Chinese oil producers pump cash back to Beijing despite losses

Sinopec and PetroChina post first red ink and cut capex but still pay dividends

Sinopec's revenues tumbled during the first half of 2020 as the coronavirus pandemic undermined demand for oil products. © Reuters

KENJI KAWASE, Nikkei Asian Review chief business news correspondent

September 1, 2020 15:03 JST

HONG KONG -- China's major state oil companies are keeping up their dividend payments despite incurring large losses as the coronavirus pandemic undercut the prices and sale of their products.

For China Petroleum & Chemical (Sinopec) and PetroChina, the net losses -- a combined 52.86 billion yuan ($7.72 billion) for the first half of 2020 -- are their first as listed companies and compare with posted profits of 59.76 billion yuan a year earlier.