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Petroleum industry

Sinopec's Output Falls Short of Targets Amid Global Economic Slump

Strategic Insights

— 2 min read

China Petrochemical Corp, the parent company of listed China Petroleum & Chemical Corp (Sinopec), has announced output figures that fell short of its targets, particularly in the petrochemical segment, which has been adversely affected by the global economic downturn. The company's total crude oil output stood at 41.8 million tonnes last year, up 1.75% from 2007, but missing Sinopec's target of 42 million tonnes. Similarly, natural gas production totaled 8.26 billion cubic meters, up 3.25% from the previous year, but short of the adjusted target of 8.28 billion cubic meters.

Key Takeaways:

  • Sinopec's total crude oil output was 41.8 million tonnes in 2008, up 1.75% from 2007, but short of its target of 42 million tonnes by 0.5%.
  • Natural gas production totaled 8.26 billion cubic meters in 2008, up 3.25% from the previous year, but missing its adjusted target of 8.28 billion cubic meters by 0.2%.
  • The petrochemical segment, which includes downstream chemicals and intermediates, was particularly affected, with ethylene production down 5.14% from 2007 and missing Sinopec's revised target of 6.57 million tonnes by 3.3%.
  • The global economic slump is attributed to the missing of the revised target, with demand coming down in the fourth quarter, according to Shenyin Wanguo Securities analyst Yu Chunmei.
  • Sinopec's refining business processed 173 million tonnes of crude oil in 2008, up 4.37% from 2007, but short of its target of 174 million tonnes by 0.6%. The downstream business sold 123 million tonnes of refined fuel in 2008, up 3.02% from 2007, but missing its goal of 124 million tonnes by 0.8%.

Statistics:

  • 41.8 million tonnes: total crude oil output by Sinopec in 2008
  • 1.75%: increase in total crude oil output from 2007 to 2008
  • 0.5%: percentage of missed oil production against targeted output for 2008
  • 8.26 billion cubic meters: natural gas production by Sinopec in 2008
  • 3.25%: increase in natural gas production from 2007 to 2008
  • 0.2%: percentage of missed natural gas production against targeted output for 2008
  • 6.35 million tonnes: ethylene production by Sinopec in 2008
  • 5.14%: decrease in ethylene production from 2007 to 2008
  • 3.3%: percentage of missed ethylene production against revised target

Sources:

  • Eric Ng, "Sinopec's Output Falls Short of Targets Amid Global Economic Slump," China Daily, [No Date Given]
  • Shenyin Wanguo Securities analyst Yu Chunmei, as quoted in "Sinopec's Output Falls Short of Targets Amid Global Economic Slump," China Daily, [No Date Given]

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