Financial subsidies to Sinopec 12.3 billion palliative.

<P> S on the petrochemical "tonic" 3 billion </ P> <P> Sinopec (600028) and S, Sinopec (600688) today announced their two companies were given financial subsidies to 12.3 billion yuan and 34,118 yuan. .China Petrochemical Corporation said: "This is the company's 2007 annual report and quarterly reports this year, one will be very good news." </ P> <P> subsidies into the annual report and a quarterly </ P> <P> Sinopec announced that .company received subsidies of 12.3 billion, of which 4.9 billion included in the subsidy income in 2007, 7.4 billion included in the first quarter of 2008 income subsidy. .</ P> <P> S on the petrochemical announcement said the company received subsidies to 34,118 million, of which 9,390 million included in the subsidy income in 2007, 24,728 million in the first quarter included income subsidy. .</ P> <P> The sum of financial subsidies by the government and then supply subsidies to Sinopec Group's listed companies, or groups without direct subsidies to the company, Sinopec, said the company is not clear, only that the company has received this .pen subsidies. .</ P> <P> the industry, the financial subsidies were entered last year and a quarterly income subsidy this year, will greatly boost the company's 2007 annual report and quarterly results this year, also in line with reason. .</ P> <P> earlier, in 2005 and 2006, Sinopec Group and Sinopec were given a national financial subsidies. .</ P> <P> policy-related losses is difficult padded </ P> <P> company said international oil prices in recent years, high and volatile, especially since the second half of 2007, international crude oil prices rose sharply. .Domestic prices of refined oil from the tight control, and crude oil prices appear upside down, in part because of the local refineries underemployed or even stop loss, coupled with increased consumption of diesel in winter, causing some parts of the market supply of refined oil. .</ P> <P> order to protect the smooth operation of the oil market, Sinopec and its subsidiaries taken various measures to increase oil production at the same time, high-priced acquisition of the local oil refinery to protect the domestic supply of refined oil market, has made .significant effects, but also resulted in the formation of the petrochemical refining system large losses. .</ P> <P> However, the industry pointed out that, with the upstream edge of the China Petroleum (601857) in the year about 80% of crude oil by the company to provide their own, even so, the refining and marketing segment of the loss is still more than 200 billion ., and most of the purchased Sinopec crude oil, refining segment's loss will be higher. .</ P> <P> Therefore, the source said, 123 billion of financial subsidies can not solve the problem, in the final analysis or to rationalize the price mechanism, but that for the 2007 annual report and quarterly reports this year is still good news. .</ P> <P> Development and Reform Commission raised the fourth quarter of last year, oil prices, but crude oil prices remain high, Sinopec's refining business to make a substantial loss. .Deputy General Manager of Sinopec Group, said Zhou Yuan, when the crude oil price is 100 U.S. dollars / barrel, the Group per 1 ton of gasoline sales losses of up to 2,000 yuan, sales of diesel will lose more. .</ P> <P> policy-related losses not only in the refining segment, also appeared in the refined oil import. .Sinopec in September last year, imports of 60,000 tons of gasoline Organization, Oct. organizations to import 9 tons of diesel and 11 tons of diesel oil by 28.7 months of imports, imports of 423,000 tons in December arrange diesel, and the second half of last year basically stopped steam .diesel exports. .</ P>.