It's 106 miles to Chicago, we've got a full tank of gas, a half a pack of cigarattes, it's dark and we're wearing sunglasses. Your position:Home->china news-> Oil output rising add to some tentative signs of economic recovery in China
But the rebound in international oil prices to about $60 a barrel has pushed the company's refining business back into the red, because low, state-set fuel prices make it hard to recoup the greater costs. Su Shulin, chairman of the state-owned company, known more familiarly as Sinopec, said China's apparent consumption of fuel and other oil products rose 1.5% in April compared with a year earlier. Zhang Jianhua, senior vice president, said the company's refineries were running at 90% capacity. Sinopec is Asia's biggest refiner, with a smaller presence in oil and natural-gas production. The company has struggled with low profit margins despite a new government policy that domestic fuel prices should more closely track the international markets where Sinopec buys its crude oil. The company's profit fell 47% last year, its first annual earnings decline in seven years. Sinopec saw some relief when oil prices cratered, but the recent climb back toward $60 a barrel has erased its profit margins. 'The pressure is large,' Mr. Su said. To make up for losses on the domestic fuel market, Asia's biggest refiner has been exporting 600,000 tons of refined products a month, about half of it diesel, according to Mr. Zhang. The two Sinopec executives were speaking on the sidelines of the company's annual general meeting. Chinese customs data Friday showed that diesel exports rose to a record in April, while gasoline hit a near two-year high. Separately, Mr. Su said that Sinopec is actively assessing possible acquisition targets or ventures in South America and Africa. Shai Oster 
|
