SNP - China Petroleum & Chemical Corporation

NYSE - NYSE Delayed Price. Currency in USD
45.78
+2.61 (+6.05%)
At close: 4:00PM EDT

45.78 0.00 (0.00%)
After hours: 4:50PM EDT

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Previous Close43.17
Open44.69
Bid45.64 x 1100
Ask48.14 x 1100
Day's Range44.69 - 45.78
52 Week Range41.30 - 66.91
Volume203,449
Avg. Volume211,483
Market Cap68.974B
Beta (5Y Monthly)1.18
PE Ratio (TTM)5.03
EPS (TTM)9.10
Earnings DateN/A
Forward Dividend & Yield4.37 (10.12%)
Ex-Dividend DateJun. 01, 2020
1y Target Est60.85
  • Saudi Aramco's Dividend Math Doesn't Add Up
    Bloomberg

    Saudi Aramco's Dividend Math Doesn't Add Up

    (Bloomberg Opinion) -- It’s the mother of all payouts.The $75 billion that Saudi Aramco doles out in dividends every year dwarfs what any other listed company gives to shareholders. It’s roughly equivalent to the payouts from Exxon Mobil Corp., Royal Dutch Shell Plc, Chevron Corp., BP Plc, Total SA, PetroChina Co., Eni SpA, Petroleo Brasiliero SA and China Petroleum & Chemical Corp. or Sinopec — put together.That makes Chief Executive Officer Amin Nasser’s promise to continue that level of returns for the next five years an extraordinary vote of confidence in an oil market awash with uncertainties. Saudi Aramco will be prepared to borrow money to ensure that it meets its commitment this year despite oil prices heading into negative territory, he said this month.Running up debts to keep the dividend on track is standard practice for energy companies amid the carnage of 2020’s oil market — except for those, like Shell, which plan to cut payouts altogether. You only want to fund dividends out of borrowings, though, if you’re certain it’ll be a strictly temporary measure. The risk for Aramco is that upholding such a long-term promise to shareholders will bend its entire business out of shape, just when it needs to be especially nimble as crude demand slows and goes into reverse. The core of Aramco’s profitability is its astonishingly low production costs, with operating expenses amounting to not much more than $8 a barrel of oil and equivalent products last year. It’s remarkable how quickly the spending adds up, though. Royalties paid to the Saudi state alone added another $10 a barrel or so, while corporate income tax came to around $19 a barrel and dividends swallowed a further $15. Once all those tolls were paid, Aramco didn’t have a lot of spare change left out of $60-a-barrel oil, let alone the stuff in the $40-a-barrel range it’s selling at the moment.A firm dividend policy is an unusually inflexible cost. Unlike the royalties and income taxes levied as a percentage of Aramco’s revenues and profits, payouts don’t automatically shrink if the price of crude declines. If anything, the burden per barrel rises further when prices and output fall. Perhaps in recognition of this, the Saudi state has from the start agreed to forgo its portion of any payouts to the extent that receiving them would get in the way of Umm-and-Abu investors getting their share(1). That may help maintain a theoretical $75 billion-a-year payout but it makes a nonsense of the idea that all shareholders are equal, not to mention the principle that a dividend policy is some sort of a commitment to future earnings. It’s not clear, either, why a company with this get-out clause would want to take on debt to meet its promised payments, although Aramco’s borrowing costs are essentially identical to those of the Saudi state.Dividends aren’t the end of Aramco’s committed spending. Its purchase of a majority stake in chemicals company Saudi Basic Industries Corp., or Sabic, was completed this month, committing it to about $69 billion of payments over the next six years — even after a restructured plan pushed the bulk of the cash outflow toward the middle of the decade.Then there’s a potential $15 billion investment in Reliance Industries Ltd.’s Jamnagar refinery in India, $20 billion on a separate planned chemicals venture with Sabic, plus Sabic’s own $5 billion a year or so of capital spending which will now sit on Aramco’s balance sheet.Add it all up and the picture is troubling. It’s likely to be several years before operating cash flows rise above $100 billion a year again, even with Sabic’s business consolidated. If Aramco wants to spend three-quarters of that sum on its dividend while laying out $10 billion to $15 billion annually for Sabic’s finance and investment costs, then capex on its core operations will have to fall to a third or less of the $35 billion-odd that the company was spending until recently. For all that executives are confident of their ability to increase production at very low costs, that sort of belt-tightening would make the easiest route to higher profits — lifting crude output from its pre-Covid 10 million daily barrels to around 13 million — extraordinarily difficult to achieve.That path is likely to be constrained, anyway, by several years of weak demand growth as the world recovers from Covid-19. Not to mention the fact that Aramco’s importance to the oil market rests on the proposition that increases in its output, coordinated via OPEC+, should make prices move in the opposite direction, resulting in little by way of net revenue gains for the company.Unlike most of its competitors, Saudi Aramco doesn’t really need to be so focused on dividends. All but 1.5% of its shares are held by the same state that’s hoovering up royalty and tax payments further up the income statement. Riyadh shouldn’t really care how it’s getting paid, as long as it’s getting paid.That dividend policy looks more like a swaggering attempt to hold back the tide of an oil market on the edge of terminal decline. The quicker Aramco acknowledges that, the better equipped it will be to handle the coming turmoil.(1) Americans would call them "Mom-and-Pop shareholders."This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Oilprice.com

