Core Insights - China National Petroleum Corporation (CNPC) has recently obtained a new invention patent titled "An Emulsified Oil Displacement Composition and Its Application in Low Permeability Oil Reservoirs" with the application number CN202310937792.4, authorized on October 31, 2025 [1] - The patent describes an emulsified oil displacement composition that includes extensible surfactants, betaine surfactants, additives, and water, which can achieve ultra-low interfacial tension and controllable emulsification strength, with a cost controlled under 10,500 yuan per ton, indicating significant application potential in low permeability oil reservoirs [1] - In 2023, CNPC has received 1,493 new patent authorizations, a decrease of 14.54% compared to the same period last year [1] - For the first half of 2023, CNPC invested 9.899 billion yuan in research and development, reflecting a year-on-year increase of 2.51% [1] - CNPC has made investments in 1,291 companies and participated in 443 bidding projects, with a total of 107 trademark registrations and 47,132 patent records [1]

Core Insights - Southbound funds increased their holdings in China Petroleum & Chemical Corporation (00857.HK) by 1.374 million shares on October 31, 2025, marking a total net increase of 69.826 million shares over the past five trading days [1] - Over the last 20 trading days, southbound funds have net increased their holdings by 254 million shares, with 16 days of net buying activity [1] - As of now, southbound funds hold a total of 7.113 billion shares of China Petroleum, representing 33.7% of the company's total issued ordinary shares [1] Trading Data Summary - On October 31, 2025, total shares held were 7.113 billion, with a change of 1.374 million shares, reflecting a change of 0.02% [2] - On October 30, 2025, total shares held were 7.112 billion, with a change of 4.344 million shares, reflecting a change of 0.06% [2] - On October 28, 2025, total shares held were 7.108 billion, with a change of 12.528 million shares, reflecting a change of 0.18% [2] - On October 27, 2025, total shares held were 7.095 billion, with a change of 19.778 million shares, reflecting a change of 0.28% [2] - On October 24, 2025, total shares held were 7.075 billion, with a change of 31.802 million shares, reflecting a change of 0.45% [2] Company Overview - China Petroleum & Chemical Corporation primarily engages in the production and distribution of oil and gas, operating through five main segments: oil and gas exploration, refining and chemicals, sales, natural gas sales, and headquarters and other services [2]

Core Points - China Petroleum & Chemical Corporation (Sinopec) has conducted share buybacks, with the latest occurring on October 31, where it repurchased 3.652 million shares at a price range of HKD 4.110 to HKD 4.170, totaling HKD 15.1248 million [1] - The stock closed at HKD 4.130 on the same day, reflecting a 0.24% increase, with a total trading volume of HKD 472 million [1] - Since October 30, the company has repurchased shares for two consecutive days, totaling 8.428 million shares and an aggregate buyback amount of HKD 34.8477 million, during which the stock has seen a cumulative decline of 2.13% [2] Buyback Summary - Year-to-date, Sinopec has executed 23 buyback transactions, repurchasing a total of 179 million shares for an aggregate amount of HKD 809 million [3] - Detailed buyback transactions include: - October 31: 365.20 thousand shares at a maximum price of HKD 4.170 and a minimum price of HKD 4.110, totaling HKD 15.1248 million - October 30: 477.60 thousand shares at a maximum price of HKD 4.220 and a minimum price of HKD 4.100, totaling HKD 19.7230 million - September 26: 453.00 thousand shares at a maximum price of HKD 4.070 and a minimum price of HKD 4.050, totaling HKD 18.4045 million [3]

