The company - listed on the Hong Kong, London and New York stock exchanges - posted net profits of 4.504 billion yuan (US$544 million) during the period, down 4.007 billion yuan (US$484 million) from a year earlier, it said in a statement.

Li Yizhong, chairman of Sinopec, attributed the profit slump to the stagnated global oil and chemical market and challenges brought by China's entry to the World Trade Organization last December.

The company's net profits during the second quarter of this year amounted to 4.402 billion yuan (US$532 million), up from 102 million yuan (US$12 million) during the first quarter.

The company said its turnover during the first half of this year declined by 12.28 percent year on year to 140.628 billion yuan (US$16.984 billion).

"However, we are confident of our performance during the second half of this year based on our continuous cost-cutting and market expansion strategy as well as China's sustainable economic growth," Li said yesterday.

The company said it cut its operating costs by 1.259 billion yuan (US$152 million) during the first half of this year.

Sinopec aims to produce 19.15 million tons of crude oil during the second half of this year, compared with 133.9 million barrels (a barrel equals to 0.136 ton) in the first half, it said.

Sinopec plans to sell 35 million tons of refined oil in China in the first half of this year, up from 34.07 million tons in the first half, it said.

(China Daily August 20, 2002)