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Sinopec Raises Dividend

Sinopec Raises DividendSinopec Raises Dividend

China Petroleum & Chemical Corp. raised its dividend payout after half-year earnings jumped to a record, fueled by improving refining profits and a rebound in crude prices that brought its oil and gas exploration unit closer to breaking even.

The world’s biggest refiner by capacity, known as Sinopec, proposed an interim dividend of 0.16 yuan a share, a 60% increase from the previous year, it said on Sunday in stock exchange filings, Bloomberg reported.

Net income rose 52% to 42.4 billion yuan ($6.2 billion) in the first six months. That’s the best half-year profit on record, according to data compiled by Bloomberg dating back to 2000.

The dividend increase suggests “Sinopec may be willing to share the good returns with investors,” Morgan Stanley said in a note, adding that the company will probably maintain full-year dividend at 0.5 yuan, implying a yield of 7% to 8%. “We believe the company will maintain stable recurring earnings, as Brent oil price stays in the $65-75 a barrel range.”

 

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