Sinopec posts production increases

Sinopec, Ltd reports a 31% rise in exploration expenses.

Sinopec or China Petroleum & Chemical Corporation reported US$1.9 billion in exploration expenses for the first nine months, a 31% increase year-to-year. It said its exploration activities are focused on achieving growth in reserve and production volume and enhancing exploration in key areas.

Sinopec, the world’s sixth largest company, also reported more refinery throughput at 4.39 million barrels a day in the first nine months of the year, up slightly from 4.37 million a year earlier.

The company also said it has accelerated upgrading the quality of oil products, and adjusted its product mix to increase the output of gasoline and jet fuel.

Despite these activities, Sinopec said that its third-quarter net profit fell 9.4% year-on-year due to a lower contribution from its chemicals business.

Sinopec reported a net profit of US2.9 billion for the three months ended September 30, a US$303 million drop from US$3.2 billion in the same period last year.