Re­finer­ies help Sinopec defy oil drop

China Daily (Canada) - - LIFE - By DUXIAOYING dux­i­aoy­ing1@ chi­ By LYU CHANG lyuchang@chi­

US elec­tric au­tomaker Tes­laMo­tors Inc plans to open at least 10 new­stores this year in China, which re­cently be­came En­ergy gi­antits sec­ond-largestChina Petroleum mar­ket& Chem­i­calafter Corp,the Unit­ed­bet­ter knownS­tates as in Sinopec,the first has quar­ter de­fied of global2016, low with oil a and growth gas prices,rate of as mor­eit saw thana 206 300 per­cent per­cent, surgea se­nior in net of­fi­cial profit of due Tesla to toldits re­fin­ing China Daily mar­gins onWed­nes­day.dur­ing the first quar­ter“We of are the very year. con­fi­dent aboutNet prof­i­tour fu­ture jum­pedin al­mostThe de­vel­op­ment$1 bil­lion duringof our busi­ness­the first threeis sus­tain­able,” months, saida huge Zhu im­prove­men­tXiao­tong, pres­i­dent com­paredof with Tesla an China. 84.6 per­cent drop logged in the Zhu same said pe­ri­odthat the last last year. cou­ple Rev­enueof years at has Asia’s seen a big­gest sig­nif­i­cant oil re­finer change­grew 153.4in per­cent pub­lic to per­cep­tions13.1 bil­lion yuan, to­ward com­pared elec­tric with cars a in 79.2 China. per­cent fall in the first “Peo­ple’sthree months in­terestof the ModelThe com­pa­nyS two years said ago the ris­ing was based profit on froma sen­seits oil-re­finingof cu­rios­ity. ac­tiv­i­tiesNow Tesla had buy­ers off­set are losses very from ra­tio­nal,its up­streamthey want busi­ness­esa car that such­can as ful­fil­loil ex­plo­rationtheir trav­elin­gand pro­duc­tion­needs,” he said.— con­di­tions also hit­ting “The many trans­for­ma­tionof its ri­vals hard is af­ter vi­tal fallingas de­man­doil price­sis now wiped much out more gains. sus­tain­able,” Zhu added. China Na­tional Petroleum Corp With fell strong­into a net pol­icy loss sup­port,of 13.8 China’s new-en­ergy ve­hi­cles sec­tor recorded an ex­plo­sive growth last year. The coun­try pro­duced 340,471 NEVs and sold 331,092, an in­crease of 330 per­cent and 340 per­cent re­spec­tively from the pre­vi­ous year, data from the China As­so­ci­a­tion of Au­to­mo­bile Man­u­fac­tur­ers showed.

The au­tomaker does not re­lease its sales in any sin­gle mar­ket.

Glob­ally, it de­liv­ered 14,820 bil­lion­cars in yuan the ($2.13first quar­ter, bil­lion) upin the about quar­ter,50 from per­cent net profit year-onyear.of 6.15 bil­lionIt aims yuanto de­liver dur­ing 80,000the sameto 90,000 pe­riod cars last year, glob­ally ac­cord­ing this year. to a fil­ing to the stock ex­changeTesla’s in con­fi­denceHong Kong. in the Chi­naIt was mar­ket­the com­pany’sis also due first to net strong loss gov­ern­mentsince list­ing sup­ the Shang­haiBoth cen­tral bourse and in 2007.lo­cal gov­ern­ments China Na­tion­al­have of­fered Off­shore pref­er­en­tial Oil Corp, poli­ci­es­the coun­try’swith re­gard top to off­shoreNEVs. For oil ex­am­ple,and gas pro­ducer, Shang­hai of­fers free li­cense plates for sev­eral NEV mod­els, in­stead of the bid­ding pol­icy for ga­so­line ve­hi­cles.

On Tues­day, Tesla China said the com­pany’s mod­els had once again been ap­proved for free li­cense plates by the Shang­hai trans­porta­tion au­thor­ity.

The Shang­hai gov­ern­ment re­news its list of au­tomak­ers el­i­gi­ble for free NEV li­cense plates an­nu­ally. This year’s al­solist re­port­ed­was an­nounced­lower rev­enues sev­eral for days the ago. pe­riod, cit­ing the sharp de­clineTesla al­soin in­ter­na­tion­alplans to build oil a prices. fac­tory in China. At the end of last Lin year, Bo­qiang, Tesla di­rec­torCEO Elonof the Musk China said Cen­terthat the for com­pa­nyEn­ergy Econ­o­my­planned to Re­search­build a fac­to­ryat Xi­a­men in China Univer­sity,in three years, said with­out­that CNPC pro­vid­ing and CNOOC,de­tails such whichas are the heav­ily lo­ca­tion. de­pen­dent on their strug­glingMusk has up­stream­said on many­busi­nesses, oc­ca­sions were that hit Tesla’sthe most vi­sion by is low crude prices.

For petro­chem­i­cal com­pa­nies such as Sinopec, how­ever, he said fall­ing oil prices low­ered the cost for re­fin­ing, bring­ing higher re­turns.

He now ex­pects prices to rise af­ter two years of falls, as the global oil glut is grad­u­ally eased.

“For one thing, pro­duc­ers are pulling back or writ­ing off in­vest­ment in re­sponse to lower prices,” he said. “On the other hand, once global de­mand out­paces sup­ply, it’s only a mat­ter of time be­fore prices re­cover.”

With cur­rent oil prices just above $40 a bar­rel, Lin pre­dicted that as long prices con­tinue ris­ing, re­sults of “three bar­rels of oil three oil ma­jors (trio)” in the sec­ond quar­ter “will cer­tainly be bet­ter”.

“There are signs of a price re­bound as pro­duc­tion de­clines in the United States and pro­duc­ers cut out­put. I see no rea­son why the oil prices can­not rise to $50 a bar­rel by the end of this year,” he said.


China Petroleum & Chem­i­cal Corp em­ploy­ees in­spect nat­u­ral gas pipe­lines in Zibo, Shan­dong prov­ince. Sinopec’s profit jumped to $1 bil­lion dur­ing the first quar­ter of this year.

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