China Petroleum & Chemical CorporationNYSE
Thu, Oct. 27, 1:10 PM
- Sinopec (SNP -0.9%) says its Q3 profit rose 6x from a year ago to 10.2B yuan ($1.5B) as refining gains helped overcome mounting losses from oil and gas production.
- SNP does not release quarterly operational data, but Bloomberg calculates Q3 operating profits from refining, marketing and chemicals more than doubled Y/Y to 24.1B yuan, based on half-year and nine-month data from the company.
- However, Q3 operating losses from E&P deepened to 8.49B yuan from a loss of 1.62B yuan during the year-ago period, and the unit likely will extend losses in Q4 and post the steepest production decline among the three Chinese oil majors in 2016 given its higher cost structure, according to Bloomberg.
Thu, Oct. 27, 9:12 AM
Wed, Oct. 19, 1:45 PM
- China's crude oil production fell 9.8% in September from a year ago, following a record 9.9% drop in August, with major producers continuing to shut high-cost wells to curb spending.
- Domestic crude output tumbled to 15.98M metric tons, or 3.89M bbl/day, near the lowest in six years on a daily basis, according to government data.
- The back-to-back sharp declines are a sign that a prolonged efficiency drive by drillers in one of the world's top five producers may help to rebalance the oversupplied global market.
- Related tickers: PTR, CEO, SNP
Mon, Oct. 10, 4:32 PM
- The ConocoPhillips (NYSE:COP) operated Australia Pacific liquefied natural gas plant confirms that production had started at the second of its two units.
- Australia Pacific LNG, a 9M metric tons/year project co-owned by COP, Origin Energy (OTCPK:OGFGF) and China's Sinopec (NYSE:SNP), is among three coal seam gas-to-LNG plants to have opened on Curtis Island off Australia's east coast over the past two years.
- Traders believe APLNG will ship its first cargo from the second production train in the second half of October; The plant has loaded 47 cargoes since starting up last December.
Thu, Sep. 15, 8:58 AM
- At least three chemical companies are set to bid for BP's 50% stake in Chinese petrochemicals joint venture SECCO which could fetch more than $2B, Reuters reports.
- SK Chemicals, a pharmaceutical unit of South Korea's SK Group; Austrian plastics group Borealis, owned by Abu Dhabi's sovereign wealth fund IPIC and oil and gas company OMV; and privately-owned Switzerland-based chemicals company Ineos reportedly will bid for the asset, BP's largest investment in China.
- Sinopec (NYSE:SNP), BP's partner in the joint venture, has a right of first refusal on any deal, and it is not known what the state-owned group may decide.
Mon, Aug. 29, 11:20 AM
- Sinopec (SNP -0.1%) says its H1 net profit fell 22% to 19.9B yuan ($2.98B) from 25.4B yuan in the year-ago quarter, but that's more than double its net income in H2 of last year when it posted its weakest earnings since 2002.
- SNP outshined domestic state-run rivals PetroChina (PTR -0.3%) and Cnooc (CEO -0.3%) in H1 as its refining business helped it weather the drops in crude oil and natural gas prices.
- SNP's H1 refining margin rose nearly 48% Y/Y to 514.4 yuan/ton, processing 115.9M tons of crude into fuels (4.67M bbl/day).
- However, SNP's H1 crude production fell to 154.2M barrels, down 11.4% Y/Y, nearly all from domestic operations, which accounts for more than 80% of its crude output; SNP forecasts total H2 production will slip to 147M barrels.
Mon, Aug. 29, 7:42 AM
Fri, Aug. 26, 5:55 PM
- China’s struggling oil sector is entering a long-term decline of its domestic production, a development that has significant global implications including the potential for higher crude oil prices over time as China steps up imports to meet rising demand at home, WSJ reports.
- Oil production in China is believed that have peaked last year at ~4.3M bbl/day, as output fell 5% in H1 2016 and 8% in July to 3.95M bbl/day, its lowest daily average in nearly five years; the country’s three biggest oil fields likely experienced production declines of 7%-9% during H1.
- It means that the assets that long served as the cornerstone for revenue for China's energy giants PetroChina (NYSE:PTR), Sinopec (NYSE:SNP) and Cnooc (NYSE:CEO) are drying up, and if the companies want to be more profitable - as outside investors and China’s government are pressuring them to do - they will need to diversify their revenue sources and expand their global presence.
Wed, Aug. 3, 7:36 AM
- China's Sinopec (NYSE:SNP) says it plans to sell half of its premium natural gas pipeline business, a move prompted by the Chinese government's push for greater outside investment in the sector's infrastructure.
- SNP says it would continue to hold a 50% stake in the unit that operates the Sichuan-to-East China gas pipeline that connects production in central China with demand in eastern industrial centers.
- Analysts at the CLSA brokerage say the divestment could raise 20B yuan in fresh capital for SNP, although the state-owned Chinese group is not saying how much it expects to raise from the sale or when it would be completed.
