Net income rose to 36.02 billion yuan (US$4.4 billion) from 22.4 billion yuan in 2003, the company known as Sinopec said in a statement to the Shanghai Stock Exchange.
Sinopec, which produces 66% of China’s fuels, increased its sales of fuels, plastics and paints as rising incomes boost spending on cars, homes and electrical appliances. Total sales rose 38% to 619.8 billion yuan from 449 billion yuan a year ago.
Sinopec's 2004 average oil price rose 21% to US$33.28 per barrel, with it crude oil production rising 1.2% to 274 million barrels and gas output increasing 10% to 207 billion cubic feet.
Its oil processing increased by 14% to 133 million tonnes and the company produced 22% more diesel, 8.5% more petrol and 20% more kerosene. Total fuel sales, including petrol and diesel, rose 25% to 94.6 million tonnes, while retail fuel sales surged 37% to 53.3 million tonnes.
The company will pay a final dividend of 0.08 yuan a share, taking the total payout last year to 0.12 yuan a share.
Higher oil prices – which rose to a record US$57.60 per barrel in New York on March 17 - aren't expected to stop China's oil demand from growing this year, with the Paris-based International Energy Agency predicting China’s oil demand may rise 7.9% to 6.88 million barrels of oil per day during 2005.
Sinopec and rival PetroChina Co, Asia's biggest oil company, are benefiting as vehicle fuel consumption rises along with automobile sales, which increased 16% last year.
