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China Petroleum & Chemical Corporation , also known as Sinopec, has gained 5.1% since it reported year-over-year higher first-quarter 2022 results on Apr 27, before the opening bell.
Sinopec reported first-quarter earnings per share of RMB 0.193, higher than RMB 0.155 in a year-ago quarter. Moreover, revenues increased to RMB 771,386 million from RMB 576,559 million in a year-ago quarter.
China Petroleum & Chemical Corporation Price, Consensus and EPS Surprise
The year-over-year higher quarterly results were led by a rise in oil and natural gas production and commodity prices. Improved domestic demand for refined oil products and chemical products also led to the rise.
Operational Performance
Exploration and Production: In the March quarter of 2022, Sinopec’s total crude oil production increased 1% year over year to 69.07 million barrels. Oil production in the domestic market increased 0.6% to 61.60 million barrels and overseas volume jumped 4% to 7.47 million barrels.
Natural gas volume of Sinopec increased 7.7% year over year to 313.94 billion cubic feet in the first quarter. Also, total oil and gas production rose 3.7% to 121.41 million barrels of oil equivalent.
Sinopec’s operating profit – earnings before interest and taxes – at this segment in the March quarter was recorded at RMB 11.5 billion, reflecting a 273.1% surge year over year on higher oil and gas production and realized prices.
Refining: Sinopec’s Refining business recorded refinery throughput of 64.19 million tons (up 2.7% year over year). It also produced 37.36 million tons of petroleum products, reflecting a 4.7% improvement.
Segmental operating profit was recorded at RMB 22.9 billion, reflecting an increment of 15.2% year over year, thanks to higher refinery throughput.
Marketing and Distribution: The Marketing and Distribution segment sold 51.02 million tons of refined oil products, depicting a 1.8% year-over-year decline. Of the total figure, domestic sales volume came in at 41.06 million tons, up 2.6%.
Annualized average throughput was recorded at 3,559 tons per station in the quarter, up from 3,536 tons in the year-ago quarter.
Operating profit at the segment grossed RMB 8.9 billion, depicting an improvement of 5.2% year over year, thanks to higher average throughput per station.
Chemicals: During the first quarter of 2022, the production of ethylene increased 6.7% year over year to 3,606 thousand tons from 3,380 thousand tons. Moreover, the production of Synthetic resin was 4,867 thousand tons compared with 4,787 thousand tons in the year-ago quarter.
Operating profit at the segment was recorded at RMB 1.9 billion, which decreased 79.5% year over year.
Expenses
Sinopec’s total quarterly operating expenses were RMB 738,426 million, higher than RMB 547,548 million a year ago. The energy major’s exploration expenses, including dry holes, were RMB 2,983 million, higher than RMB 2,496 million in the March quarter of 2021.
Capital Expenditure
Capital expenditure in the first quarter totaled RMB 25.38 billion. Of this, 15.25 billion yuan was spent on exploration and production projects. Sinopec spent RMB 6.03 billion on the Refining segment, while the Chemical segment was allocated RMB 2.3 billion. Moreover, in the March quarter, the company had set aside RMB 0.84 billion for the Marketing and Distribution segment.
Zacks Rank & Stocks to Consider
Sinopec currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include ConocoPhillips (COP - Free Report) , Marathon Oil (MRO - Free Report) and Occidental Petroleum (OXY - Free Report) . While ConocoPhillips and Marathon Oil carry a Zacks Rank #2 (Buy), Occidental Petroleum sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. COP has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, ConocoPhillips is likely to see earnings growth of 141.6%.
Marathon Oil is a leading oil and natural gas exploration and production company. MRO has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, Marathon Oil is likely to see earnings growth of 201.3%.
In the United States, Occidental Petroleum is among the largest oil producers. OXY has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, Occidental Petroleum is likely to see earnings growth of 278.8%.
