SHANGHAI: Total net profits of China’s three oil giants exceeded 280 billion yuan (RM181bil) during the first nine months, a record high for the period, according to the companies’ recent financial reports.
Boosted by strong global energy prices as well as expanding oil and natural gas output, January-September revenue of China National Petroleum Corp (CNPC) rose 30.6% year-on-year to 2.46 trillion yuan (RM1.59 trillion), while profit surged 60% to 120 billion yuan (RM77.78bil).
China National Offshore Oil Corp Ltd’s (CNOOC) revenue hit 265.8 billion yuan (RM172bil) over the period, up 67.6%, while profit surged to 108.7 billion yuan (RM70.45bil), up 105.9%.
However, as demand for major chemical products has been weak due to high crude oil prices and Covid-19, China Petrochemical Corp, also known as Sinopec and the world’s largest refiner by volume, saw its net profit fall 5.6% in the first nine months to 56.66 billion yuan (RM36.72bil).
An analyst said that the surging profits for CNPC (PetroChina) and CNOOC are expected to continue over the near term with rising domestic energy demand.
The country’s oil majors have been expanding their exploration and development efforts and optimising the operation of oil and gas (O&G) industrial chains to ensure stable O&G supplies in recent years, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.
Coordinated efforts have been made to maintain stable production and operations, which is especially important against the backdrop of escalating geopolitical tensions and fallout from the Covid-19 pandemic, Luo said.
“With the upcoming heating season, steady and sufficient domestic energy supply is especially important considering overseas market volatility,” he added. PetroChina’s domestic crude oil output increased 2.7% year-on-year during the first nine months to 577 million barrels, while gas output was up 5.1% to 3.296 trillion cubic feet. — China Daily/ANN