    China’s Oil Giants Are Reeling From The Price Crash

    The oil price crash has weighed on the entire sector, but China’s national oil companies are seeing short-term suffering that could lead to long-term gains

  • Sinopec Commences Zhanjiang Refining Complex Operations
    Zacks

    Sinopec Commences Zhanjiang Refining Complex Operations

    Sinopec's (SNP) Zhanjiang refining complex has a crude oil processing capacity of 200,000 bpd and an ethylene facility of 800,000 tons per year.

  • Why Has Sinopec (SNP) Declined 4.5% Since Q1 Earnings?
    Zacks

    Why Has Sinopec (SNP) Declined 4.5% Since Q1 Earnings?

    The coronavirus pandemic had quite a damaging impact on Sinopec's (SNP) Q1 earnings.

  • What Does China Petroleum & Chemical Corporation's (HKG:386) P/E Ratio Tell You?
    Simply Wall St.

    What Does China Petroleum & Chemical Corporation's (HKG:386) P/E Ratio Tell You?

    Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at China...

  • Sinopec Continues International Growth, Begins Oil Depot Operations at Sri Lanka's Hambantota Port
    CNW Group

    Sinopec Continues International Growth, Begins Oil Depot Operations at Sri Lanka's Hambantota Port

    BEIJING , April 9, 2020 /CNW/ -- China Petroleum & Chemical Corporation ("Sinopec"), China's leading energy and chemical company, officially commenced operations at its newly established oil ...

