China Petroleum and Chemical Corporation SNP, also known as Sinopec, reported third-quarter 2015 earnings per ADR of 20 cents, beating the Zacks Consensus Estimate of a penny. Revenues however fell 34.6% year over year to 496.48 billion yuan ($77.89 billion). The top line was affected by lower oil price realizations.
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Operational Performance
During the nine-month period ending Sep 30, 2015, Sinopec’s crude oil production decreased 2.41% year over year to 262.38 million barrels. Natural gas volumes fell 0.12% year over year to 530.14 billion cubic feet in the same period. Domestic crude oil production declined 4.34% year over year to 222.42 million barrels, while overseas volumes increased 9.90% year over year to 39.96 million barrels. Total oil and gas production shrunk 1.84% year over year to 350.82 million barrels of oil equivalent.
The company’s Refining business recorded refinery throughput of 178.32 million tons (up 1.42% year over year). It also produced approximately 112.19 million tons of petroleum products, which represents a 2.94% rise from the first nine months of 2014.
The Marketing and Distribution segment sold 140.75 million tons of refined oil products, which reflects a 1.88% year-over-year increase.
Capital Expenditure
Capital expenditures for the first nine months of 2015 totaled 38.07 billion yuan. Out of this, 20.54 billion yuan was spent on exploration and production projects. Sinopec spent 4.95 billion yuan on the Refining segment, while the Chemical Business segment was allocated 4.20 billion yuan. The company had set aside 7.15 billion yuan for the Marketing and Distribution segment. The company also spent 1.22 billion yuan on its scientific research facilities and IT projects.
Zacks Rank
Sinopec currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Natural Gas Services Group Inc. NGS, Matrix Service Co. MTRX and ReneSola Ltd SOL. All these stocks sport a Zacks Rank #1 (Strong Buy).
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Click to get this free report CHINA PETRO&CHM (SNP): Free Stock Analysis Report MATRIX SERVICE (MTRX): Free Stock Analysis Report RENESOLA LT-ADR (SOL): Free Stock Analysis Report NATURAL GAS SVC (NGS): Free Stock Analysis Report To read this article on Zacks.com click here.