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Sinopec (SNP), PetroChina (PTR) Expect Turnaround in H1 Profit

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China Petroleum & Chemical Corporation (SNP - Free Report) and PetroChina Company Limited (PTR - Free Report) are expecting significant improvements in their respective net profit for the first half of this year.

Improved oil prices and a recovery in the global economy, thanks to the rolling out of coronavirus vaccines on a massive scale, primarily aided the Chinese energy giants’ net income. China Petroleum & Chemical Corporation, also known as Sinopec, projects net profit attributable to equity shareholders for the first half of 2021 in the band of RMB 36.5 billion to RMB 38.5 billion. This represents a turnaround from a loss of RMB 22.9 billion in the first half of 2020. The company’s net income, attributable to equity shareholders, of RMB 31.3 billion for the first half of 2019 is also lower than the projected range for the comparable period of this year.

PetroChina, on the other hand, expects its net profit attributable to equity holders, for the first half of 2021, to improve by RMB 75 billion to RMB 90 billion in comparison with the same period of the last year. Thus, the company is expecting a turnaround to profit from loss.

Currently, Sinopec carries a Zacks Rank #2 (Buy), while PetroChina sports a Zacks Rank #1 (Strong Buy). Two other prospective players in the energy sector include Whiting Petroleum Corporation (WLL - Free Report) and Continental Resources, Inc. (CLR - Free Report) . Both stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

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