Sinopec Q2 net jumps 22 pct on improved refining margins
HONG KONG, Aug 25 (Reuters) - Asia's largest refiner Sinopec Corp posted a 22 percent rise in second-quarter net profit, helped by better refining margins after China introduced measures to let domestic fuel prices follow the international market more closely.
Net profit at Sinopec rose to 13.58 billion yuan ($2.22 billion) in April-June from 11.09 billion yuan a year earlier, according to Reuters calculations based on first-half results released through the Shanghai stock exchange on Sunday. The figure lagged an average forecast of 15.23 billion yuan by five analysts polled by Thomson Reuters.
China implemented a more flexible fuel pricing mechanism in March, the first major revamp in four years, to help avoid fuel shortages and tame consumption. However, Chinese refiners still cannot fully pass on higher crude costs to consumers because the government controls oil prices to help curb inflation.