Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  SHANGHAI STOCK EXCHANGE  >  China Petroleum & Chemical Corp    600028   CNE0000018G1

CHINA PETROLEUM & CHEMICAL CORP

(600028)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

China's Sinopec first-half profit falls 25% year-on-year over thin refining margins

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/25/2019 | 07:38am EDT
Man stands next to a logo of Sinopec at an expo on rubber technology in Shanghai

BEIJING (Reuters) - China Petroleum and Chemical Corp, or Sinopec Corp, reported a 24.7 percent drop in earnings in the first half of 2019 on Sunday, dampened by rapid growth of domestic refining capacity and waning demand for refined products.

Sinopec, Asia's largest refiner, posted a net profit of 31.34 billion yuan ($4.42 billion) in the first six months of the year under Chinese accounting standards.

That put the profit in the April-June period at 16.58 billion yuan, up from 14.76 billion yuan in the first quarter but down 27% year-on-year, according to Reuters calculations based on company statements filed with the Shanghai Stocks Exchange.

Revenue in the first six months rose 15.3% from a year ago to 1.5 trillion yuan, the company said.

"Domestic demand of refined oil products continued to grow in the first half of this year (but) competition in the market was extremely fierce with ample supplies," Sinopec said in a statement.

Refining margins at Chinese refiners were cut after the start-up of two mega-sized plants, Hengli Petrochemicals and Zhejiang Petrochemical, with combined capacity of nearly 800,000 barrels per day.

However, demand for refined oil products, especially gasoline and diesel, were tepid amid stagnating car sales and an economic slowdown.

Some fuel producers were forced to make extended curbs to their output as profit margins fell into the red.

Average profit margins of oil refining at Sinopec were reported to be 383 yuan a tonne in the first half of 2019, down 161 yuan a tonne, or 29.6% year-on-year.

Oil throughput at Sinopec was at 123.92 million tonnes in the reported period, or about 5 million bpd, up from 4.87 million bpd in the first half of last year.

The company said it produced 141.68 million barrels of crude oil, down 1.4% on year, and 509.5 billion cubic feet of natural gas, up 7% from the same period last year.

Sinopec plans to further boost its oil and gas exploration and development in the second half of this year by building oil production capacity in the Shunbei block in the northwestern region of Xinjiang and an offshore block in the Shengli oilfield. It also plans to speed up gas production capacity in Sichuan and Inner Mongolia.

Sinopec expects to produce 142 million barrels of crude oil, with 17 barrels from overseas fields, and 507 billion cubic feet of natural gas in the second half of 2019.

It also plans to process 124 million tonnes of crude oil in the July-December period.

"We will accelerate construction of advanced capacity ... and improve production plans of low-sulphur bunker fuel to lower our output cost," it said.

Sinopec said last year it would start supplying low-sulphur fuel in 2019 and all of its supplies would meet a 0.5 percent sulphur content cap in shipping fuel set by the International Maritime Organisation before it comes into effect on Jan. 1, 2020.

(Reporting by Muyu Xu and Aizhu Chen; Editing by Paul Tait)

Stocks mentioned in the article
ChangeLast1st jan.
CHINA PETROLEUM & CHEMICAL CORP 0.39% 5.09 End-of-day quote.2.18%
HENGLI PETROCHEMICAL CO LTD -0.87% 15.93 End-of-day quote.70.32%
US DOLLAR / CHINESE YUAN RENMINBI (USD/CNY) 0.15% 7.0949 Delayed Quote.3.14%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CHINA PETROLEUM & CHEMICAL
09/17CHINA PETROLEUM & CHEMICAL : Unipec accelerates U.S. crude purchases after Saudi..
RE
09/17Saudi Aramco to delay some of PetroChina's October oil loadings - source
RE
09/15Shares of Chinese Oil Giants Jump as Crude Oil Prices Rise
DJ
09/06CHINA PETROLEUM & CHEMICAL : Ex-dividend day for interim dividend
FA
09/05Unipec resells U.S. oil to India, South Korea after China tariffs - sources
RE
09/05Unipec resells U.S. oil to India, South Korea after China tariffs - sources
RE
08/29PetroChina first-half profit rises 3.6% on higher oil, gas sales
RE
08/28China's tariffs on U.S. commodities and energy
RE
08/27EXCLUSIVE : French investigators focus on Dentsu partner in sports corruption pr..
RE
08/26Caught in tariff war, Sinopec seeks waiver for imported U.S. oil - sources
RE
More news
Financials (CNY)
Sales 2019 2 889 B
EBIT 2019 91 661 M
Net income 2019 60 211 M
Debt 2019 3 289 M
Yield 2019 6,63%
P/E ratio 2019 10,2x
P/E ratio 2020 9,73x
EV / Sales2019 0,23x
EV / Sales2020 0,20x
Capitalization 658 B
Chart CHINA PETROLEUM & CHEMICAL CORP
Duration : Period :
China Petroleum & Chemical Corp Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CHINA PETROLEUM & CHEMICAL
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 20
Average target price 6,41  CNY
Last Close Price 5,07  CNY
Spread / Highest target 107%
Spread / Average Target 26,4%
Spread / Lowest Target 2,87%
EPS Revisions
Managers
NameTitle
Yong Sheng Ma President & Executive Director
Hou Liang Dai Chairman
Dong Zhao Chairman-Supervisory Board
De Hua Wang Chief Financial Officer
Zhen Ying Jiang Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
CHINA PETROLEUM & CHEMICAL CORP2.18%83 883
EXXON MOBIL CORPORATION6.79%308 109
BP PLC3.86%129 841
RELIANCE INDUSTRIES7.53%100 404
SUNCOR ENERGY INC.11.07%49 642
PHILLIPS 6619.55%46 195