On April 27, Sinopec Corp. reported its unaudited results for the first quarter ended March 31, 2017.
In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB 17.199 billion, up by 157.9% compared with the same period last year.
In the first quarter of 2017, the Company endeavoured to coordinate all aspects of work, mainly emphasizing on cost reduction, market expansion, structural adjustments, consolidating growth basis and reforms, which resulted in notable good operating results.
Exploration and Production: The Company gave priority to high-efficiency exploration with efforts on enhancing progressive exploration and reservoir appraisal and made new oil discoveries in Shunbei area in Xinjiang, as well as new natural gas findings in Sichuan basin. In development, we adopted a profit-oriented approach, adjusting development activities and enhancing cost discipline. Our production of natural gas increased and Phase Two Fuling shale gas development project was progressed according to the plan.
Refining: The Company implemented market-oriented strategy, optimized resource allocation and managed to lower the purchasing cost of crude oil. We adjusted product mix and increased output of gasoline and kerosene with diesel-to-gasoline ratio further declining. We actively responded to challenges of abundant market supply by moderately increasing export of oil products and as a result, maintained our high utilization rate. We brought our centralized marketing advantages fully into play to further improve margins of asphalt, lubricant, LPG and other products. We accelerated the quality upgrading of GB VI refined oil products and GB V regular diesel.
Marketing and Distribution: The Company intensified marketing strategy of balancing profits and volume with priority on profits and gave full play of our advantages in integrated operation and marketing network, as well as optimizing internal and external resources and adjusting marketing tactics, to maintain total sales volume of refined oil products stable. We improved our marketing network through planning and construction of service stations as well as revamping storage and transportation facilities of refined oil products.
Chemicals: The Company fine-tuned its alignment among feedstock, facilities and product mix to raise profitability. We seized market opportunity of strong profitability from ethylene and ethylene derivative products, optimized operations of facilities, increased production of products well received in the market and high-value-added products, as well as enhanced R&D, production and promotion efforts on high-value-added products with specialty and new products as a percentage of synthetic resins reaching 61.1% and differential ratio of synthetic fiber reaching 88.2%. We implemented differentiated marketing strategies through bringing our advantages in distribution network into full play.