China National Offshore Oil Corporation Limited (CNOOC), China National Petroleum Corporation (CNPC), and China Petrochemical Corporation (Sinopec) have all revealed their mid-year performance with a decrease in both revenue and net profit.
CNOOC, as a pure upstream oil and gas exploration and development enterprise, reported a business revenue of 207.608 billion yuan in the first half of the year, an 8% year-on-year decline. The net profit attributable to shareholders reached 69.533 billion yuan, down by 13%.
Aside from CNOOC, both CNPC and Sinopec are facing significant performance pressure as well.
CNPC registered an operating income of 1.45 trillion yuan in the first half of the year, a decrease of 6.7% compared to the same period last year. The net profit attributable to shareholders was 84.007 billion yuan, down by 5.4%. This marks the first time in nearly five years that CNPC has experienced a negative growth in net profit. The company explained that the decrease in revenue was mainly due to the comprehensive impact of declining crude oil and refined oil prices, as well as changes in the sales volume of oil and gas products.
Sinopec recorded an operating income of approximately 1.41 trillion yuan in the first half of the year, a significant decrease of 10.6% year-on-year. The net profit attributable to shareholders plummeted by 39.8% to 21.483 billion yuan. The company attributed the sharp decline in performance to the continued low prices of crude oil and products, resulting in inventory impairment losses, coupled with the continuous decline in domestic sales volume and price differentials of gasoline and diesel.
Data shows that in terms of domestic refined oil sales volume, CNPC saw a slight increase of 0.3% year-on-year, while Sinopec’s overall sales volume decreased by 3.4%.
The mid-year financial reports of these three major oil and gas companies in China reflect the challenges they are facing amidst a complex market environment characterized by fluctuating global oil prices and changing demand dynamics.