Sinopec, China’s biggest oil refiner, posted higher third-quarter profits after the Iran war boosted energy prices and helped improved processing margins.
The state-owned company, formally known as China Petroleum & Chemical Corp., said net income rose 64% from a year earlier to 13.6 billion yuan ($2 billion) according to an exchange filing on Thursday. Revenue increased 9.3% to 770 billion yuan.
Average Brent crude prices over the period rose by a third to $91 a barrel, lifting margins at Sinopec’s oil and gas drilling operations but raising import costs at its mainstay refining business. Chinese refineries are facing massive challenges as domestic fuel demand evaporates due to the economy’s rapid electrification.
The industry has found some relief by tapping stockpiles to weather the disruptions to crude flowing from the Persian Gulf. Tighter supply in Asia of products such as diesel have also bolstered margins.
Refining throughput over the first nine months of the year fell 10% to 167 million tons, while crude oil production slipped 0.1% thanks to a drop in overseas output. Natural gas output grew 1.4% over the period.
source: RIGZONE