  • The U.S. Is Short on Workers Who Can Sew
    Bloomberg

    The U.S. Is Short on Workers Who Can Sew

    (Bloomberg Opinion) -- Venerable apparel retailer Brooks Brothers says it is “in the process of converting its New York, North Carolina and Massachusetts factories from manufacturing ties, shirts and suits to now making masks and gowns.” Michigan-based workwear maker Carhartt is shifting over to mask and gown production, too. In Houston, Gourmet Table Skirts & Linens, which normally sells to hotels and cruise ships, has gone all-in on surgical masks.These are encouraging signs for a country that remains way short on the personal protective equipment needed by health-care workers treating patients with Covid-19 — and eventually by the rest of us to help keep the disease from continuing its spread. But you’re not going to see a lot more announcements like these by U.S. apparel manufacturers, because there aren’t a lot more U.S. apparel manufacturers. Employment in the industry was actually up slightly in March — unlike employment in just about every other industry — but it has fallen 89% since 1990. In textile manufacturing, it’s down 79%.Manufacturing employment overall is down over that stretch too, of course, but by a much smaller 28%. And real value added by manufacturing (its contribution to gross domestic product, basically) is up 52% since 1997, when that data series begins, so part of the story is that productivity gains have allowed U.S. manufacturers to make more with fewer workers. For apparel, though, real value added is down 65% since 1997 and for textiles it’s down 39%, and while the latter has seen production rebound a bit over the course of the current expansion, apparel has not.Apparel making for the U.S. market basically moved overseas, with a quick look through my closet revealing “made in” labels from China, Honduras, Indonesia, Madagascar, Malaysia and Mauritius. It had not been what you’d call a high-value industry, and the pay for workers certainly wasn’t great. U.S. consumers seem to have gained from the shift, with clothing and footwear’s share of consumer spending falling from 5.2% in 1990 to 2.7% last year. Still, it left a lot of jobs to replace and has left the country short-handed at a time when the ability to sew things is suddenly and unexpectedly of great value.To be sure, most of the protective respirators and the surgical masks in use today are not the product of traditional textile manufacturing or cut-and-sew production. They are generally made of spun or blown plastics — Chinese oil and petrochemicals company Sinopec has a peppy video about the factory it built over 12 days in February and early March that can produce 1.2 million N95 respirators or 6 million surgical masks a day. The U.S. still has a huge petrochemicals industry, and the biggest company in it, Exxon Mobil, announced Thursday that it is working with the Global Center for Medical Innovation in Atlanta “to rapidly redesign and manufacture reusable personal protection equipment for health care workers.” That’s good news. But in the meantime, it’s nice that Brooks Brothers, Carhartt and Gourmet Table Skirts & Linens are still around to fill in some of the gaps.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Justin Fox is a Bloomberg Opinion columnist covering business. He was the editorial director of Harvard Business Review and wrote for Time, Fortune and American Banker. He is the author of “The Myth of the Rational Market.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Even China’s Big Oil Is Cutting Back
    Bloomberg

