Sinopec achieves turnaround from loss to profit of RMB1,591 mn

29 Mar '10

5 min read

In 2009, the Group's crude oil costs amounted to RMB26,450 million, accounting for 58.76% of the Group's annual cost of sales. The average unit cost of crude oil processed was RMB3,020.15 per ton, representing a substantial decrease of 43.06% over the previous year. Crude oil costs of the Group for the Year decreased by RMB22,547 million as compared to 2008.

During the Year, all the projects under the Group's structural adjustment project (Phase 5) involving a total investment of approximately RMB8,000 million and spanning a period of six years were completed and put into operation. Of these projects, the new 600,000 ton/year PX aromatics complex and the new 150,000 ton/year C5 segregation plant commenced operation successfully after having commissioned the first test run on 14 September 2009 and 25 October 2009, respectively; the flue gas desulphurization project for furnaces No. 3 and No. 4 of coal-fired power generating plants commenced operation on 3 July 2009; and the entire renovation project for the 220,000- volt substation commenced operation on 22 June 2009. The completion and operation of all the projects under the structural adjustment program laid a solid foundation for growth in the Group's profitability in the future.

Looking forward, Mr. Rong Guangdao said, "In 2010, China's macroeconomic situation is expected to remain positive. The policies for boosting domestic demand and stabilizing overseas demand are gradually becoming more effective, and this should stimulate continued growth in market demand for domestic petroleum and petrochemical products. However, at the same time the upward trend of international crude oil prices has remained unchanged; newly added global production capacity for oil refining and ethylene may be released at the same time, in which case overcapacity would become more acute and competition would escalate as a whole. The Group will, in line with the changes in the external economic environment, continue to actively capitalize on market opportunities; strengthen HSE (health, safety and environment) and energy conservation and emissions reduction work on an ongoing basis; maintain the operation of production plants for a long cycle and at full capacity; strengthen internal management, devote dedicated efforts to project construction and strive to bring production operations, reform and development as well as harmony and stability to a new level again."

Sinopec Shanghai Petrochemical Company Limited

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