Oil hikes hit FPC and Sinopec on profits in 1Q 2006.

(From Chemical Business NewsBase - Chemical Business (India))

Sinopec and Formosa Plastics Corp (FPC) posted reduced profits in 1Q 2006 in view of escalating crude oil prices. Sinopec's net profits in 1Q 2006 dropped 3.6% to RMB Yuan 9.29 bn ($1.16 bn) in contrast to a 30.5% rise in operational income for the quarter due to strong demand for petrochemical and crude oil products. Government price controls on gasoline, diesel and other refined product made it hard for the company to pass record crude prices. Production of ethylene increased by 35% in 1Q 2006 compared to the same period in 2005, while synthetic production rose 23.29%. The petrochemicals division has …