Profits fell by up to 40%. Overseas mergers and acquisitions of "three barrels of oil" became the mainstream.
profits fell by up to 40%. Overseas mergers and acquisitions of "three barrels of oil" became the mainstream.
China Construction Machinery Information
Guide: on August 27, Sinopec released its results, achieving an operating revenue of 1348.1 billion yuan in the first half of the year, an increase of 9.3% year-on-year; The net profit attributable to shareholders of the company was 23.67 billion yuan, with basic income and diluted earnings per share of 0.273 yuan and 0.263 yuan respectively. This net profit level fell by 41.2% compared with the same period last year On August 27, Sinopec released its performance, achieving an operating revenue of 1348.1 billion yuan in the first half of the year, an increase of 9.3% year-on-year; The net profit attributable to shareholders of the company was 23.67 billion yuan, with basic income and diluted earnings per share of 0.273 yuan and 0.263 yuan respectively. This net profit level decreased by 41.2% compared with the same period last year
so far, the interim reports of "three barrels of oil" have been disclosed, and the interim reports of three companies show that the profits in the first half of the year have declined. It is noteworthy that behind the decline in performance, the cash flow of these three companies also fell sharply. "It shows the weakness of its follow-up investment ability." Some analysts believe that
the decline in cash flow was mainly due to the increased investment in overseas oil projects by the three major oil companies. "Domestic crude oil production and reserves have passed the peak. If overseas investment and mergers and acquisitions are not carried out and reserves are not expanded, the long-term development of the three companies in the future will be increasingly restricted." On the same day, an internal expert of PetroChina said, "when the global economy is poor, it should be the time for us to choose the best investment projects."
fierce debate on overseas expansion
the interim report shows that China's oil supply is 62.02 billion yuan (0.34 yuan/share), down 6%, due to the serious soil hardening and water eutrophication caused by the excessive use of fertilizers; CNOOC () was 31.87 billion yuan, down 19%; Sinopec only 23.67 billion yuan (0.27 yuan/share), down 41.2%
all three barrels of oil said that due to the impact of inadequate domestic energy prices and a series of shutdown accidents, their performance declined in the first half of this year. "However, the sharp decline in cash flow is certainly not caused by inadequate prices, at least not the main reason". The analyst said
the statement shows that PetroChina's operating cash flow per share was only 0.26 yuan/share, down 62.8%; Sinopec also fell by 33.4%. After CNOOC cut its dividend by 40%, its cash flow still fell
"since the 2008 financial crisis, Chinese oil companies have begun to expand overseas significantly, and they are also found in energy hot spots such as Iraq, Canada, Australia and North Africa." The analyst said
in order to achieve the "overseas production target of 200 million tons", especially the production of Iraq's three major oil fields, PetroChina has made large-scale investment in Iraq since 2009. By August this year, PetroChina has achieved a stable production of 1.6 million barrels/day in Iraq; In Australia, Sinopec invested US $1.762 billion to participate in aplng coalbed methane project, and won a 7.6 million ton/year LNG purchase contract at one stroke; This time, CNOOC has thrown out a US $15.1 billion acquisition of Nixon, becoming the largest overseas acquisition case of Chinese enterprises
"at present, the global oil industry is contracting to cope with the impact of the financial crisis. Only Chinese oil companies dare to bargain, even if the purchase price is not ideal." The above analysts pointed out
another PetroChina insider, who should never be greased, said, "money is not a problem."
in his view, the Chinese government has sufficient foreign exchange reserves. Under the background that the degree of dependence on foreign oil is close to 60%, it is a rational choice to support Chinese oil companies controlled by the government to seek the bottom overseas; "Even from the perspective of the company, China's domestic market is still the fastest growing energy market in the world, which also provides a good support for our active overseas expansion."
according to him, it is the overseas expansion of Chinese oil companies that has not caused any problems in the supply of the domestic energy market against the backdrop of China's halving the import of Iranian crude oil this year. In 2011, Iran was the second largest source of China's crude oil imports - while Saudi Arabia, Angola, Russia and other "major oil suppliers" this year are areas actively invested by PetroChina, Sinopec and CNOOC
the helplessness behind the expansion
"the reason why China has to go out is that our local production has been unable to meet the needs of domestic economic development." The above PetroChina experts said
according to the customs data released on August 21, in the first seven months of this year, China imported more than 160 million tons of crude oil, an increase of 10.2% year-on-year, and spent $134.2 billion in foreign exchange, an increase of 20% year-on-year
160 million tons, which is equivalent to twice China's crude oil imports in 2003, close to China's total crude oil production that year. "China's crude oil production has been hovering around 200 million tons for ten consecutive years. Without the application of tertiary oil recovery and other technologies, it is possible that the local production will fall to 180 million tons or even lower." According to him, in order to maintain an output of 200 million tons, Daqing Oilfield, which has produced more than 50million tons for 27 consecutive years, has adopted a variety of new oil production technologies such as water flooding and microbial flooding. The deep formation of oil and gas storage is to vigorously improve the efficiency of automotive fuel, significantly reduce emissions and energy consumption, while reaching 7000 meters in Tarim Oilfield. At present, the deepest drilling is close to 10000 meters
"the investment of each new technology means a substantial increase in costs, which many multinational oil companies do not do from economic considerations. Instead, why not invest in other oil-rich regions in the world and import them back home?" He said: "in Iraq and other places, tertiary oil recovery and other technologies are not useful at all. The oil layer is less than kilometers underground, and some oil wells can still maintain spontaneous blowout."
since Chinese oil companies have only entered the international energy market in recent years, their investment cannot be resisted by the first mover and have to accept the "premium" of the suzerain country
in Iraq, multinational oil companies such as ExxonMobil initially expected to set the oil field exploitation service fee at around $20/barrel, but through bidding, PetroChina finally received a service fee of $2 per barrel; Similarly, "aplng is definitely expensive to calculate simply from the investment cost among shareholders", an Australian energy enterprise senior told; Li Fanrong, CEO of CNOOC, also admitted that the $15.1 billion acquisition of Nixon "fully reflects its fundamentals, and the current premium should be reasonable compared with the industry"
the above PetroChina experts said that only by going out first and gaining a firm foothold in the international energy market can Chinese oil enterprises have a future. "Blindly sticking to short-term factors such as price will only make us more and more passive"
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