Sinopec (SNP) breaks off talks to invest in Russian projects – March 29, 2022

0

China Petroleum and Chemical Corporation (SNP Free Report), also known as Sinopec, has halted negotiations to invest in a major petrochemical plant and gas marketing company in Russia in response to the country’s invasion of Ukraine, according to a report by Reuters.

The severe sanctions imposed by the West have exposed weaknesses in Russia. As a result, Sinopec suspended talks to invest up to $500 million in the country’s new gas chemical plant. In view of the Ukraine crisis, the company does not see any immediate risk of impairment of its assets in Russia.

Sinopec planned to work with Sibur, Russia’s largest petrochemical producer, on a project similar to the $10 billion Amur gas chemical complex in eastern Siberia. Amur, which is expected to come online in 2024, is owned by Sinopec and Sibur. However, Sinopec decided to scrap the project after it was discovered that Sibur’s minority shareholder, Gennady Timchenko, had been sanctioned by the West for his alleged ties to Putin.

Sinopec has also suspended negotiations on the gas marketing venture with Novatek amid concerns that one of Novatek’s shareholders is on the latest US sanctions list. In 2019, Novatek, the largest independent natural gas producer in Russia, entered into an agreement to establish a joint venture with Sinopec and Gazprombank to commercialize LNG and natural gas in China.

The Chinese government is skeptical about the country’s companies violating sanctions imposed by various Western countries. It is urging companies to exercise caution when investing in Russia, its second-biggest oil supplier and third-biggest supplier of natural gas. In particular, Sinopec has set up task forces on Russia-related matters and is working on business disruption contingency plans and against secondary sanctions.

company profile

Headquartered in Deyang, China, Sinopec is a leading integrated energy company engaged in the exploration, production and transportation of petroleum products. It is the largest refiner and marketer of refined petroleum products in China.

Zacks Rank & Other Stocks to Consider

The company currently has a Zack rank of #2 (Buy).

Investors interested in the energy sector might check out the following companies that currently sport a Zacks #1 rank (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks can be found here.

PBF Energy Inc. (PBF Free Report), based in New Jersey, is a leading crude oil refiner. PBF has one of the most complex refining systems in the United States with an overall Nelson Complexity Index score of 12.8.

PBF Energy’s 2021 earnings are expected to grow 168% year over year. In 2021, the Refining segment’s revenue was $27,202 million and contributed nearly 99% of the Company’s total revenue. The logistics segment generated a profit of $355.5 million, accounting for 1% of PBF’s revenues in 2021.

Western Petroleum (OXY Free Report) is an integrated oil and gas company with significant exploration and production exposure. At the end of 2021, OXY’s Interim Global Proved Reserves totaled 3.51 billion BOE, compared to 2.91 billion BOE at the end of 2020.

Occidental’s 2021 earnings are expected to grow 106.7% year over year. As of December 31, 2021, OXY had cash and cash equivalents of $2,764 million compared to $2,008 million for the corresponding period in 2020. On February 10, 2022, the Company’s Board of Directors approved a share repurchase program for a maximum amount of $3 billion and no set term restrictions, replacing the previously approved share repurchase program.

Devon Energy Corp (dvn Free Report) is an independent energy company principally engaged in the exploration, development and production of oil and natural gas. At the end of 2021, Devon had proven developed and undeveloped reserves of nearly 1,625 million barrels of oil equivalent (MMboe), up from 752 MMboe at the end of 2020.

Devon’s profit for 2022 is expected to increase by 88.7% year-on-year. The Company’s Board of Directors has approved an increase in the dividend rate to $1, payable to shareholders on March 31, 2022. Management has approved variable and fixed dividends for shareholders to further enhance shareholder value.

Share.

Comments are closed.