Nearly 50% of Oil Companies' Profits in 2010 3 Why Big Giants Cry

China Guangwang Beijing October 17th According to China Voices "news and newspaper abstracts," the State-owned Assets Supervision and Administration Commission of the State Council recently released the "Report on the Operation of Central Enterprises in 2010": China's petroleum and petrochemical enterprises last year (2010) revenue and profit growth Both are more than 40%. Some people questioned whether the profits of petroleum and petrochemical enterprises have risen sharply. Why are refiners still calling for losses? Experts suggest that the cost of domestic oil companies should be transparent.

According to statistics from the State-owned Assets Supervision and Administration Commission of the State Council, the income scale and economic efficiency of China's three major petroleum and petrochemical enterprises increased significantly in 2010. Operating income and net profit increased by 43.4% and 47% respectively from the previous year. Zhou Dadi, director of the Energy Research Institute of the China Energy Research Institute, believes that profit growth is mainly due to the rapid growth in domestic demand last year and the 15% increase in international oil prices.

Zhou Dadi: Our country has seen a significant increase in the domestic refined oil consumption in 2010 compared to 2009, and the business scale has been expanded. This is an important factor. In addition, international crude oil and refined oil prices have risen by a very large one.

Although the oil industry achieved a net profit of more than RMB 270 billion in the past year, the sound of losses from refiners has never stopped. According to statistics, last year's domestic oil price was adjusted four times, of which three were raised and one was lowered. This increase has brought pressure on the cost of living in the oil industry and private car owners, such as the taxi industry. This has led many cities to subsidize the related oil industry. Faced with questions from the public, Zhou Dadi believes that high profits of petroleum and petrochemical companies are determined by the characteristics of the industry.

Zhou Dadi: It is difficult for us to demand that the oil industry's profit margins and other industry profit margins be average. Because oil is a high-input, high-risk, high-return industry, this is a long-term ubiquity in the energy industry.

Lin Boqiang, director of the Energy Research Center at Xiamen University, believes that despite the truth, the questioning of the people is not unreasonable. The domestic oil companies need more transparent costs.

Lin Boqiang: At present, it is about 55% from the international market. When it comes to international standards, the people have no opinion. However, the other 45% are domestically produced. The fees and charges are the same as international charges. What kind of intermediate taxes and fees? Relationships and how costs are calculated. If this aspect is more transparent in the future, the contradictions on both sides will be easier to make clear.