Sinopec Q3 net profit drops 25% quarter-on-quarter

China Petroleum & Chemical Corporation (Sinopec) reported net earnings of 16.55 billion yuan which calculates to 0.19 yuan of earnings per share for the third quarter Thursday, up 124.1 percent year-on-year, but the net profit dropped 25 percent quarter-on-quarter.

The company's net profit in the first three quarters reached 49.7 billion yuan, up 230 percent year-on-year.

The 230 percent growth was due to the new oil price mechanism implemented on May 8 that contributed to the oil refining business' ability to turn deficits into profits, as well as the increase in market expansion, and improvement of management.

The revenues from the chemical engineering business also soared to 14.31 billion yuan compared with 376 million yuan in the same period last year.

According to Sinopec's report released Thursday, as a leader in domestic oil sales market, the sales of petroleum products in the first nine months fell 5.53 percent compared with the same period last year, but sales in the third quarter increased by 18.35 percent compared with the second quarter.

Sinopec also predicted a 50 percent year-on-year growth for the whole year of 2009 in the report.

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