Wed, Jul. 20, 1:10 PM
- Sinopec (SNP +0.6%) says its H1 crude oil production fell 11.4% Y/Y to 154.2M barrels, while natural gas output rose 10% to 388.7B cf, and oil processing fell 2.5% to 115.9M metric tons, highlighting the shift toward gas by the world's biggest refiner.
- SNP says the 13% drop in domestic crude oil output, which makes up more than 80% of of its production, outpaced the 3% slide overseas.
- SNP has said it plans to double annual gas production to 40B cm by 2020 as China pushes to replace coal with the cleaner fuel.
Wed, Jul. 13, 4:59 PM
- China's demand for oil has helped soak up some of the world's surplus crude oil, but the country’s refiners are now flooding markets with products including diesel and gasoline, WSJ reports.
- China says its total exports of refined fuels jumped 38% Y/Y to 4.2M tons, or ~1.02M bbl/day, in June, sending its refined fuel exports up 45% overall so far this year.
- Slowing domestic demand has left China’s oil refiners with huge surpluses they are looking to sell abroad, a trend that mirrors similar increases in China’s exports of processed basic materials such as steel in recent months and has provoked complaints from governments and industries around the world.
- Another key factor is the resurgence of China’s independent crude refiners: Last year, the government allowed them to directly import crude from abroad for the first time instead of buying more expensive crude from domestic state-owned oil companies, and the subsequent ramp-up in production has provided big state-owned refiners such as Sinopec (NYSE:SNP) and China National Petroleum (NYSE:PTR) with greater competition at home, leading them to sell more abroad.
Thu, Jun. 30, 9:44 AM
- Some Sinopec (SNP +0.7%) subsidiaries inflated their 2014 revenue and costs by 20.2B yuan ($3.04B) by manipulating their financial reports through fake invoices of fuel sales, among other discrepancies, according to a report by China's auditing department.
- The audit also showed SNP lost 1.29B yuan after it acquired a 49% stake in an overseas project, nd that crude output from 29 overseas production projects fell short of targets stated in feasibility studies.
- The auditing office also highlighted wasted investments by the SNP subsidiaries, such as 14 unused chemical plants, and raised red flags on two dozen "illegally acquired" fuel stations.
Sun, Jun. 26, 7:02 AM
- Strengthening their economic ties, Russia and China sealed a raft of energy deals during President Vladimir Putin's visit to Beijing on Saturday.
- ChemChina agreed to take a 40% stake in Rosneft's (OTC:RNFTF) planned petrochemical complex VNHK in Russia's Far East and signed a new one-year supply contract.
- The Russian firm also committed to negotiating the sale of 20% of its Verkhnechonsk unit to Beijing Enterprises (OTCPK:BJINY) and signed a framework agreement with Sinopec (NYSE:SNP).
- Previously: Putin weighs $11B Rosneft sale to China, India (Jun. 20 2016)
Fri, Jun. 17, 10:53 AM
- Repsol (OTCQX:REPYF, OTCQX:REPYY) says Sinopec (NYSE:SNP) has served an arbitration claim demanding ~$5.5B in compensation for the repayment of an investment in a 2012 joint venture.
- SNP and its subsidiary Addax Petroleum UK are seeking compensation for their initial investment and lost investment opportunities related to a North Sea oil and gas joint venture with Talisman Energy, which Repsol bought in 2014.
- "The arbitration notice is unfounded and does not reflect the loyal attitude one would expect from a partner," Repsol says.
Wed, Jun. 1, 6:47 PM
- Traders expect deliveries from the Syncrude project in Alberta for June to be cut by ~85%, Reuters reports.
- Unipec, the trading arm of Chinese refiner Sinopec (NYSE:SNP), advised customers this week it would cut its sales of Syncrude for June due to the force majeure on Syncrude's production, according to the report.
- Syncrude has not specified when operations would restart after closing a month ago during Alberta's wildfires, but says the facility is finalizing its safe return to operations.
- Suncor Energy (NYSE:SU) owns 53.74% of Syncrude, with Imperial Oil (NYSEMKT:IMO), SNP and Nexen (NYSE:CEO) the leading minority partners.
Mon, May 9, 3:23 AM
- Saudi Arabia is hoping to lure ExxonMobil (NYSE:XOM), Sinopec (NYSE:SNP) and BP into buying stakes of state-run oil company Aramco, when it sells 5% of its equity, according to the U.K.'s Telegraph newspaper.
- The country is planning a three-way listing for London, Hong Kong, and New York as early as 2017 that would in be 5x larger than any IPO in history (shares could be valued at $100B-$150B).
- Deputy Crown Prince Mohammed bin Salman first announced the decision in April, looking to spearhead his "2030 Vision" by diversifying and breaking the country's addiction to oil.