China Petroleum & Chemical Corp. may post a loss in the third-quarter of this year if the country scraps a 75 percent refund on oil import taxes paid to the company and PetroChina Co...
China Petroleum & Chemical Corp. may post a loss in the third-quarter of this year if the country scraps a 75 percent refund on oil import taxes paid to the company and PetroChina Co., Goldman Sachs Group Inc. said.
Management at Sinopec, as Asia's largest refiner is known, has indicated the state hasn't made a final decision on the compensation, Goldman analysts wrote in a report today.
Analyst and media reports suggest China may end oil-import subsidies to state refiners after last month's fuel price increase. China has paid subsidies to Sinopec and PetroChina for crude imports since April to pare losses from selling gasoline and diesel below cost as crude-oil costs climb to records.
Huang Wensheng, Sinopec's Beijing-based spokesman, wasn't immediately available to comment. PetroChina hasn't received any notice about a cut in the refund, Beijing-based spokesman Mao Zefeng said today, declining to comment further.
Sinopec fell to the lowest in more than three months in Shanghai trading, dropping as much as 6.5 percent to 9.06 yuan. PetroChina dropped to a record low of 14.04 yuan. Sinopec dropped 0.3 percent in Hong Kong, where PetroChina was 0.8 percent lower.