Core Insights - The decline in international oil prices has significantly impacted the performance of China's major oil companies, known as the "Big Three" [2] - For the first three quarters, China Petroleum, China National Petroleum, and China National Offshore Oil Corporation reported net profits of 29.984 billion yuan, 126.279 billion yuan, and 101.971 billion yuan, respectively, representing year-on-year declines of 32.2%, 4.9%, and 12.6% [2] - The average price of crude oil sold by China Petroleum fell by 14.7% to $65.55 per barrel, while China National Offshore Oil's average price dropped by 13.6% to $68.92 per barrel, contributing to revenue declines in their oil and gas segments [2][3] Financial Performance - The combined net profit of the "Big Three" decreased by over 35 billion yuan compared to the previous year, equating to a daily loss of approximately 3.8 million yuan [2] - Despite the drop in oil prices, the profit decline for China Petroleum and China National Offshore Oil was less severe than the price drop due to effective cost management and operational efficiency [3] - China Petroleum's oil and gas equivalent production increased by 2.6% to 1,377.2 million barrels, with unit operating costs decreasing by 6.1% to $10.79 per barrel [3] Natural Gas Segment - China National Offshore Oil reported a nearly 12% increase in natural gas production, significantly outpacing overall production growth, with natural gas sales revenue rising by 15.2% [3] - The average price of natural gas sold by China National Offshore Oil increased by 1% to $7.86 per thousand cubic feet, contributing positively to its financial performance [3] Downstream and Chemical Business - The downstream oil product sales and refining chemical sectors of China Petroleum and China Petrochemical are facing challenges due to decreased market demand and falling prices [3] - China Petroleum's chemical business reported an operating profit of 1.787 billion yuan, a year-on-year decline of 50%, while China Petrochemical's chemical segment experienced a pre-tax loss of 8.223 billion yuan, widening by nearly 68% [4] Industry Trends and Strategic Shifts - The peak demand for gasoline in the Chinese market was reached in 2023, with expectations of a significant decline post-2030, impacting the overall oil product demand [5] - In response to the pressures from renewable energy, the "Big Three" are accelerating their diversification into non-oil businesses [5] - China Petrochemical aims to transform into a comprehensive energy service provider by expanding into natural gas, hydrogen, and electric vehicle charging services [5] - China Petroleum is also focusing on integrating oil and gas exploration with renewable energy development, emphasizing the construction of comprehensive energy stations [5]

Core Viewpoint - The article discusses the significant impact of declining international oil prices on the performance of China's major oil companies, referred to as the "Three Barrels of Oil" (China Petroleum, Sinopec, and CNOOC), highlighting their financial results and strategic responses to the changing market conditions [3][4]. Financial Performance - In the first three quarters, China Petroleum, Sinopec, and CNOOC reported net profits of 29.984 billion yuan, 126.279 billion yuan, and 101.971 billion yuan, respectively, representing year-on-year declines of 32.2%, 4.9%, and 12.6% [3]. - The combined net profit of these companies decreased by over 35 billion yuan compared to the previous year, equating to a daily loss of approximately 380 million yuan [3]. - The average price of crude oil for China Petroleum fell by 14.7% to $65.55 per barrel, while CNOOC's average price dropped by 13.6% to $68.92 per barrel, leading to revenue declines in their oil and gas segments [3][4]. Operational Efficiency - Despite the decline in profits, China Petroleum and CNOOC managed to limit their profit drops compared to the oil price decline due to effective cost management and operational efficiency [4]. - China Petroleum's oil and gas equivalent production increased by 2.6% to 1,377.2 million barrels, with unit operating costs decreasing by 6.1% to $10.79 per barrel [4]. - CNOOC's net production rose by 6.7% to 578.3 million barrels of oil equivalent, with costs per barrel down by 2.8% to $27.35 [4]. Natural Gas Segment - The natural gas segment showed positive growth, with CNOOC's natural gas production increasing by nearly 12%, significantly outpacing overall production growth [5]. - The average price of natural gas rose by 1% to $7.86 per thousand cubic feet, contributing to a 15.2% increase in natural gas sales revenue [5]. Downstream Business Challenges - The downstream oil product sales and refining sectors faced challenges due to declining market demand and falling prices for key petroleum and petrochemical products [5]. - China Petroleum's chemical business saw operating profits drop by 50%, while Sinopec's chemical segment reported a pre-tax loss of 8.223 billion yuan, widening by nearly 68% year-on-year [5]. Strategic Shifts - In response to the pressures from the renewable energy sector, the "Three Barrels of Oil" are accelerating their diversification into non-oil businesses [6]. - China Petroleum plans to develop a comprehensive energy service model focusing on oil, gas, hydrogen, electricity, and services, while Sinopec is investing in electric vehicle charging infrastructure and clean energy operations [6]. - Both companies are emphasizing the integration of oil and gas exploration with renewable energy development, aiming to enhance their positions in the evolving energy landscape [6].

