NEW YORK (MarketWatch) -- China Petroleum & Chemical Corp., Asia's biggest refiner, said Sunday that its first-half net profit increased sharply, exceeding analyst expectations.
The company, known as Sinopec, said its net profit for the six months ended June 30 was 33.25 billion Chinese yuan, or about $4.89 billion, compared with 7.68 billion yuan in the same period a year ago.
The result exceeded the average of 26.5 billion yuan expected by analysts surveyed by Dow Jones Newswires.
Sinopec Chairman Su Shulin said that the substantial increase in profit for the first half of 2009 "is primarily a reflection of weaker comparatives" from the same period of last year. China increased government-controlled domestic fuel prices in 2009.
Sinopec also said that its turnover, other operating revenues and other income fell by 30.2% to 534 billion yuan from a year ago.
The company said its board of directors proposed a half year dividend of 0.07 yuan per share with the total dividend amount reaching 6.069 billion yuan.
"Looking into the second half of this year, the state will continue applying the proactive fiscal policy and relatively easy monetary policy, further improving and implementing the integrated economic stimulus package, and increasing domestic demand," Sinopec said in a statement.
"The Chinese economy is expected to maintain relatively fast growth," the company said. International crude oil prices in the second half are expected to be higher than the first half, fluctuating within a narrow range, Sinopec said.
Sinopec also said it expects its net profit for the first three quarters ending Sept. 30 to increase more than 50% from a year earlier, according to a report by Dow Jones Newswires.
The company plans to present its 2009-2011 development plan Monday at a press conference in Hong Kong, the report also said.