Sinopec Denies Xinhua Report Of 38% Rise In 2007 Net Profit
China Petroleum & Chemical Corp. (SNP) spokesman Huang Wensheng Friday denied a report by the official Xinhua News Agency that the company's net profit last year rose 38%.
"The report is wrong. We are still in a process of auditing our performance results and will publish the annual performance report at the end of March or early April," Huang told Dow Jones Newswires. He declined to elaborate on the 2007 performance of the company, which is known as Sinopec and is Asia's largest refiner by capacity.
At 0330 GMT, Sinopec shares were trading at HK$11.42, up 2.9%, also helped by a report the company will get a state subsidy for its refining losses in 2007. The main index in Hong Kong was up 1.7%.
The Xinhua report Friday quoted Sinopec Senior Vice President Cai Xiyou as saying the company's net profit last year rose to CNY70 billion ($9.6 billion), from CNY50.66 billion in 2006.
Cai attributed the higher profit to cost controls and technological innovation, said Xinhua.
Huang said Sinopec so far hasn't received any government subsidy for its refining losses.
Sinopec received government subsidies of CNY5 billion in 2006 and CNY10 billion in 2005, which helped it recover some of its refining losses and continue to post net profit.
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