochemical Corp (Sinopec Group), the parent of Sinopec<600028><0386><SNP>, on Jun. 23 posted RMB 114.4 billion in losses in the oil refining business for 2008 resulting from the high price of crude oil, sources reported.

According to the statistics released by the oil giant, the group's processed crude oil amounted to 173 million tons last year.

Sinopec posted RMB 102 billion of losses in the refining business for 2008, whereas it had RMB 13.6 billion in losses in 2007.

In the first four months of this year, Sinopec's sales volume of refined oil declined 10% year on year. Retail sales shrank 16% year on year, reaching 32 million tons. The declining sales volume is mainly a result of the shrinking market for diesel fuel, which accounting for two thirds of the sales.

In the same period, Sinopec saw a year-on-year decrease of 11% in sales volume of refined oil in North China, while it saw decreases of 12% in South China and 14% in East China. In the eastern areas of the country, the company saw a year-on-year decline of 9% in Jiangsu Province, 13% in Zhejiang Province, 12% in Fujian Province and 28% in Shanghai.

This year, Sinopec aims to sell more than 40 million tons of gasoline and 80 million tons of diesel fuel this year, accounting for 64% of China's refined oil market.

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