Asia’s largest oil refiner said in a notice to the Shanghai Stock Exchange that it suffered a net loss of 21.725 billion yuan ($ 3.17 billion) for the first six months of 2020, its only semi-annual loss on Refinitiv Eikon data going back to 2003.
The company reported a profit of 32.206 billion yuan a year ago, and the latest results are losing ground
1.943 billion yuan between April and June, much less than the first-quarter loss of 19.782 billion yuan.
Sinopec said, “The company’s operations and profitability improved month after month of the second quarter,” and its performance stabilized.
First-half revenues fell 31 percent from a year ago to 1.03 trillion yuan, with sales of refined products dropping 26.1 percent after the epidemic hit energy consumption.
Processed crude oil volumes decreased 10.5 percent to 110.95 million tons, equivalent to 4.45 million
Barrels per day. The company, which recently launched a new 200,000 bpd refinery in southern China, aims to increase production to 130 million tons (5.1 million bpd) in the second half.
Sinopec produced 140.27 million barrels (771 thousand barrels per day) of crude oil, down 1 percent year on year, while natural gas production rose 0.1 percent to 512.41 billion cubic feet. The company aims to produce 138 million barrels and 580.5 billion cubic feet in the second half.
Capital spending reached 44.99 billion yuan, less than a third of the annual target of 143.4 billion yuan. Sinopec said it expects spending for the whole year to be about ten percent less than that target