    Even China’s Big Oil Is Cutting Back

    (Bloomberg Opinion) -- Under the watchful eye of Beijing’s energy hawks, China’s oil and gas majors have splurged for more than a decade, first on deals abroad and then drilling at home. Yet with crude prices at less than half where they were at the start of the year and demand battered by a coronavirus epidemic, they’re preparing to cut back.Cnooc Ltd. signaled Wednesday it might reduce its 2020 capital expenditure budget, which was set at as much as $13 billion, the highest since 2014. PetroChina Ltd., the country’s largest oil producer with a market value of $117 billion, suggested Thursday that it would do the same. Given the delicate politics involved, it’s a welcome hint of rational frugality.Energy security has always been a top concern for China’s leadership. Overseas deals peaked at $28 billion in 2012, the year Cnooc bid for Canada’s Nexen. Local production growth has been less exuberant, and China has been importing ever more. As trade tensions with Washington rose in 2018, President Xi Jinping urged the country’s state-owned titans to drill. That set off a frenzy from deepwater fields in the South China Sea to shale gas in Sichuan, where China Petroleum & Chemical Corp., known as Sinopec, has led. Performing national service is fine when oil is at $60 a barrel, even if the improvements are unimpressive compared to the capital spent. It’s a different matter when West Texas Intermediate is just coming off an 18-year low of less than $20. That’s a price at which no one can make money — not even Cnooc, with an all-in production cost of less than $30 per barrel of oil equivalent. Cnooc’s adventures in U.S. onshore and Canadian oil sands look terrible; its buccaneering domestic ventures are little better.Overseas, oil majors from Chevron Corp. to Saudi Aramco are cutting spending to preserve capital. Dividends are precarious. Logic dictates that China’s producers, even with healthier balance sheets, will follow the same pattern. The question is whether they can put financial logic ahead of political necessity. So far, the message is cautious: Cnooc executives pointed out that 2020 spending targets were drawn up when oil was at $65, so adjustments would be made. It gave no specifics. PetroChina, meanwhile, didn’t disclose precise targets for the year. That’s no accident, given a volatile market. After a string of personnel changes, there are new bosses across the industry. Political priorities haven’t been set in stone, given the delay in the annual National People’s Congress meeting. Still, the official message has been clear: Life is returning to normal after a devastating shutdown. Announcing a drastic spending cut, or anything that might hint at job losses or a weak economy, simply isn’t on the cards. PetroChina employed 476,000 at the end of 2018.That doesn’t mean that there won’t be mild cuts followed by steeper ones later in the year, a pattern seen before.How steep? Unlike during the last price crunch, in 2014 and 2015, the forward curve suggests prices will remain low, with little prospect for a quick solution to the Russia-Saudi spat that has worsened a global supply glut. Demand, meanwhile, is in the doldrums. China’s economy, and therefore its own appetite for oil and gas, is recovering only slowly, and the rest of the world is ailing as more lockdowns, factory closures and travel restrictions are imposed to limit the spread of the coronavirus. Analysts at UBS Group AG forecast Cnooc’s capex could come down 25% over the next two years, a cut that could be far deeper if oil averages closer to $30 this year. Overall, they project Chinese state-owned oil producers could cut spending by over a third, dragging production down 8% to 9%. Exploration budgets may be trimmed, though domestic production — where job preservation remains key — will mostly be spared. That leaves refining and other downstream activities, plus projects abroad, to bear the brunt. Low energy prices aren’t all bad for China, which imports more than 70% of the crude it consumes. Even liberalization of the domestic gas market becomes easier when prices are low enough for consumers to cope with change, Michal Meidan of the Oxford Institute for Energy Studies points out. Cheaper oil could eventually stimulate demand. For now, a little less drilling all round. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    U.S. Factories Helped Win World War II. They Can Do It Again.

    (Bloomberg Opinion) -- When you’re in a critical fight, you need to use all the weapons at your disposal. And so, it’s time once again for America to marshal its great arsenal of democracy. Just as Detroit automakers became aircraft, tank and gun manufacturers during World War II, today’s industrial companies need to repurpose their factories for the tools needed to fight the current enemy: the coronavirus.Countries across the globe sealed their borders over the weekend and relegated citizens to the confines of their homes in an effort to slow the spread of the deadly virus before it overwhelms the Western World’s health-care systems. The president of Massachusetts General Hospital called on Sunday for the federal government to go into a “war-like stance” and launch a “Manhattan Project” to accelerate production of protective gear. No such plan has been announced by the Trump administration, but U.S. industrial companies should heed the call anyway. Because as far as wars go, this is one for which the country is woefully unprepared.The U.S. has fewer than 170,000 ventilators available for patient care, including estimates for those in the national stockpile, according to a report last month from the Center for Health Security at Johns Hopkins Bloomberg School of Public Health. (The school is supported by Michael Bloomberg, founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.) The number of face masks in that strategic reserve was depleted in the swine-flu outbreak of 2009 and as of early March it held only about 12 million N95 respirators and 30 million surgical masks, significantly fewer than the 3.5 billion masks experts estimate the U.S. would need in a severe pandemic, according to the Washington Post. It falls to private manufacturers to step in and fill the void.With airlines parking jets, consumers locked in their homes and companies focusing on managing the disruption, demand for jet engines, HVAC systems and factory equipment is going to shrivel up for the near future. Rather than sit idle, American factories should be redeployed for the products needed to fight the coronavirus, whether that’s face masks, ventilators, other health-care equipment or even toilet paper for that matter. The Trump administration has already leaned heavily on companies such as Laboratory Corp. of America Holdings, Roche Holding AG and Walmart Inc. to improve the availability and access to testing. But White House virus response coordinator Dr. Deborah Birx warned on Sunday that there will be a spike in cases as more people get access to tests. That’s when the real work is going to begin for the nation’s hospitals. It’s in every U.S. company’s interest to make sure they’re as prepared as possible, and manufacturers have a key role to play. Companies such as 3M Co. and Honeywell International Inc. already make masks and personal-protective gear, but they will need help to meet the huge demand.After China declared a “people’s war” on the outbreak in that country, companies including electric automaker BYD Co., petroleum refiner Sinopec and iPhone assembler Foxconn started making masks instead. French luxury-goods maker LVMH announced Sunday it’s converting perfume and cosmetics factories to make hand sanitizer, which it will deliver free of charge to the local authorities and hospital system. In the U.K., Prime Minister Boris Johnson is calling on manufacturers including Dyson, Unipart Group, Honda and Ford to help with that country’s ventilator shortage, according to the Financial Times. American companies need to follow this lead. Apart from the moral and patriotic implications, it’s just good business sense. The faster the world responds to this health crisis, the faster it can get back on its feet.To contact the author of this story: Brooke Sutherland at bsutherland7@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Will Chevron (CVX) Pull Out of Indonesian Deepwater Stake?
    Zacks

