China Petroleum and Chemical Corporation , which is also known as Sinopec, reported net profit of 19.9 billion yuan ($3.0 billion) or 0.151 yuan per diluted share for the first half of 2016. The bottom line came in below the year-ago profit level of 25.4 billion yuan ($4.14 billion) or 0.194 yuan per diluted share.
Operational Performance
During the first half of 2016, Sinopec’s crude oil production decreased 11.4% year over year to 154.17 million barrels. Nonetheless, natural gas volumes increased 10% year over year to 388.69 billion cubic feet in the same period. Domestic crude oil production declined 13% year over year to 128.38 million barrels, while overseas volumes slipped 3.1% year over year to 25.79 million barrels. Total oil and gas production fell 6% year over year to 219 million barrels of oil equivalent.
The company’s Refining business recorded a 2.5% year-over-year decline in refinery throughput to 115.9 million tons. It also produced approximately 73.26 million tons of petroleum products, down 2% from the prior-year period.
The Marketing and Distribution segment sold 97.17 million tons of refined oil products, up 4.52% year over year.
Capital Expenditure
Capital expenditures for the first half of 2016 totaled 13.474 billion yuan. Out of this, 5.168 billion yuan was spent on exploration and production projects. Sinopec spent 2.774 billion yuan on the Refining segment, while the Chemical Business segment was allocated 2.44 billion yuan. The company had set aside 2.61 billion yuan for the Marketing and Distribution segment.
A total of 482 million yuan was used for Corporate and Other purposes, such as construction of R&D facilities and IT projects.
Zacks Rank
Sinopec currently holds a Zacks Rank #2 (Buy). Other well-ranked players from the energy sector that warrant a look include Devon Energy Corporation (DVN - Free Report) , NGL Energy Partners LP (NGL - Free Report) and Enbridge Energy Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy).
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China Petroleum and Chemical Corporation , which is also known as Sinopec, reported net profit of 19.9 billion yuan ($3.0 billion) or 0.151 yuan per diluted share for the first half of 2016. The bottom line came in below the year-ago profit level of 25.4 billion yuan ($4.14 billion) or 0.194 yuan per diluted share.
Operational Performance
During the first half of 2016, Sinopec’s crude oil production decreased 11.4% year over year to 154.17 million barrels. Nonetheless, natural gas volumes increased 10% year over year to 388.69 billion cubic feet in the same period. Domestic crude oil production declined 13% year over year to 128.38 million barrels, while overseas volumes slipped 3.1% year over year to 25.79 million barrels. Total oil and gas production fell 6% year over year to 219 million barrels of oil equivalent.
The company’s Refining business recorded a 2.5% year-over-year decline in refinery throughput to 115.9 million tons. It also produced approximately 73.26 million tons of petroleum products, down 2% from the prior-year period.
The Marketing and Distribution segment sold 97.17 million tons of refined oil products, up 4.52% year over year.
Capital Expenditure
Capital expenditures for the first half of 2016 totaled 13.474 billion yuan. Out of this, 5.168 billion yuan was spent on exploration and production projects. Sinopec spent 2.774 billion yuan on the Refining segment, while the Chemical Business segment was allocated 2.44 billion yuan. The company had set aside 2.61 billion yuan for the Marketing and Distribution segment.
A total of 482 million yuan was used for Corporate and Other purposes, such as construction of R&D facilities and IT projects.
Zacks Rank
Sinopec currently holds a Zacks Rank #2 (Buy). Other well-ranked players from the energy sector that warrant a look include Devon Energy Corporation (DVN - Free Report) , NGL Energy Partners LP (NGL - Free Report) and Enbridge Energy Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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