Sinopec sees refining gains under fuel sales scheme

China Petroleum and Chemical Corp. (Sinopec) said its refining division would become profitable under China’s new fuel sales scheme, with 2009 first-quarter profit likely to record at least 50% year-on-year growth. Tthe price of crude has fallen significantly from last year’s record high, which allows a big profit margin for Sinopec’s refining and marketing sector. The company’ said its refining division would remain profitable so long as crude stays below HK$624 (US$80) per barrel. In line with this, Beijing has said it would make frequent adjustments to local fuel prices to adjust to global prices. Sinopec had earlier reported that its net profit for 2008 fell 47% year on year, the company’s first decline in seven years, from RMB56.53 billion (US$8.27 billion) in 2007 to RMB29.77 billion (US$4.36 billion) in 2008. (March 30/31, 2009)