- Sinopec (NYSE:SNP) plans to raise capex by more than 17% this year after posting its best annual earnings since 2013, as 2017 net income rose 10% Y/Y to 51.1B yuan ($8.1B) and revenues rose 22% to 2.36T yuan.
- SNP says it is allocating 117B yuan in capital spending for 2018, up from an actual spend of 99.38B yuan last year, including a 55% jump in upstream spending to 48.5B yuan, as China’s biggest refiner looks to take advantage of the recent rally in oil prices to $70/bbl.
- Rival PetroChina (NYSE:PTR) last week said it also would increase capex in 2018, by 3.5%.
- SNP expects to produce 290M barrels of crude oil in 2018, or ~795K bbl/day, down slightly from 293.7M barrels in 2017 and would mark its fourth straight annual decline in oil production; it expects to produce 974.1B cf of natural gas, up 6.8% Y/Y.
- The company also proposes paying a record high total dividend of 0.5 yuan/share for 2017, the most since its listing in 2000
- Now read: Carrizo Oil & Gas: Expecting 20% To 25% Exit Rate Production Growth
Original article