    Will Chevron (CVX) Pull Out of Indonesian Deepwater Stake?

    Chevron (CVX) is contemplating the potential sale of its stake in the Indonesian Deepwater Development gas project to control costs and prepare for long-term low prices.

  • Sinopec (SNP) to Review Multi-Billion LNG Deal With Cheniere
    Zacks

    Sinopec (SNP) to Review Multi-Billion LNG Deal With Cheniere

    While LNG prices plunge due to a supply glut, this gives Sinopec (SNP) a leverage over Cheniere, which is the supplier in the potential $16-billion LNG deal.

  • What Does CNOOC's 2020 Capex & Production Guidance Tell Us?
    Zacks

    What Does CNOOC's 2020 Capex & Production Guidance Tell Us?

    CNOOC's (CEO) total capital expenditures for 2020 are projected in the range of RMB 85-RMB 95 billion.

  • Sinopec Masters Sinomacs ATS I Steerable Drilling System with Major Breakthrough in SLOF Oil Field
    CNW Group

    Sinopec Masters Sinomacs ATS I Steerable Drilling System with Major Breakthrough in SLOF Oil Field

    BEIJING, Dec. 27, 2019 /CNW/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) has announced a significant breakthrough as its self-developed Sinomacs ATS I type rotary steerable drilling system drilled to a depth of 857 meters after working 141 hours non-stop from December 13 to 19 in an oil well in SLOF (Shengli Oil Field), Shandong Province. The steerable rotary drilling system is the farsighted and fleet-footed assistant of the drill that enables faster drilling in underground gas and oil reservoirs at a lower cost. It's the preferred technology of petroleum companies to complete horizontal well drilling due to its ability to hit targets every time according to the designed track accurately.

  • Sinopec & LyondellBasell to Form 2nd Chemicals' JV in China
    Zacks

    Sinopec & LyondellBasell to Form 2nd Chemicals' JV in China

    Sinopec (SNP) expects to begin the construction of the new plant early next year, which will bring the unit online by 2022.

  • The Zacks Analyst Blog Highlights: SAP, AbbVie, Sinopec, Cigna and Intuitive Surgical
    Zacks

    The Zacks Analyst Blog Highlights: SAP, AbbVie, Sinopec, Cigna and Intuitive Surgical

    The Zacks Analyst Blog Highlights: SAP, AbbVie, Sinopec, Cigna and Intuitive Surgical

  • Top Stock Reports for SAP, AbbVie & Sinopec
    Zacks

    Top Stock Reports for SAP, AbbVie & Sinopec

    Top Stock Reports for SAP, AbbVie & Sinopec

  • China Grants New Tariff Exemptions for US Goods Before 2020
    Zacks

    China Grants New Tariff Exemptions for US Goods Before 2020

    China's recent set of tariff exemptions include six U.S. chemical and oil products.

