Sinopec (600028) Third Quarterly Report Review: Exploration and Development Keep Profitable

Sinopec (600028) Third Quarterly Report Review: Exploration and Development Remain Profitable Refining Continues Gradually

The event company issued a report for the third quarter of 2019, and achieved operating income of 22,333 in the first three quarters.

50,000 yuan, an increase of 7 in ten years.

73%, the net profit attributable to shareholders of the parent company was 432.

81 ‰, a decrease of 27 per year.

8%; operating income of 7343 in the third quarter.

09 billion, down 4 every year.

97%, net profit attributable to shareholders of the parent company was 119.

43 trillion, a reduction of 35 a year.

02%.

Opinions Exploration and development business continued to improve, and territorial oil and gas production continued to grow.

In the first three quarters of this year, territorial crude oil production increased by 0 each year.

1%, natural gas production is increasing by 8 per year.

4%.

Affected by rising gas prices and sales volume, the operating income of the exploration 北京夜网 and development segment was 87.

18 ‰, an increase of 97 per year.

9.9 billion, sector performance continued to improve.

Capital expenditure in the first three quarters was 347.

50,000 yuan, an increase of 75 in ten years.

8%, mainly for the construction of natural gas production capacity in Fuling, Weirong, Hangjinqi, Shengli, Northwest and other crude oil production capacity, the promotion of natural gas storage and transportation facilities and overseas oil and gas projects.

Domestic demand for refined oil products continues to grow, with abundant supplies of refined oil products and fierce competition.

Affected by the increase in premiums for overseas shipments, the increase in discounts on imported crude oil, and the depreciation of the RMB exchange rate, the operating income of the refining segment in the first 成都桑拿网 three quarters was US $ 22.5 billion, a decrease of half; the operating income of the marketing and distribution segment was 232.

4.5 billion US dollars, flat for one year; operating income of the chemical sector was 165.

600 million, down 30 a year.

8%.

The profit forecast is affected by the rise in both the volume and price of natural gas, and the exploration and development business is profitable. However, due to the impact of shore oil prices and exchange rates, the profit margin of the refining segment has decreased. Considering the company’s integration of oil and gas production and processing advantages, the company is expected to achieve attribution in 2019-2021.The net profit of shareholders of the parent company is RMB 532.566 billion, equivalent to EPS0.

44, 0.

47, 0.

51 yuan / share, corresponding to PE is 11, 11, 10 times, and continue to give “overweight” rating.

Risk reminder: The plunge in oil prices leads to upstream growth, inadequate natural gas demand and falling gas prices, increased domestic demand for refined oil products, and exchange rate risks.