As the global economy stabilizes and improves, demand for oil and natural gas has picked up significantly, and prices have risen sharply, which has led to a substantial increase in the efficiency of oil companies. Among them, PetroChina has the most significant improvement in efficiency due to its largest upstream sector.

On the evening of August 29, 2021, Sinopec released its first half performance report. So far, the three major oil companies' "transcripts" for the first half of the year have all been released. Among them, benefiting from the rise in oil and natural gas prices and the strong demand for downstream chemical products, Sinopec and PetroChina's profits have risen sharply, turning losses into profits in one fell swoop.

Sinopec's semi-annual report shows that the company's operating income in the first half of the year was 1.26 trillion yuan, a year-on-year increase of 22%, profit attributable to shareholders was 40 billion yuan, and earnings per share were 0.33 yuan, the best performance for the same period in the past three years, surpassing the level before the epidemic. Not to be outdone by PetroChina, the company's operating income hit 1.2 trillion yuan, a year-on-year increase of 28.8%. CNOOC's operating income was 110.233 billion yuan, a year-on-year increase of 47.8%.

Steadily improving

Experts said that the main reason for the improvement in profitability is that as the global economy stabilizes and improves, the demand for oil and natural gas has picked up significantly, and the price has rebounded sharply, which has led to a substantial increase in the efficiency of oil companies. Among them, PetroChina has the most significant improvement in efficiency due to its largest upstream sector. Data show that in the first half of the year, PetroChina turned losses into profits, with a profit of 53.036 billion yuan, and a loss of 29.986 billion yuan in the same period last year, the best semi-annual report in the past seven years.

In the first half of the year, global oil demand increased significantly. At the same time, under the influence of Saudi Arabia’s additional production cuts and OPEC’s supply management, oil supply did not increase much. These factors are combined with the impact of the super quantitative easing policies implemented by major countries in the world, and inflation expectations have risen, leading to a sharp rise in international oil prices. At the same time, natural gas prices rose rapidly and reached historical highs. Data show that natural gas prices in Asia have increased by 6 times in the past year, and in Europe they have risen by as much as 10 times in 14 months.

As far as Sinopec is concerned, due to its large business in the chemical sector, the strong demand for petrochemical products in the first half of the year has benefited a lot. Data show that Sinopec's refining sector profit rebounded strongly in the first half of the year, achieving operating income of 39.4 billion yuan. At the same time, due to the recovery of the epidemic, the profitability of the refined oil sales segment has increased significantly, achieving operating income of 16.1 billion yuan.

The semi-annual report shows that the three major oil companies have increased their investment in exploration and development and achieved great results. Sinopec announced that it has increased risk exploration in new areas and new areas in the first half of the year, made new discoveries in key basins, discovered 200 million-ton oil and gas fields in the Tarim Basin, and discovered large gas fields with reserves of 100 billion cubic meters in the Sichuan Basin. Major breakthroughs have been made in the exploration of continental shale oil in the Subei Basin. CNOOC Chairman Wang Dongjin said that while promoting the large-scale development of offshore wind power, the company will develop onshore photovoltaic power generation and onshore wind power. During the "14th Five-Year Plan" period, CNOOC's onshore photovoltaic and onshore wind power development target is no less than 5 million kilowatts.

Another trend shown in the semi-annual report is that the three major oil companies have accelerated their deployment of new energy and announced that they will substantially increase their investment in new energy in the future. According to Sinopec, it has built 20 hydrogen refueling stations in 14 provinces, autonomous regions and municipalities including Guangdong and Shanghai. It is expected that the number of newly developed hydrogen refueling stations will reach 100 this year, and 1,000 hydrogen refueling stations will be planned during the "14th Five-Year Plan" period. , And strive to build China's first hydrogen energy company. At the same time, during the "14th Five-Year Plan" period, 5,000 charging stations and 7,000 distributed photovoltaic power generation stations will be planned.

Keywords: new energy, engineering construction, engineering news, engineering construction information

According to industry insiders, in the second half of the year, demand for refined oil and natural gas is expected to remain stable, and demand for chemical products will also maintain a good momentum, but prices may fluctuate at a high level, and oil companies may still maintain good profits, but the possibility of a high fall is not ruled out.Editor/XuNing