China’s Sinopec Corp 0386.HK on Thursday reported a 34% rise in third-quarter net profit to 17.86 billion yuan ($2.44 billion) as higher refinery output and strong fuel sales offset lower realised oil and gas prices.
Sinopec, the world’s largest refiner by capacity, achieved revenue of 876.3 billion yuan, up 4.2% from a year earlier, the company said in a stock filing.

Between January and September Sinopec processed 193.74 million metric tons of crude oil, or 5.18 million barrels per day, up 7.6% versus a year earlier.

Refined fuel sales soared 19% to 180.55 million tons, reflecting a continued demand recovery domestically as well as growing fuel exports as the refiner cashed in robust overseas margins.

Of the total fuel sales, domestic sales expanded 16.9% to nearly 143 million tons, indicating overseas fuel sales of nearly 38 million tons, a 28% rise year-on-year based on Reuters’ calculations.

Domestic fuel demand extended its recovery into the third quarter, with a rebound in travel during China’s Golden Week holidays supporting gasoline and kerosene consumption.

Its petrochemical business, particularly synthetic fiber and polymer, remained under pressure however due to a severe supply overhang, the company said.

During the first nine months of the year Sinopec produced 210.6 million barrels of crude oil, down 0.1%, while its natural gas output rose 8.7% to 993 billion cubic feet.

The company has been stepping up exploring geologically more challenging reserves, like the Bazhong gas field and more shale gas acreage in Sichuan.

Capital expenditure for the first nine months amounted to 08.1 billion yuan, up from 104 billion yuan a year earlier.

Sinopec’s Hong Kong-listed shares 0386.HK have risen 6.1% year-to-date, outperforming the Hang Seng Index .HIS which has fallen 13.6% during the period.
Source: Reuters (Reporting by Andrew Hayley in Beijing and Chen Aizhu in Singapore; editing by Jason Neely and Jan Harvey)