Thomas Hilboldt's questions to CHINA PETROLEUM & CHEMICAL (SNPMF) leadership • Q3 2017
Question
Thomas Hilboldt asked for context on gas prices falling while oil prices rose, an update on the non-fuel marketing business's performance and capital strategy, and clarification on whether the future dividend payout would be maintained above 50% or revert to the historical 40% range.
Answer
An executive explained the drop in the reported gas price was due to exchange rate effects, stating prices in RMB terms are stable and higher than peers. On the non-fuel business, the company continues to invest, focusing on its own brands and 'Internet+' initiatives, which are not capital-intensive. Regarding the dividend, an executive noted the recent payout was above 50% and, given the strong cash flow, the company has a strong intention to maintain a relatively high payout level, subject to board approval.