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China Petroleum & Chemical Corporation (SNP)

  • May. 22, 2014, 5:31 PM
    • Sinopec (SNP) reportedly is pushing to start a second phase next year in Iran's Yadavaran oilfield development, a plan Iran says it is likely to approve.
    • SNP officials are said to be traveling to Tehran next month to discuss plans for ordering equipment such as pipes and whether the deal can be adapted to Iran's proposed E&P contracts for foreign companies.
    • The push is part of a broader attempt by China and Iran to mend fences after the April cancellation of a $2.5B deal with PetroChina (PTR) to develop the South Azadegan oilfield following repeated delays.
    • The field currently produces 25K bbl/day, but the new phase would boost output to 135K bbl/day.
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  • May. 21, 2014, 8:14 AM
    • Sinopec (SNP) says it is forming a joint venture oilfield services company with Weatherford International (WFT) to form a joint venture oilfield service company; no financial details are provided.
    • The joint entity seeks to combine WFT's technological and management know-how with SNP's ability to expand its upstream business, including in China's nascent shale gas sector.
    • A commercial shale gas find announced earlier this year at southwest China's Fuling area has lifted hopes that China is near a breakthrough in unlocking its vast shale potential, placing SNP in a top position to develop the resource and forcing rival PetroChina (PTR) to play catch-up to meet national production targets.
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  • May. 13, 2014, 10:58 AM
    • Cnooc's (CEO) stock performance has been trailing Chinese rivals Sinopec (SNP) and PetroChina (PTR), and the company has lagged behind its own production targets, and raised spending even as rivals have cut back; now the naval conflict with Vietnam raises the question of whether Cnooc will be dragged into politicized ventures.
    • Such concerns are overdone, writes Heard On The Street's Abheek Bhattacharya: Cnooc remains one of the fastest growing large energy companies in the world, with output seen growing at 15% next year; buying Canada's Nexen two years ago diversified its reserves and lifted the life span of its reserves; and the stock comes cheap relative to peers.
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  • May. 13, 2014, 8:19 AM
    • PetroChina (PTR) says it will spin off part of its transnational gas pipelines business, the latest move in China's strategy to invite outside capital into state-dominated sectors including energy.
    • PTR plans to establish a separate company comprising two of its west-east pipelines, which carry natural gas more than 4K km from the central Asian border region of Xinjiang to Shanghai and Guangdong on the east coast; PTR values the assets at $4.7B-$6.3B.
    • Rival Sinopec (SNP) became the standard bearer for the new policy earlier this year with its $20B plan to sell a minority stake in its gasoline stations and convenience store business.
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  • Apr. 29, 2014, 8:58 AM
    • Malaysia's Petronas says it will sell a 15% stake in the Pacific Northwest liquefied natural gas project in Canada to Sinopec (SNP).
    • SNP will buy 1.8M tons/year of LNG, equivalent to about 15% of the project's total output, for at least 20 years once it begins production.
    • Petronas has been selling stakes in Pacific Northwest LNG's reserves and output to raise funds for its development, which could cost as much as C$11B ($10B), but will still hold 62% in the project after the deals are completed.
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  • Apr. 28, 2014, 11:35 AM
    • Sinopec (SNP -0.4%) reports a larger than estimated 15% drop in Q1 profit, hurt by higher finance expenses due to the weaker Chinese yuan.
    • SNP's sales declined 8% to 641B yuan and operating profit at its E&P business dropped 19% to 13.2B in the quarter; crude oil output rose 9% to 89.4M metric tons, while its realized oil price declined 4%, and gas output gained 9% to 177.4B cf.
    • PetroChina (PTR), China’s biggest oil and gas producer, posted a 5% decline in Q1 profit last week; both companies were hurt by the weaker Chinese yuan, which has a bigger impact on SNP because the China's biggest refiner and crude oil importer buys ~70% of the crude it needs in U.S. dollars.
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  • Apr. 25, 2014, 10:14 AM
    • Canadian Oil Sands (COSWF -4.4%) announces an unplanned maintenance-related outage at Syncrude Coker 8-1, prompting it to lower its estimate for 2014 Syncrude production to 95M-105M barrels.
    • National Bank downgrades shares to Underperform from Sector Perform, saying the outage could mean Q2 production will get hit especially hard since the timing could overlap with planned maintenance of another upgrader.
    • Other owners of Syncrude include Imperial Oil (IMO), Suncor (SU), Murphy Oil (MUR), Sinopec (SNP) and Cnooc (CEO).
