Hong Kong-listed China Petroleum & Chemical Corporation, also known as Sinopec Corp, on Monday (30 March), during an announcement of its annual results for the 12 months ended 31 December 2019 (FY 2019), said it intends to further develop its IMO 2020 marine fuels business.
The company posted net profit of RMB 57.6 billion (USD 8.12 billion) in FY 2019, 8.7% lower than net profit of RMB 63.1 billion in FY 2018.
Its total operating income in FY 2019 was RMB 2.97 trillion, 2.6% more than operating income of RMB 2.89 trillion in FY 2018.
The refining segment, specifically, recorded operating profit of RMB 30.6 billion in FY 2019, 44.1% lower than operating profit of RMB 54.8 billion in FY 2018.
“Refining, under low oil price circumstance, with the coordination of production and sales, domestic and overseas markets, the company will optimize utilization rate and production scheduling, and promote efficient operation of its refining business chain,” said Sinopec Corp, summarising the business prospects of its refining segment.
“We will optimise the allocation of crude oil, coordinate crude oil supply chain, and reduce procurement costs. More efforts will be made in restructuring product slate, increasing products tailoring for market demand and changes.
“We will accelerate low-sulphur bunker fuel projects and the revamping of storage and transportation facilities to rapidly expand market share.”
The Chairman of Sinopec Corp expects the global economy to face more instability and uncertainty brought by the COVID-19 outbreak, moving forward.
“Although the Chinese economy may be temporarily impacted, China’s solid economic fundamentals will remain unchanged,” he said.
“We believe that as the control and prevention of outbreak continues to improve domestically, the domestic demand for petroleum and petrochemical products that was suppressed and frozen will rebound quickly.”
Editorial coverage by Manifold Times regarding bunker-related developments of Sinopec in FY 2019 have been compiled below:
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Photo credit: Sinopec
Published: 31 March, 2020
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