Sinopec Makes Nearly 200 Million Yuan Per Day

China's largest oil refiner Sinopec yesterday disclosed the year 2011 results, according to Chinese accounting standards, last year the company's net profit was of 71.697 billion yuan, only 1.4% growth over year 2010, which means Sinopec earned nearly 200 million yuan (1.96 billion yuan) last year, however, it was Sinopec performance growth of the worst year since year 2008.

Assets total 1.13 trillion yuan

Financial report data show that in year 2011 the purchased crude oil processing capacity was of 166.85 million tons, 73 % of its total crude oil processing volume. Last year the average international oil price was of $ 111.27 / barrel, increased by 40% over the previous year. Last year the refining business loss amounted to 37.6 billion yuan.

Annual report disclosed that the petrochemical industry access control is being relaxed

It is noteworthy that yesterday Sinopec disclosed in its annual report that the company also faced a number of macroeconomic policies and government regulatory risk.

For example: the Chinese government is to gradually relaxing the access regulation of the oil and petrochemical industry, but is still continuing the implementation of a certain degree of access control on the domestic oil and petrochemical industry, including: the issuance of the crude oil and gas exploration and production license; it also expressed that those were likely to have great adversely influence on the production, operation and efficiency of the company.

Currently Sinopec and PetroChina, CNOOC and several major oil companies almost monopolize the domestic oil and gas production and processing business.

During the "Two sessions", it is of widespread concerns of the implementation of the "new 36" rules to allow private enterprises to enter the petrochemical monopoly industry.