- Sinopec offers a consensus forward FY 2020 dividend yield of 6.4% with special dividends expected in 2H 2020 thanks to the pipeline asset divestment, but potential asset write-downs could complicate matters.
- The inclusion of CNOOC on a list of companies linked to the Chinese military puts geopolitical risks for Chinese oil majors like Sinopec in the spotlight.
- Sinopec's share price has done well in the past few months, thanks to the positive surprise associated with Saudi Arabia committing to reduce oil production for February and March 2021.
- Sinopec trades at consensus forward FY 2020 and FY 2021 P/E multiples of 14.3 times and 10.0 times, respectively.
For further details see:
Sinopec: Special Dividends And Geopolitical Risks In The Spotlight