BEIJING - Qilu, the best-performing of all the refineries run by Sinopec (0386.HK: Quote, Profile, Research, Stock Buzz) in the first five months of this year, may lose around 800 yuan ($116.8) for each tonne of crude it processes in July, an industry source said on Thursday.
"Based on June's crude oil costs, the refinery may lose some 700 million yuan ($102.1 million) in July," said the source familiar with the plant's operations. He said the plant would process 880,000 tonnes of crude in the month.
The estimate was derived without taking into account a tax rebate on crude oil imports that Beijing introduced in April, the source added.
The rebate, which refunds three-quarters of the 17 percent value-added tax on imported oil, could be to be dropped from July, industry sources have told Reuters. [ID:nPEK97116]
China's state-owned refiners are still incurring losses even after Beijing raised the prices of major refined oil products by nearly 20 percent on June 20.
Sinopec in general would lose at least 1,200 yuan for each tonne of crude oil it process after the price hike, given crude at $135 a barrel and without the rebate, said Qiu Xiaofeng, an oil analyst China Merchants Securities.
Refiners, who are required by the government to ensure steady fuel supply to the domestic market, lost 3,000 yuan for each tonne of oil products they produced before the increase, said Xu Kunlin, a deputy chief in the Pricing Department of the National Development and Reform Commission.
Sinopec (600028.SS: Quote, Profile, Research, Stock Buzz)(SNP.N: Quote, Profile, Research, Stock Buzz) plans to raise Qilu's crude processing this month by a third to 207,200 barrels per day (bpd) from June after regular maintenance, the source said.
In June, Qilu processed around 155,700 bpd because of a 25-day turnaround, during which it shut down a crude unit of 70,000 bpd, a catalytic cracker of 1.4 million tonnes per year (tpy) and a coking unit of 1.4 million tpy.
Sinopec, the top refiner in Asia, had also planned to raise July's runs at its Jinling plant by nearly 80 percent from last month after delayed maintenance. ($1=6.853 Yuan)
"Based on June's crude oil costs, the refinery may lose some 700 million yuan ($102.1 million) in July," said the source familiar with the plant's operations. He said the plant would process 880,000 tonnes of crude in the month.
The estimate was derived without taking into account a tax rebate on crude oil imports that Beijing introduced in April, the source added.
The rebate, which refunds three-quarters of the 17 percent value-added tax on imported oil, could be to be dropped from July, industry sources have told Reuters. [ID:nPEK97116]
China's state-owned refiners are still incurring losses even after Beijing raised the prices of major refined oil products by nearly 20 percent on June 20.
Sinopec in general would lose at least 1,200 yuan for each tonne of crude oil it process after the price hike, given crude at $135 a barrel and without the rebate, said Qiu Xiaofeng, an oil analyst China Merchants Securities.
Refiners, who are required by the government to ensure steady fuel supply to the domestic market, lost 3,000 yuan for each tonne of oil products they produced before the increase, said Xu Kunlin, a deputy chief in the Pricing Department of the National Development and Reform Commission.
Sinopec (600028.SS: Quote, Profile, Research, Stock Buzz)(SNP.N: Quote, Profile, Research, Stock Buzz) plans to raise Qilu's crude processing this month by a third to 207,200 barrels per day (bpd) from June after regular maintenance, the source said.
In June, Qilu processed around 155,700 bpd because of a 25-day turnaround, during which it shut down a crude unit of 70,000 bpd, a catalytic cracker of 1.4 million tonnes per year (tpy) and a coking unit of 1.4 million tpy.
Sinopec, the top refiner in Asia, had also planned to raise July's runs at its Jinling plant by nearly 80 percent from last month after delayed maintenance. ($1=6.853 Yuan)
