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Sinopec (SNP) Slides Slightly After Earnings Decline in Q3
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China Petroleum & Chemical Corporation , also known as Sinopec, declined marginally after reporting lower year-over-year earnings for the third quarter of 2021 on Oct 28.
The company reported third-quarter 2021 earnings per American Depositary Receipt (ADR) of $2.64, declining from the year-ago quarter earnings of $5.54. The lower profit was owing to decreased crude production in the overseas market. This was offset partially by higher commodity prices and throughput volumes.
Revenues, however, improved 52.4% year over year to $114,618 million.
China Petroleum & Chemical Corporation Price, Consensus and EPS Surprise
Like Sinopec, PetroChina Company Limited , another major energy player in China, reported lower year-over-year earnings per share in the third quarter.
Operational Performance
Exploration and Production: During the nine-month period ending Sep 30, 2021, Sinopec’s crude oil production decreased almost 1% year over year to 208.65 million barrels. Although oil production in the domestic market almost remained flat, overseas volumes slipped 7.9% year over year to 22.06 million barrels.
Natural gas volumes increased 13.7% year over year to 877.85 billion cubic feet in the same period. Total oil and gas production rose 4.6% year over year to 355.01 million barrels of oil equivalent.
For the nine-month period ending Sep 30, the company’s average realized oil price surged to $60.94 per barrel from $38.24 a year ago. Realized natural gas price recovered 26.7% from $5.32 per thousand cubic feet to $6.74.
Segmental earnings before interest and taxes (EBIT) for the first nine months of 2021 were recorded at 10.904 billion yuan, declining from 13.16 billion yuan in the year-ago period. Lower crude production in the overseas market hurt the segment.
Refining: The company’s Refining business recorded refinery throughput of 190.73 million tons (up 9.3% year over year). It also produced approximately 108.60 million tons of petroleum products, representing a 3.2% improvement from the first nine months of 2020.
Due to higher throughput volumes, the segment reported EBIT for the first nine months of 2021 at 54.268 billion yuan, reflecting an improvement from the year-ago quarter’s 31.55 billion yuan.
Marketing and Distribution: The Marketing and Distribution segment sold 166.59 million tons of refined oil products, reflecting a 2.7% year-over-year improvement.
From this segment, the company generated EBIT of 24.316 billion yuan, up from the year-ago period’s 18.24 billion yuan owing to higher sales volume of refined oil products.
Chemicals: During the nine-month period ending Sep 30, 2021, ethylene production increased 10.2% year over year to 9,752 thousand tons from 8,850 thousand tons.
Production of Synthetic resin was 14,002 thousand tons as compared with 12,773 thousand tons in the year-ago period.
The segment recorded an EBIT of 23.064 billion yuan for the first nine months of 2021, skyrocketing from 4.22 billion yuan in the year-ago period owing to higher production volumes of ethylene.
Capital Expenditure
Capital expenditures in the first nine months of 2021 totaled 89.7 billion yuan. Out of this, 38.6 billion yuan was spent on exploration and production projects. Sinopec spent 10.6 billion yuan on the Refining segment, while the Chemical segment was allocated 29.7 billion yuan. The company had set aside 9.9 billion yuan for the Marketing and Distribution segment.
Finds Shale Oil
In a separate release, the company announced the exploitation of shale oil in the Shengli oilfield. The company estimated the initial geological reserves of shale oil in the field at 458 million tons.
Zacks Rank & Stocks to Consider
The company carries a Zacks Rank #3 (Hold). Better-ranked stocks from the energy space include Whiting Petroleum Corporation and APA Corporation (APA - Free Report) . Both the 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.
APA Corporation has seen upward earnings estimate revisions for 2021 in the past 30 days.
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Sinopec (SNP) Slides Slightly After Earnings Decline in Q3
China Petroleum & Chemical Corporation , also known as Sinopec, declined marginally after reporting lower year-over-year earnings for the third quarter of 2021 on Oct 28.
The company reported third-quarter 2021 earnings per American Depositary Receipt (ADR) of $2.64, declining from the year-ago quarter earnings of $5.54. The lower profit was owing to decreased crude production in the overseas market. This was offset partially by higher commodity prices and throughput volumes.
Revenues, however, improved 52.4% year over year to $114,618 million.
China Petroleum & Chemical Corporation Price, Consensus and EPS Surprise
China Petroleum & Chemical Corporation price-consensus-eps-surprise-chart | China Petroleum & Chemical Corporation Quote
Like Sinopec, PetroChina Company Limited , another major energy player in China, reported lower year-over-year earnings per share in the third quarter.
Operational Performance
Exploration and Production: During the nine-month period ending Sep 30, 2021, Sinopec’s crude oil production decreased almost 1% year over year to 208.65 million barrels. Although oil production in the domestic market almost remained flat, overseas volumes slipped 7.9% year over year to 22.06 million barrels.
Natural gas volumes increased 13.7% year over year to 877.85 billion cubic feet in the same period. Total oil and gas production rose 4.6% year over year to 355.01 million barrels of oil equivalent.
For the nine-month period ending Sep 30, the company’s average realized oil price surged to $60.94 per barrel from $38.24 a year ago. Realized natural gas price recovered 26.7% from $5.32 per thousand cubic feet to $6.74.
Segmental earnings before interest and taxes (EBIT) for the first nine months of 2021 were recorded at 10.904 billion yuan, declining from 13.16 billion yuan in the year-ago period. Lower crude production in the overseas market hurt the segment.
Refining: The company’s Refining business recorded refinery throughput of 190.73 million tons (up 9.3% year over year). It also produced approximately 108.60 million tons of petroleum products, representing a 3.2% improvement from the first nine months of 2020.
Due to higher throughput volumes, the segment reported EBIT for the first nine months of 2021 at 54.268 billion yuan, reflecting an improvement from the year-ago quarter’s 31.55 billion yuan.
Marketing and Distribution: The Marketing and Distribution segment sold 166.59 million tons of refined oil products, reflecting a 2.7% year-over-year improvement.
From this segment, the company generated EBIT of 24.316 billion yuan, up from the year-ago period’s 18.24 billion yuan owing to higher sales volume of refined oil products.
Chemicals: During the nine-month period ending Sep 30, 2021, ethylene production increased 10.2% year over year to 9,752 thousand tons from 8,850 thousand tons.
Production of Synthetic resin was 14,002 thousand tons as compared with 12,773 thousand tons in the year-ago period.
The segment recorded an EBIT of 23.064 billion yuan for the first nine months of 2021, skyrocketing from 4.22 billion yuan in the year-ago period owing to higher production volumes of ethylene.
Capital Expenditure
Capital expenditures in the first nine months of 2021 totaled 89.7 billion yuan. Out of this, 38.6 billion yuan was spent on exploration and production projects. Sinopec spent 10.6 billion yuan on the Refining segment, while the Chemical segment was allocated 29.7 billion yuan. The company had set aside 9.9 billion yuan for the Marketing and Distribution segment.
Finds Shale Oil
In a separate release, the company announced the exploitation of shale oil in the Shengli oilfield. The company estimated the initial geological reserves of shale oil in the field at 458 million tons.
Zacks Rank & Stocks to Consider
The company carries a Zacks Rank #3 (Hold). Better-ranked stocks from the energy space include Whiting Petroleum Corporation and APA Corporation (APA - Free Report) . Both the 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.
APA Corporation has seen upward earnings estimate revisions for 2021 in the past 30 days.