China Corporate News: Sinopec Zhenhai, China's Most Profitable Refiner, Posts ¥423m Loss in 1H

Sinopec Zhenhai, China's Most Profitable Refiner, Posts ¥423m Loss in 1H
Sinopec Zhenhai Refining & Chemical Co, a Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386) subsidiary which was once China's most lucrative refinery, said its refining business lost ¥423 million in 1H 2012 as international crude oil prices rose before falling. The company buys crude two months in advance while domestic refined oil is priced based on international prices in the previous month. China's petrochemical industry's profits slid 13.6% year on year in January-April, and 16.9% of industry players reported losses.

PetroChina Pulls Out of Iranian Project
PetroChina Co (NYSE: PTR, SHA: 601857, HKG: 0857) has withdrawn from the South Pars project in Iran, Iranian media reported. PetroChina and the Iranian government signed a $4.7 billion deal in 2009 to develop the 11th phase of the project, replacing France's Total SA (NYSE: TOT) which Iran said had delayed operating the project. Now PetroChina has been accused of delaying the project for 1,130 days and has itself been replaced by an Iranian company, Iran's Mehr News Agency said.

China Rare Earth Forecasts Loss for 1H on Lower Prices
China Rare Earth Holdings Ltd (HKG: 0769) said it might post a loss for 1H 2012 as rare earth prices continued on a downward trend during the period. The company's net profit surged 410% in 1H 2011 when prices soared.

China Cosco Forecasts 50% Drop in 1H Earnings
China Cosco Holdings Co (SHA: 601919, HKG: 1919), the nation's largest shipper, said its 1H net profit would likely fall over 50% from the same period a year earlier due to overcapacity in the global shipping market, slack demand for dry bulk cargo services and higher fuel prices.

Shenhua Energy Builds ¥24b Project in Chongqing
China Shenhua Energy Co (SHA: 601088, HKG: 1088), the nation's biggest coal producer, said construction on a ¥24 billion complex for a power plant and coal storage facility has begun in Chongqing, a provincial level megacity of 32 million residents in southwestern China.

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