  • China firms stock up cleaner shipping fuel overseas ahead of new emission rules
    Reuters

    China firms stock up cleaner shipping fuel overseas ahead of new emission rules

    Chinese marine fuel suppliers have signed up short-term deals to buy very low-sulphur fuel oil from companies like oil major Shell <RDSa.L>, Germany's Uniper <UN01.DE> and U.S. commodities trader Freepoint ahead of a new standard on emissions for the global shipping industry that kicks in on Jan. 1. While China's state refiners have pledged to produce a combined 14 million tonnes of the fuel for 2020 that complies with the tighter rules set by the International Maritime Organization (IMO), Beijing has not yet rolled out much-anticipated tax breaks that will encourage refineries to ramp up domestic output of the very low-sulphur fuel oil (VLSFO). Instead, companies like Chimbusco, PetroChina <0857.HK> and Sinopec Corp <0386.HK> have procured supplies from the international market to cover demand up to the end-March, executives at the three firms said.

  • Sinopec Completes Main Unit of the Middle East's Largest Refinery
    CNW Group

    Sinopec Completes Main Unit of the Middle East's Largest Refinery

    KUWAIT CITY , Kuwait , Dec. 16, 2019 /CNW/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) has completed the central unit of the Al-Zour refinery project in Kuwait . As the largest refinery in the Middle East , it will make Kuwait the biggest clean oil-producing country in the region with an annual processing capacity of 3,150 tons. Launched in October 2015 , the Al-Zour refinery project is the latest achievement of Sino-Kuwait cooperation, which also holds the record of being the world's largest one-time construction to date.

  • Sinopec May Open a Greenfield Refinery Complex in South China
    Zacks

    Sinopec May Open a Greenfield Refinery Complex in South China

    Sinopec's (SNP) new greenfield refinery plant is expected to have a capacity of 200,000 barrels per day.

  • Sinopec and Air Liquide Inaugurate Two Hydrogen Stations in Shanghai
    CNW Group

    Sinopec and Air Liquide Inaugurate Two Hydrogen Stations in Shanghai

    SHANGHAI, Nov. 20, 2019 /CNW/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028;NYSE: SNP) and French company Air Liquide opened two hydrogen stations, West Shanghai Petrol and Hydrogen Fueling Station and Anzhi Gas and Hydrogen Fueling Station, on November 18 in Shanghai.

  • Sinopec to launch $5.7 billion South China refinery in Q2 2020, seek Kuwaiti oil - sources
    Reuters

    Sinopec to launch $5.7 billion South China refinery in Q2 2020, seek Kuwaiti oil - sources

    China's Sinopec Corp is set to launch a new $5.7 billion refining and petrochemical complex in the south of the country in second-quarter 2020 using crude oil from Kuwait as a key feedstock, industry officials with knowledge of the matter said. The project being developed by Asia's top refiner, a 200,000 barrels-per-day (bpd) plant in Zhanjiang, a coastal city in Guangdong province, will become the third greenfield refinery-petrochemical complex to be built in China within a space of two years. Zhanjiang is Sinopec's <0386.HK> first major capacity addition since it launched a similar-sized Qingdao refinery on the east coast in 2009.

  • Sinopec (SNP) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
    Zacks

    Sinopec (SNP) Q3 Earnings Miss Estimates, Revenues Fall Y/Y

    Lower realized price of crude hurts Sinopec's (SNP) Q3 earnings.

  • PetroChina (PTR) Q3 Earnings Miss Despite Upstream Strength
    Zacks

    PetroChina (PTR) Q3 Earnings Miss Despite Upstream Strength

    Higher oil and gas production and drop in lifting costs helped PetroChina's (PTR) exploration and production unit profit surge 32.9% during the nine months ended Sep 30, 2019.