BEIJING, Sept. 16 /Xinhua-PRNewswire/ -- In the first half of 2008, Sinopec has borne huge losses in refined oil
( http://www.industry-raw-materials.com/ ) as a result of the sharply rising price of crude oil. Chairman of Sinopec, Su Shulin said: "This is the most difficult year, but not the worst, the most difficult period will be the fourth quarters." He pointed out that Sinopec will face financing problems in the second half of 2008.
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Su Shulin, Chairman of Sinopec, said the grim operating situation will greatly affect the development of the company when interviewed by a reporter from tootoo.com, with the fourth quarter will be the most difficult period. However, the Government has decided to continue to subsidize in the third quarter.
Su Shulin told the reporter from tootoo.com that facing the difficulties Sinopec should "tighten their belts" and can not blindly rely on state subsidies. Sinopec is planning to reduce investment in the second half of 2008 to 8.5 billion Yuan. In addition Sinopec will strictly control the cost.
He also pointed out that the Government is always concerned about Sinopec’s business. Since the fourth quarter of last year the Government has repeatedly acted on the company’s reports and introduced a number of policies to support the development of the company, such as increased oil prices ( http://www.industry-raw-materials.com/products/ ) and so on.
As for the investment projects of the last four months, said Su, Sinopec will further strengthen the investment control.
Finally, he said, China Petrochemical will strive to reduce the annual cost of more than 3.4 billion Yuan.