BEIJING Feb 3 China's mining and oil
exploration firms saw sharp increases in profits last year, but
refiners, processors and utilities fared much worse with
government controls over retail fuel and power prices making it
difficult to pass on higher raw material costs.
Total industrial profits rose 25.4 percent in 2011 from a
year earlier to 5.45 trillion yuan ($864.8 billion), the
National Bureau of Statistics said on Friday on its website.
Profits at oil and natural gas exploration companies rose 45
percent, while profits of ferrous metal mining companies surged
53 percent, driven by surging iron ore prices over large parts
of last year.
Profits of companies in the oil refining, coking and nuclear
fuel processing industry tumbled 93 percent in 2011, while those
of power generation and heating firms dropped 11 percent.
Chinese refineries and power producers were not able to
unilaterally set their output prices while their input prices
were subject to market volatility, subjecting them to a profit
The government did not raise fuel and power prices in line
with increases in crude oil and coal costs last year as Beijing
made controlling inflation a top priority.
Top Asian refiner, Sinopec Corp , lost
23.09 billion yuan ($3.66 billion) on refinery throughput of
4.37 million barrels per day from January to September and
PetroChina lost 41.54 billion yuan on crude runs of
2.66 million bpd during the same period.
Huaneng Power International Inc ,
China's largest independent power producer, warned on Monday
that it expected its 2011 profit to fall more than 50 percent
from a year ago.
Chinese state-owned enterprises earned a total of 1.50
trillion yuan in profits last year, up 15 percent from a year
In December alone, all industrial companies made profits of
790.7 billion yuan, up 31.5 percent from a year earlier, it
($1 = 6.3018 yuan)
(Reporting by Aileen Wang and David Stanway, additional
reporting by Jim Bai; Editing by Ken Wills and Chris Lewis)