Sinopec posts $3.64 billion net profit in Q3

China’s Sinopec reported a net profit attributable to shareholders of 24.45 billion yuan ($3.64 billion) during the third quarter, while boosting natural gas sales and maintaining production levels, Kallanish Energy reports.

The company said in its financial statement net profit was down 44.7% compared to the 44.22 billion yuan ($6.6 billion) recorded a year ago, as the global spread of Covid-19 impacted global economy and demand for hydrocarbons.

Yet, “domestic demand for natural gas and chemical products maintained growth and demand for refined oil products recovered steadily quarter on quarter,” Sinopec said.

The top Chinese oil refiner said it accelerated natural gas capacity building in West Sichuan, Dongsheng and Weirong gas fields, and continuously progressed with the development of the Fuling, Puguang and Yuanba gas fields.

Natural gas production in Q3 remained stable, with volumes reaching 772.14 billion cubic feet (Bcf) in the first three quarters of the year, which is also at similar levels than in 2019. Gas sales, however, increased by 9.9% y-o-y, enabling the continued growth in market share.

Sinopec’s average natural gas prices during the first nine months of the year stood at $5.32 per thousand cubic feet (Mcf), which is 14.1% lower than prior year.

This post appeared first on Kallanish Energy News.