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Sinopec (SNP) Earnings Improve in Q3, Revenues Down Y/Y
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China Petroleum and Chemical Corporation , also known as Sinopec, reported third-quarter 2016 earnings of $1.26 per ADR, higher than 20 cents reported in the year-ago comparable quarter.
Revenues, however, fell 9.3% year over year to $70,809 million.
Operational Performance
During the nine-month period ending Sep 30, 2016, Sinopec’s crude oil production fell 12.6% year over year to 229.36 million barrels. However, natural gas volumes improved 5.1% to 557.15 billion cubic feet during this period. Domestic crude oil production tanked 14% to 191.26 million barrels, while overseas volumes decreased 4.7% to 38.10 million barrels. Overall total oil and gas production shrunk 8.1% to 322.29 million barrels of oil equivalent.
Realized oil prices during the period were $35.44 per barrel, down almost 28% from the year-ago period, while realized natural gas prices dropped 23% to $5.48 per thousand cubic feet. Due to lower oil & gas prices and the decline in production, the Exploration and Production segment recorded profit of 75,373 million yuan, lower than the year-ago tally of 100,077 million yuan
The company’s refining business recorded refinery throughput of 175.25 million tons (down 1.7% year over year). It also produced approximately 111.02 million tons of petroleum products, which represents a 1.1% dip. Owing to these negatives, the Refining unit’s profit fell to 610,851 million yuan from 710,651 million yuan a year.
The Marketing and Distribution segment sold 145.72 million tons of refined oil products, reflecting a 3.5% year-over-year upside.
Capital Expenditure
Capital expenditure during the first nine months of 2016 totaled 24.969 billion yuan. Out of this, 9.206 billion yuan was spent on exploration and production projects. Sinopec spent 4.995 billion yuan at the Refining segment, while the Chemical Business segment was allocated 3.967 billion yuan. The company had set aside 5.983 billion yuan for the Marketing and Distribution segment. Meanwhile, the company has spent 818 million yuan on its scientific research facilities and IT projects.
Sinopec currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector include Ultra Petroleum Corp. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
Ultra Petroleum is likely to witness year-over-year earnings growth of 148.4% for the current year. Ultra Petroleum sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT Midstream is projected to witness year-over-year earnings growth of almost 14% for the current year. The company carries a Zacks Rank #1.
Helix Energy posted an average positive earnings surprise of 56.42% over the last four quarters. The company has a Zacks Rank #2 (Buy).
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Sinopec (SNP) Earnings Improve in Q3, Revenues Down Y/Y
China Petroleum and Chemical Corporation , also known as Sinopec, reported third-quarter 2016 earnings of $1.26 per ADR, higher than 20 cents reported in the year-ago comparable quarter.
Revenues, however, fell 9.3% year over year to $70,809 million.
Operational Performance
During the nine-month period ending Sep 30, 2016, Sinopec’s crude oil production fell 12.6% year over year to 229.36 million barrels. However, natural gas volumes improved 5.1% to 557.15 billion cubic feet during this period. Domestic crude oil production tanked 14% to 191.26 million barrels, while overseas volumes decreased 4.7% to 38.10 million barrels. Overall total oil and gas production shrunk 8.1% to 322.29 million barrels of oil equivalent.
Realized oil prices during the period were $35.44 per barrel, down almost 28% from the year-ago period, while realized natural gas prices dropped 23% to $5.48 per thousand cubic feet. Due to lower oil & gas prices and the decline in production, the Exploration and Production segment recorded profit of 75,373 million yuan, lower than the year-ago tally of 100,077 million yuan
The company’s refining business recorded refinery throughput of 175.25 million tons (down 1.7% year over year). It also produced approximately 111.02 million tons of petroleum products, which represents a 1.1% dip. Owing to these negatives, the Refining unit’s profit fell to 610,851 million yuan from 710,651 million yuan a year.
The Marketing and Distribution segment sold 145.72 million tons of refined oil products, reflecting a 3.5% year-over-year upside.
Capital Expenditure
Capital expenditure during the first nine months of 2016 totaled 24.969 billion yuan. Out of this, 9.206 billion yuan was spent on exploration and production projects. Sinopec spent 4.995 billion yuan at the Refining segment, while the Chemical Business segment was allocated 3.967 billion yuan. The company had set aside 5.983 billion yuan for the Marketing and Distribution segment. Meanwhile, the company has spent 818 million yuan on its scientific research facilities and IT projects.
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Zacks Rank
Sinopec currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector include Ultra Petroleum Corp. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
Ultra Petroleum is likely to witness year-over-year earnings growth of 148.4% for the current year. Ultra Petroleum sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT Midstream is projected to witness year-over-year earnings growth of almost 14% for the current year. The company carries a Zacks Rank #1.
Helix Energy posted an average positive earnings surprise of 56.42% over the last four quarters. The company has a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>