HONG KONG - Top Asian oil refiner Sinopec Corp posted a 69 percent fall in first-quarter net profit, lagging forecasts as soaring crude oil prices pushed its refining business into a deep loss.
In a statement on Sunday Sinopec said it had made a net profit of 6.06 billion yuan ($865 million) in the three months ended March, versus a slightly revised 19.6 billion a year earlier.
The result fell short of a consensus forecast 8.28 billion yuan from five analysts polled by Reuters.
Sinopec said it had taken multiple measures to enhance oil product output to secure supply to the domestic market, even as domestic prices of oil products turned out lower than crude prices.
"These measures have worked out salient results, but have also given rise to relatively big loss in the refining segment," it said.
Crude oil prices CLc1 jumped above $100 per barrel in January and hit a record near $120 this month on tight supply, geopolitical concerns and a weak dollar.
State-run Sinopec and top Asia oil producer PetroChina have found themselves squeezed between skyrocketing crude prices and government-set product prices, but operate under the obligation to supply the world's largest oil consumer after the United States.
Sinopec has said it won a 7.4 billion yuan government bailout to cover losses in the first three months.
In a statement on Sunday Sinopec said it had made a net profit of 6.06 billion yuan ($865 million) in the three months ended March, versus a slightly revised 19.6 billion a year earlier.
The result fell short of a consensus forecast 8.28 billion yuan from five analysts polled by Reuters.
Sinopec said it had taken multiple measures to enhance oil product output to secure supply to the domestic market, even as domestic prices of oil products turned out lower than crude prices.
"These measures have worked out salient results, but have also given rise to relatively big loss in the refining segment," it said.
Crude oil prices CLc1 jumped above $100 per barrel in January and hit a record near $120 this month on tight supply, geopolitical concerns and a weak dollar.
State-run Sinopec and top Asia oil producer PetroChina have found themselves squeezed between skyrocketing crude prices and government-set product prices, but operate under the obligation to supply the world's largest oil consumer after the United States.
Sinopec has said it won a 7.4 billion yuan government bailout to cover losses in the first three months.
