403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Sinopec reveals drop in profits despite recovery in fuel demand
(MENAFN) China Petroleum and Petrochemical Corporation (Sinopec) revealed a 9.9 percent decrease in net profits for the year 2023, citing the downturn in oil and gas prices as a primary contributing factor. Despite benefiting from a resurgence in fuel demand, the company faced challenges amidst a volatile market landscape. According to a filing submitted to the Shanghai Stock Exchange, Sinopec disclosed a net income of 60.5 billion yuan (USD8.37 billion), adhering to Chinese accounting standards.
In response to inquiries from Reuters, Sinopec acknowledged the complexities of the operational environment and the heightened competition it encountered throughout the previous year. The company's performance in 2023 reflects a continuation of the downward trend observed in 2022, when it reported a 6.9 percent decline in net income. This regression was attributed to the adverse effects of anti-coronavirus measures on fuel and chemical demand, underscoring the lingering impact of the pandemic on global economic activity.
Despite these challenges, there were signs of recovery in certain sectors of Sinopec's operations. The resurgence in demand for aviation fuel and gasoline emerged as key drivers, buoyed by the gradual rebound in air travel and increased automobile usage within China. As pandemic-related restrictions eased, consumers resumed travel activities, contributing to the uptick in fuel consumption. However, these positive developments were insufficient to fully offset the broader market pressures exerted by fluctuating oil and gas prices.
The announcement of declining profits underscores the intricacies of navigating the energy landscape amidst evolving market dynamics and geopolitical uncertainties. Sinopec, as the world's largest oil refining company by production capacity, remains vigilant in adapting to changing conditions and maintaining competitiveness in the global energy market. Despite the challenges encountered in 2023, the company remains committed to fostering sustainable growth and resilience in the face of ongoing challenges.
In response to inquiries from Reuters, Sinopec acknowledged the complexities of the operational environment and the heightened competition it encountered throughout the previous year. The company's performance in 2023 reflects a continuation of the downward trend observed in 2022, when it reported a 6.9 percent decline in net income. This regression was attributed to the adverse effects of anti-coronavirus measures on fuel and chemical demand, underscoring the lingering impact of the pandemic on global economic activity.
Despite these challenges, there were signs of recovery in certain sectors of Sinopec's operations. The resurgence in demand for aviation fuel and gasoline emerged as key drivers, buoyed by the gradual rebound in air travel and increased automobile usage within China. As pandemic-related restrictions eased, consumers resumed travel activities, contributing to the uptick in fuel consumption. However, these positive developments were insufficient to fully offset the broader market pressures exerted by fluctuating oil and gas prices.
The announcement of declining profits underscores the intricacies of navigating the energy landscape amidst evolving market dynamics and geopolitical uncertainties. Sinopec, as the world's largest oil refining company by production capacity, remains vigilant in adapting to changing conditions and maintaining competitiveness in the global energy market. Despite the challenges encountered in 2023, the company remains committed to fostering sustainable growth and resilience in the face of ongoing challenges.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Comments
No comment