SINOPEC suffters huge losses from soaring oil prices!

SINOPEC suffters huge losses from soaring oil prices!
Mar 10, 2008 02:24
KATRINA Points: Join Date: Nov 29, 2004 Status: offline	Due to the high oil prices and deficient domestic oil pricing system, SINOPEC and CNPC have suffered huges losses. Zhou Yuan, vice president of SINOPEC said last week that SINOPEC lost about 2000 yuan when selling one ton of processed oil and they suffered more losses from diesel oil. CNPC is in the same situation with SINOPEC. An insider of CNPC revealed last year that they lost more than 1000 yuan when selling a ton of refined oil. At that time, the oil prices in international market didn't reach 100 dollars. However, CNPC has suffered light losses compared with SINOPEC. According to the report, SINOPEC has received a large amount of subsidies from the government. But Zhou Yuan, the vice president, said that he read the report but didn't reveal whether they have received or not.

Mar 10, 2008 02:24

KATRINA
Points:
Join Date: Nov 29, 2004
Status: offline

Due to the high oil prices and deficient domestic oil pricing system, SINOPEC and CNPC have suffered huges losses. Zhou Yuan, vice president of SINOPEC said last week that SINOPEC lost about 2000 yuan when selling one ton of processed oil and they suffered more losses from diesel oil. CNPC is in the same situation with SINOPEC. An insider of CNPC revealed last year that they lost more than 1000 yuan when selling a ton of refined oil. At that time, the oil prices in international market didn't reach 100 dollars. However, CNPC has suffered light losses compared with SINOPEC.

According to the report, SINOPEC has received a large amount of subsidies from the government. But Zhou Yuan, the vice president, said that he read the report but didn't reveal whether they have received or not.

Mar 11, 2008 03:30	#1
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: Offline	Yesterday, the vice president of NDRC (Chinees National Development and Reform Commission) said that China doesn't suffer huge losses. I am confused. What the government said is not in accordance with SINOPEC. What is wrong? Who should we believe?

Mar 13, 2008 17:01	#2
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	if it is listed company, audited reports data and strictly requied disclosure count. however, mainland mkt has not totally integrated with international mkt plus accounting/auditing principles do not rhyme with general accpeted ones. So sometimes corp news lacks integrety, transparency and timeliness.

Mar 13, 2008 23:26	#3
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	I'm not going to ask direct questions about SINOPEC or CNPC in regards to accounting procedures but do the foreign corporations coming into China have more strict accounting rules to follow than Chinese owned companies?

Mar 14, 2008 19:20	#4
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Gary, a tough guy, pls don't give hard times. I have no idea how US big corp. makes book for thier sub. in china. Perhaps US GAAP applies. GM has a big mordern plant in Shanghai Pudong. You can check GM filing to see how they book their overseas sub.

Mar 17, 2008 22:15

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: Offline

"I'm not going to ask direct questions about SINOPEC or CNPC in regards to accounting procedures but do the foreign corporations coming into China have more strict accounting rules to follow than Chinese owned companies?"

Gary, I read some reports that said China has improved it rules on foreign investment. It shows that China has changed its policy to bring in foreign investment selectively not blindly. What's more, the news reported that some foreign companies in China have caused serious environmental problems. This forces China to rethink about its policy.

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