Evaluation Of Sinopec Financial Risk Based On International Crude Oil Price Fluctuation

Sinopec’s main business focuses on refining and chemical plate, and the continuously rising international crude oil price has the greatest impact on the refining and chemical sector.Under the environment of the continuously rising of the international oil price, Sinopec is the most affected among the three domestic oil "giant", and the sharp fluctuation of the international oil price mainly influence the financial of the enterprise. Currently, the reasons of effect on Sinopec financial from international crude oil price mainly include two aspects as following:Firstly, the domestic oil price is in line with the international oil price. When the international oil price going up, the domestic oil price must be rise at the same time. Secondly, due to controlling the refined oil prices strictly by our country, and as a state-owned enterprise, Sinopec need to take certain social responsibility, thus making Sinopec cannot raise fuel prices at will, leading to the huge losses of Sinopec’s refining plates, affecting the financial of Sinopec. Therefore, the evaluation of the Sinopec financial risk which based on the international oil price is studied in this paper.Firstly, this paper expounds on the related concepts of risk, financial risk, then analyses the Sinopec’s business and financial characteristics deeply. According to Sinopec’s survival ability, asset management ability, profitability and development capacity, selecting the appropriate financial risk evaluation index system. Using financial data of Sinopec from2007to2012, combined with fuzzy comprehensive evaluation model to evaluate the financial risk of Sinopec in2007～2012.Finally, we put forward the corresponding financial risk management strategies according to the results of comprehensive evaluation. The following conclusions are included in this paper:(1) According to the overall financial risks, the financial risk in2007～2012of Sinopec is mainly between0.2and0.8, two thirds are between0.3and0.6.Therefore, the concentration of financial risk of Sinopec in2007-2012is high;(2) According to the value of financial risk, the value in2008is the highest, the smallest is in2010, which indicates that the financial risk of Sinopec is affected by the international oil price fluctuations;(3) Put forward a number of suggestions for Sinopec financial risk management on the basis of financial risk situation.