Most popular Sinopec buys daylight energy company

2022-08-18
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Sinopec's 13.4 billion yuan purchase of daylight energy company was accused of being expensive

13.4 billion yuan

Sinopec () made another move. On October 10, the international petroleum exploration company, a wholly-owned subsidiary of China National Petroleum and Chemical Corporation, signed an agreement with Canada's daylight energy company (daylight energy company) before applying antirust engine oil. It will purchase 100% of the shares of daylight energy company at C $10.08 per share. The purchase consideration is about C $2.2 billion, about 13.4 billion yuan

it is understood that the above transactions still need to be approved by the shareholders' meeting of daylight and the regulatory approval of the Chinese government and the Canadian government

if this transaction goes ahead, it is another large overseas acquisition by Sinopec after last year's US $4.65 billion acquisition of the 9.03% equity held by ConocoPhillips in the Oil Sands joint venture of Canadian synthetic crude oil company

in its previously released report, Andersen Securities believes that the future performance risk of Sinopec lies in the rise in crude oil prices and the obstruction of overseas business expansion. Some analysts believe that the acquisition will help to improve Sinopec's upstream capacity and make up for the gap between its refining capacity and crude oil capacity

"for Sinopec, compared with the other two oil companies, crude oil production is Sinopec's weakness, and its refining capacity is the first among the three, and the demand gap for crude oil is still relatively large." Dongxiucheng, an energy economist and director of the national oil and gas industry development research center of the China University of petroleum in Tongling Copper based new material industry base, told China Economic Weekly (Weibo)

2x share price acquisition

10.08 Canadian dollars, the purchase price per share is equivalent to the weighted average trading price premium of solar energy's common stock in the past 60 days of 43.6%, which is more than twice the share price premium on the trading day before the signing of the agreement. The rationality of Sinopec's purchase price has been questioned by the market

an industry analyst who has investigated Sinopec told China Economic Weekly that whether the acquisition price is beneficial to Sinopec mainly depends on the resource reserves owned by sunlight energy company

according to the data, daylight is a Canadian oil exploration and development company, which was listed on the stock exchange (day-tsx) in Toronto before the use of metal impact testing machine in 2004. The company's core oil and gas assets are located in Northwest Alberta, Canada and northeast British Columbia, mainly distributed in 69 oil and gas fields. In the first half of 2011, the average equity production of daylight company was about 38000 barrels of oil equivalent/day

the seller is obviously satisfied with the price. Anthony Lambert, President of sunlight energy, said that this transaction shows that the oil and gas asset portfolio based on light oil and natural gas established by the company in Alberta and British Columbia is very attractive

however, in an interview with the media, Huang Wensheng, director of Sinopec's board of directors and spokesman, believed that the premium of Sinopec's offer was not too high, which was based on the fact that the average share price of solar energy company in the past three months was C $8.52 per share. In contrast, Sinopec's offer was also about 20% higher than its average share price premium

the above-mentioned industry analysts who have investigated Sinopec also told that in recent months, the international oil price has fallen continuously, and the stock price of the Canadian oil and gas industry has generally been depressed by the decline of oil price and debt level. Although the purchase price has a large premium over its share price, it is also basically reasonable in reflecting the level of real value

in fact, in recent years, oil companies with state-owned assets have high difficulty and cost in obtaining resources abroad. The above analysts said that at present, high-quality oil and gas resources are basically preempted by international oil and gas giants, and the competition for the remaining resources is becoming increasingly fierce. At the same time, the acquisition of oil and gas resources is often more sensitive and involves political factors

dongxiucheng reminded that premium acquisition is normal in the M & A operation of energy companies, but Sinopec needs to make a cost and risk assessment. Whether the acquisition can bring benefits mainly depends on the judgment of crude oil price trend in the future

layout of upstream resources

in the past year, Sinopec's performance has been greatly affected by the sharp rise in the international crude oil market price. Dongxiucheng told China Economic Weekly that compared with PetroChina and CNOOC, Sinopec has the best refining and chemical capacity, but its upstream crude oil production capacity does not match its refining and chemical capacity, and sometimes it even needs to buy crude oil from the other two companies

some analysts pointed out that Sinopec has a single business model and high costs. Its main business is onshore oil refining, which basically does not involve the exploitation and exploration of onshore and offshore oil. Due to the limited domestic resources at present, Sinopec is bound to go overseas if it wants to further expand its business

"as China's largest oil refining enterprise and chemical product manufacturer, Sinopec is highly dependent on crude oil. Overseas acquisitions will help improve its upstream asset allocation." The above petrochemical industry analysts believe that

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