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Sinopec (SNP) Jumps 5.1% as Q1 Earnings & Revenues Rise Y/Y
China Petroleum & Chemical Corporation , also known as Sinopec, has gained 5.1% since it reported year-over-year higher first-quarter 2022 results on Apr 27, before the opening bell.
Sinopec reported first-quarter earnings per share of RMB 0.193, higher than RMB 0.155 in a year-ago quarter. Moreover, revenues increased to RMB 771,386 million from RMB 576,559 million in a year-ago quarter.
China Petroleum & Chemical Corporation Price, Consensus and EPS Surprise
China Petroleum & Chemical Corporation price-consensus-eps-surprise-chart | China Petroleum & Chemical Corporation Quote
The year-over-year higher quarterly results were led by a rise in oil and natural gas production and commodity prices. Improved domestic demand for refined oil products and chemical products also led to the rise.
Operational Performance
Exploration and Production: In the March quarter of 2022, Sinopec’s total crude oil production increased 1% year over year to 69.07 million barrels. Oil production in the domestic market increased 0.6% to 61.60 million barrels and overseas volume jumped 4% to 7.47 million barrels.
Natural gas volume of Sinopec increased 7.7% year over year to 313.94 billion cubic feet in the first quarter. Also, total oil and gas production rose 3.7% to 121.41 million barrels of oil equivalent.
Sinopec’s operating profit – earnings before interest and taxes – at this segment in the March quarter was recorded at RMB 11.5 billion, reflecting a 273.1% surge year over year on higher oil and gas production and realized prices.
Refining: Sinopec’s Refining business recorded refinery throughput of 64.19 million tons (up 2.7% year over year). It also produced 37.36 million tons of petroleum products, reflecting a 4.7% improvement.
Segmental operating profit was recorded at RMB 22.9 billion, reflecting an increment of 15.2% year over year, thanks to higher refinery throughput.
Marketing and Distribution: The Marketing and Distribution segment sold 51.02 million tons of refined oil products, depicting a 1.8% year-over-year decline. Of the total figure, domestic sales volume came in at 41.06 million tons, up 2.6%.
Annualized average throughput was recorded at 3,559 tons per station in the quarter, up from 3,536 tons in the year-ago quarter.
Operating profit at the segment grossed RMB 8.9 billion, depicting an improvement of 5.2% year over year, thanks to higher average throughput per station.
Chemicals: During the first quarter of 2022, the production of ethylene increased 6.7% year over year to 3,606 thousand tons from 3,380 thousand tons. Moreover, the production of Synthetic resin was 4,867 thousand tons compared with 4,787 thousand tons in the year-ago quarter.
Operating profit at the segment was recorded at RMB 1.9 billion, which decreased 79.5% year over year.
Expenses
Sinopec’s total quarterly operating expenses were RMB 738,426 million, higher than RMB 547,548 million a year ago. The energy major’s exploration expenses, including dry holes, were RMB 2,983 million, higher than RMB 2,496 million in the March quarter of 2021.
Capital Expenditure
Capital expenditure in the first quarter totaled RMB 25.38 billion. Of this, 15.25 billion yuan was spent on exploration and production projects. Sinopec spent RMB 6.03 billion on the Refining segment, while the Chemical segment was allocated RMB 2.3 billion. Moreover, in the March quarter, the company had set aside RMB 0.84 billion for the Marketing and Distribution segment.
Zacks Rank & Stocks to Consider
Sinopec currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include ConocoPhillips (COP - Free Report) , Marathon Oil (MRO - Free Report) and Occidental Petroleum (OXY - Free Report) . While ConocoPhillips and Marathon Oil carry a Zacks Rank #2 (Buy), Occidental Petroleum sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. COP has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, ConocoPhillips is likely to see earnings growth of 141.6%.
Marathon Oil is a leading oil and natural gas exploration and production company. MRO has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, Marathon Oil is likely to see earnings growth of 201.3%.
In the United States, Occidental Petroleum is among the largest oil producers. OXY has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, Occidental Petroleum is likely to see earnings growth of 278.8%.