China Petroleum & Chemical Corp.’s (SNP) share price is on the rise as crude trends higher and breaks the $60 mark.

Company Description

China Petroleum & Chemical Corp., through its subsidiaries, operates as an integrated oil, gas and chemical company in Hong Kong and China. The company was founded in 2000, is headquartered in Beijing and has a market cap of $72 billion.

Crude On the Move

With crude back on the upswing in the last few months, energy companies are once against moving into the spotlight, including China Petroleum & Chemical Corp., also known as Sinopec. The company’s first-quarter results, reported on Apr 28, were solid.

First-Quarter Results

The company’s net profit was up 85% from last year, totaling $1.6 billion, on higher oil prices and lower production costs. Sinopec also noted that its refining division’s profits surged in response to lower crude prices and higher domestic fuel prices.

Earnings Forecast

Sinopec said that it expects its earnings in the first half of the year to be up 50% from last year, with management saying that “The refining segment of Sinopec Corp.’s advantages in scale and cost, and the advantages in integration and management will be fully demonstrated.”

Estimates

The analysts are clearly bullish on Sinopec, with the next-year estimate recently jumping 69 cents to $8.89, a 63% earnings growth projection.

The Chart

Shares of SNP have been rallying since early March after bottoming out above $46, having since crossed the $84 mark. Take a look below.

Zacks Investment Research

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