Its forecast came after the company reported a 12 percent rise in first-half net profit on Monday, beating forecasts despite refining losses due to the combination of high
crude prices and capped domestic fuel prices.
Sinopec’s results benefited from cost control on crude oil purchases, increased oil product sales and solid revenue growth in its profitable chemical segment.
“If we were able to achieve this level for the first half, then we are quite optimistic for the second half of the year,” said Chairman Fu Chengyu at a press conference in Hong Kong.
“Given China’s current economic situation, the government will step up reform of domestic refined product prices. So we are optimistic and hope this reform will take place faster than expected,” Fu said.
Crude oil prices in the second half are likely to remain relatively high — $90 to $100 per barrel, he said.
Sinopec plans to process 114 million tons of crude oil in the second-half, 5 percent higher than the first-half crude run of 108.53 million tons.
The company will also focus on upstream output.
“We will seek to increase both domestic and overseas upstream production,” Fu said.
Sinopec aims to increase production to 165 million barrels of crude oil in the second half from 156 million barrels pumped in the first half, while natural gas output will fall slightly to 247.2 billion cubic feet in the second half, from 253.9 billion in the first half.
The company pledged to increase domestic investment in unconventional oil and gas but did not provide details.
Its shares jumped more than 7 percent on Monday, after the company reported better-than-expected interim results on Sunday.
