Falling Oil Price Took its Toll on Sinopec’s Earnings

August 29, 2016

Falling oil price has claimed another victim, and this time it’s Sinopec — one of the world’s second largest oil refiner. The company’s interim profit plunged 21.6 percent, while operating losses climbed to 21.9 billion yuan. For a closer look at the story and other relevant ones in the financial markets, read on.

Sentifi Top Attentions August 29

1/ Sinopec Ltd: Low oil price hurts earnings

The strong gains in Sinopec’s downstream refining and chemical activities were offset by the ever-troublesome issue in the oil industry: falling oil price. Its net profit was down 21.6 percent, total turnover dove 15.6 percent and operating profit plunked 13.3 percent. Falling earnings notwithstanding, the company remains positive about its second-half outlook. It points to the steadiness of China’s economic growth, which it believes will benefit the growth of domestic demand for refined oil products and petrochemical products.

2/ Southwest Airlines: One of its jets makes forced landing

A Southwest Airlines jet flying from New Orleans to Orlando, Florida, had to make an emergency landing after an unknown mechanical issue caused lost pressure in the cabin. No casualty or injure was reported.

3/ Herbalife Ltd: May have misled investors

Herbalife's accusation has pushed it to Sentifi Top Attentions August 29.
Herbalife is accused of misleading investors about its outlook, which further dampens the company’s image. (EPA)

The company was accused of being untruthful about its future in its filings with the U.S. SEC compared to the presentation it gave to analysts and investors. The controversy came after the company agreed to restructure its business after being accused of running a pyramid scheme. Following the settlement, which also included a $200 million fine, the company hosted an quarterly earnings conference call where it assured investors it will thrive under the new rules, all of which was declared “purposefully deceptive statements” by an investor after having looked into its SEC filings.

4/ Free Trade: TTIP is declared dead by German Vice-Chancellor

German Vice-Chancellor Sigmar Gabriel confirmed the failure in the deal negotiations because Europe has been reticent to open its agricultural industry to low-cost American products. Plus, concerns over the degradation of the labor standards and the ability of an unelected cabal to dictate policy over the sovereign bodies have made participating countries reluctant to advance the conversations.

5/ Opera: Bitcoin integration is under consideration

The popular web browser Opera may consider integrating bitcoin into its web browser after its implementation of a build-in Adblock in Opera led the Bitcoin community to reconsider the implementation of micropayments in web browsers. The Adblock feature allows Opera to improve the efficiency of ad blocking and boosts the loading speed to 90 percent faster than competitors, creating an ideal environment for cryptocurrencies.

6/ Janet Yellen: Markets may be wobbly on her’s rates comment

Janet Yellen and her rate statement have made it to Sentifi Top Attentions August 29.
Janet Yellen assures that a rate hike is still a possibility for this year. (CNN Money)

Fed Chairwoman made a comment on Friday that an rate hike remains on the cards this year, which will likely lead to a wobbly opening of the markets. The conditions for a rate hike have started to emerge. A lot of jobs are being created. The economic growth is likely to continue at a moderate pace. And Yellen seems quite assured that a rate hike will happen this year.

7/ BYD Company Ltd: Shares increase 3 percent following strong profit forecast

The Chinese automaker boldly predicted an up to 91 percent profit increase in the first three quarters of the year thanks to government policies boosting green car sales. Following the positive outlook, its shares jumped 3 percent in Hong Kong and 1.3 percent in Shenzhen.

8/ Carlyle Group LP: Sells solar power plant to South Korean company

Korea Electric Power Corp (KEPCO) made its first entry into the U.S. after acquiring a solar power plant from U.S.-based Carlyle Group’s Cogentrix Solar Holdings. KEPCO will operate the plant — which is located in Colorado — by this October. The two companies also formed a cooperative relationship to develop in independent power producer business, renewable energy business and other types of energy business.

9/ BHP Billiton: SEC paid company’s insider for information on a bribery case

The SEC has paid $3.75 billion to a whistleblower at the company for providing detailed information in an alleged bribery case involving Asian and African officials. This is the first time an employee of an Australia company has claimed a U.S. whistleblower bounty.

10/ Negative Rates: Fed turns its back on negative rates

The Fed said it won’t adopt negative interest rates to boost anemic economics, which has been tried by Japan and much of Europe. Instead, the regulators say the possibility of a rate hike still exists, and that if it happened, it would be in the remaining of this year.

Cover Image: Kevin Lee/Bloomberg — Getty Image

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