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  • Apr. 23, 2014, 8:56 AM
    • China's Ministry of Environmental Protection lifts its ban on new projects from China National Petroleum (PTR) and Sinopec (SNP) after determining they met pollution targets last year; China's two largest refining companies make up more than 75% of the country's refining capacity.
    • The ministry says both companies boosted spending, fixed problems and accelerated the construction of key projects that helped reduce emissions of four major pollutants in 2013 vs. 2012.
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  • Apr. 23, 2014, 8:35 AM
    • The Yamal LNG project in Russia's Arctic reportedly has chosen Canada's Teekay LNG (TK, TGP), Japan's Mitsui and Russia's Sovkomflot to build 16 liquefied natural gas carriers worth $5B.
    • The project is scheduled to start producing gas in 2016 and supply 16.5M metric tons of the tanker-shipped fuel in 2018; Russia's Novatek holds a 60% stake in the $27B, while France's Total (TOT) and China's CNPC (SNP) own 20% each.
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  • Apr. 15, 2014, 8:09 AM
    • Sinopec (SNP) agrees to acquire assets in Kazakhstan from no. 2 Russian oil producer Lukoil (LUKOY, LUKOF) for ~$1.2B, which will give it additional hydrocarbon production of 10.2M boe.
    • The purchase highlights the push by China to secure diverse energy assets abroad to meet rising demand at home.
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  • Apr. 14, 2014, 4:54 AM
    • Tesla Motor (TSLA) CEO Elon Musk will reportedly hold talks with China Petroleum & Chemical (SNP) this month about constructing charging units in the refiner's nationwide network of service stations.
    • China Petroleum & Chemical, also known as Sinopec, would start in Beijing and then roll out the charging stations to the surrounding areas.
    • Musk is due in China anyway to start delivering Model S cars to Chinese customers.
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  • Apr. 11, 2014, 8:26 AM
    • Sinopec (SNP) reportedly has invited banks to pitch for handling the sale of part of its retail assets of thousands of gas stations and convenience stores.
    • SNP has said it would allow outsiders to own up to 30% of the retail business, which Barclays believes is worth more than $20B and could attract the interest of supermarket operators.
    • To improve their share performance, SNP and PetroChina (PTR) are restructuring their volatile downstream refinery and marketing businesses, including the gas stations, by introducing outside investors.
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  • Apr. 9, 2014, 9:11 AM
    • Royal Dutch Shell (RDS.A, {{RDS.B]]) and China National Petroleum (SNP) sign a long-term deal to collaborate on projects in unconventional resources such as shale, the deepwater and liquefied natural gas spheres, and other upstream and downstream projects.
    • Ben van Beurden, in his first overseas visit since becoming Shell's CEO, tells CNPC Chairman Zhou Jiping that both sides have set up deep and wide-ranging ties and have huge room for further cooperation.
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  • Apr. 3, 2014, 4:59 PM
    • Sinopec (SNP) is working with Goldman Sachs (GS) on the sale of a 30% stake in its retail assets, which includes China’s biggest network of fuel stations, Bloomberg reported earlier.
    • Such a deal could raise as much as $30B, which would be the biggest asset sale by a Chinese state-owned company.
    • China Petrochemical, SNP's parent company, raised $5B yesterday from the biggest offering of dollar-denominated notes by an Asian issuer in more than a decade; Goldman was among banks that arranged the bond sale and was sole manager of SNP’s $3.1B share offering in Hong Kong last year.
  • Mar. 31, 2014, 3:46 PM
    • Sinopec (SNP -0.3%) indicates that it plans to start pumping from the Yuanba sour gas field in China's Sichuan basin by the end of 2014 using its own technology.
    • SNP intends for the processing plant at Yuanba to produce 3.4B cubic meters/year of gas by year's end, equivalent to 18% of SNP's total output of ~18.7B cm last year, according to a report on the company's website.
    • SNP plans to use its own technology to tap the deposit, unlike the Puguang project - its first high-sulfur gas project in Sichuan - where it used U.S. expertise.
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  • Mar. 28, 2014, 3:06 PM
    • Total (TOT +0.8%) plans to seek shale gas with Sinopec (SNP -0.4%) by drilling in Anhui province, moving the European energy company closer to exploiting Chinese reserves.
    • The companies will drill for gas this year and next in the 1,500 sq. mile Xuancheng permit near Nanjing after carrying out two-dimensional seismic surveys in the five months through February.
    • China has set a national output target of 6.5B cubic meters of shale gas by 2015, and as much as 100B cubic meters by 2020.
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Company Description
China Petroleum & Chemical Corp is engaged in the oil & gas and chemical operations & businesses, including exploration, development, production, refining, transportation, storage & marketing of crude oil & natural gas & production of chemicals.
Country: China