China's oil majors set for 1H 2021 bumper profits, cites strong petchem margins

Quantum Commodity Intelligence – China's two biggest energy firms, state-controlled PetroChina and Sinopec, are set to declare buoyant profits for the first half of 2021, following China's economic rebound from Covid-19 and strong petrochemical margins, Argus Media reported Friday

PetroChina made an estimated profit of CNY45bn-60bn ($7.3bn-9.3bn) in January-June this year compared to a net loss of CNY30 billion in the same period of 2020, the company reported. Its estimated 1H 2021 profit would also be up sharply from CNY28.4 billion in January-June 2019.

Sinopec said it expects to report a net profit of CNY36.5-38.5 billion in the first half of this year, up from a net loss of CNY22.9 billion in January-June 2020 and a profit of CNY31.3 billion in the same period in 2019.

Final results from both companies are due to be released in late August.

Meanwhile, private-sector Hengli Petrochemical, which operates a 400,000 b/d refinery at Changxing in Dalian, estimated that its net profit will rise by 54% to CNY8.5 billion in the period.

Both companies have also been helped by sharply higher oil prices this year. 

Quantum's monthly average price for August-loading Dubai crude was $71.57/b, compared to the July-contract average of $66.32/b, while August DME Oman futures averaged $71.66/b compared to the July average of $66.40/b.

Dubai traded at a 26-month high of $73.85/b on June 28.