Page 12 - AsianOil Week 17 2021

AsianOil EAST ASIA AsianOil

Sinopec returns to profit in Q1

PROJECTS & CHINA’S state-run Sinopec Corp. has posted
COMPANIES a first-quarter net profit of CNY17.93bn
($2.77bn), a significant turnaround from the
CNY19.87bn ($3.07bn) loss it recorded in same
period of 2020.
In commenting about the positive forces on
its bottom line, the company highlighted “global
epidemic prevention and control” efforts as
growth drivers.
Asia’s largest refiner noted that mainland Chi-
na’s GDP had expanded by 18.3% year on year
in the quarter, while the Brent benchmark had
climbed by 21.2% y/y to average $60.9 per bar-
rel. The company added: “The domestic demand
for refined oil products recovered steadily and
demand for natural gas and chemical products Sinopec’s oil and gas production
maintained rapid growth.” expanded by 4.2% y/y to 117.03mn barrels of
Sinopec said it had upped its first-quarter run oil equivalent (boe). The company’s efforts
rates by 16.3% on the year to 62.52mn tonnes to boost its gas output paid off, with produc-
(5.09mn barrels per day) of crude on the back of tion climbing by 16.8% y/y to 291.6bn cubic
a 23.2% increase in domestic oil product sales to feet (8.26bn cubic metres). The company
40.03mn tonnes. said it had built up gas production capacity
The company’s refining unit returned to in the West Sichuan, Weirong and Dong-
black in the first quarter, recording CNY19.89bn sheng gas fields.
($3.07bn) in earnings before interest and taxes Sinopec’s crude oil production, however,
(EBIT), compared with a CNY25.8bn ($3.99bn) shrank by 3.2% on the year to 68.41mn barrels.
loss in the same period of 2020. This was despite efforts to build production
Commenting on the performance, Sinopec capacity in Shunbei, the west rim of Jungar and
said: “We optimised crude oil resources allocation other oilfields, while also expanding the use of
and co-ordinated the whole process management enhanced oil recovery (EOR) technology at the
of crude oil supply to lower procurement cost and company’s older fields.
also increased production of low-sulphur bunker Despite the dip in oil production, Sinopec’s
fuel, with an output of first quarter up by 187% and upstream division saw its first-quarter EBIT
market share improving continuously.” jump 54.1% to CNY3.07bn ($474.6bn). The
The company’s marketing and distribution company said realised oil prices had climbed
division also turned around its performance, by 11.7% on the year to $54.89 per barrel,
posting EBIT of CNY8.55bn ($1.32bn) com- while realised gas prices had risen by 10% to
pared with a CNY1.54bn ($238.1mn) loss in the $7.07 per 1,000 cubic feet ($249.64 per 1,000
year earlier period. cubic metres).™

OCEANIA

FAR says Remus is unlikely to

proceed with takeover offer

PROJECTS & AUSTRALIA’S FAR Ltd has indicated that it these letters, it explained, a Remus representative
COMPANIES does not expect Remus Horizons, a private said that his organisation was not in a position
investment fund, to move forward with a takeo- to lodge its bidder’s statement because its regis-
ver proposal that would allow it to gain a minor- tration as a private investment fund had recently
ity stake in Sangomar, an oil-bearing block been suspended.
located offshore Senegal. In the other letter, FAR said, another Remus
In a statement, FAR indicated that it had representative reported that the investment
come to this conclusion last week, after receiv- fund had not secured the proper authorisation
ing two letters in which Remus explained that it to move ahead with the takeover plan. It quoted
had run into a number of difficulties. In one of the representative as saying that Remus did not

P12 www. NEWSBASE .com Week 17 29•April•2021