Sinopec estimates a 50% decrease in net profit in Q1

China Petroleum and Chemical Corp (Sinopec)<600028><386>, the leading oil company in the country, forecasted its net profit to fall at least 50% in the first quarter of 2008, according to the company's statement with the Shanghai Stock Exchange.

Sinopec ascribed the decrease to the surging crude oil price in the global market and the government's tight control on the prices of oil products in the domestic market, which had brought huge losses to its refinery business.

However, the company still adopted various measures to ensure the domestic oil supply in line with the government's efforts to stabilize the domestic market.

The exact profit figures in the first three months will be disclosed in its quarterly report which will be released soon. Sinopec reported a net profit of RMB 19.418 billion, or RMB 0.224 per share, during the same period last year.

Chinese government has granted Sinopec a rebate on imports of 500,000 ton of gasoline and 1.5 million tons of diesel from Apr. 1 to Jun. 30 this year.

The company's share price has fallen more than 55% since the start of this year.