Sinopec Zhenhai Refining & Chemical Co, a top refining unit of China's largest oil producer in terms of sales revenue, reported losses of 423 million yuan ($66.3 million) in its refining business in the first half year, the China Business News (CBN) reported Monday, citing a company executive, Global Times reported.

The Zhejiang Province-based refiner reported net profit of 20 million yuan in its refining business in 2011 and a total profit of 5.85 billion yuan, despite the refining sector suffering losses in the year. An official from Zhenhai Refining declined to comment on the figures, saying that "the whole refining business of Sinopec is suffering."

Li Li, a senior information manager from ICIS C1 Energy, told the Global Times that high crude prices of as much as $120 per barrel in the first quarter this year are the major reason behind refineries' losses, the newspaper said.