Core Insights - The "Three Barrel Oil" companies (China Petroleum, Sinopec, and CNOOC) experienced a significant decline in net profits in the first three quarters, totaling over 35 billion yuan, primarily due to falling international oil prices [1][2] Group 1: Financial Performance - China Petroleum reported a net profit of 126.28 billion yuan, down 4.9% year-on-year, while Sinopec and CNOOC reported net profits of 29.98 billion yuan and 101.97 billion yuan, down 32.2% and 12.6% respectively [1] - The combined net profit decline of over 35 billion yuan translates to a daily loss of approximately 380 million yuan [1] Group 2: Oil Price Impact - The average price of crude oil for China Petroleum fell by 14.7% to $65.55 per barrel, leading to an 8.3% decrease in oil and gas revenue to 622.39 billion yuan [1] - CNOOC's average price for crude oil decreased by 13.6% to $68.92 per barrel, resulting in a 5.9% drop in oil and gas sales revenue to 255.48 billion yuan [1] Group 3: Production and Cost Management - China Petroleum's oil and gas equivalent production increased by 2.6% to 1,377.2 million barrels, with unit operating costs decreasing by 6.1% to $10.79 per barrel [2] - CNOOC's net oil and gas production rose by 6.7% to 578.3 million barrels of oil equivalent, with costs per barrel down by 2.8% to $27.35 [2] Group 4: Natural Gas Performance - CNOOC's natural gas production increased by nearly 12%, significantly outpacing the overall growth rate of the company's oil and gas production [2] - The average price of natural gas for CNOOC rose by 1% to $7.86 per thousand cubic feet, contributing to a 15.2% increase in natural gas sales revenue [2]

Core Insights - The company reported a revenue of 21,693 billion, a year-on-year decrease of 3.9%, and a net profit of 1,263 billion, down 4.9% year-on-year for the first three quarters of 2025 [1] - In Q3 2025, the company achieved a revenue of 7,192 billion, an increase of 2.3% year-on-year and 3.2% quarter-on-quarter, with a net profit of 423 billion, down 3.9% year-on-year but up 13.7% quarter-on-quarter [1] - The overall gross margin for Q3 2025 reached 21.5%, an increase of 0.8 percentage points quarter-on-quarter, indicating improved profitability [1] Production and Pricing - The company's oil and gas production reached 137.7 million barrels of oil equivalent in the first three quarters, a year-on-year increase of 2.6%, with crude oil production at 71.4 million barrels, up 0.8% [2] - The average oil price for the first three quarters was 65.55 USD per barrel, a decrease of 14.7% year-on-year, while Q3 2025 saw an estimated oil price of approximately 64.2 USD per barrel, up 1.9 USD from the previous quarter [2] - The upstream segment reported an operating profit of 125.1 billion, down 13% year-on-year, but is expected to maintain a good performance due to cost reduction and efficiency improvements [2] Refining and Chemical Sector - The company processed 104.1 million barrels of crude oil in the first three quarters, a year-on-year increase of 0.4%, while the production of refined oil products was 89.59 million tons, down 0.4% [3] - The refining segment achieved an operating profit of 16.2 billion, up 6.3% year-on-year, with refining business profits increasing by 22.7% [3] - The chemical business, however, saw a significant decline in profits, down 48.9%, indicating challenges in that segment [3] Sales Performance - The total sales of refined oil products reached 120.876 million tons, a year-on-year increase of 0.8%, while domestic sales were 89.64 million tons, up 0.05% [4] - The sales segment reported an operating profit of 11.6 billion, down 9.9% year-on-year, reflecting pressure on refined oil sales [4] - Natural gas sales reached 2,185 billion cubic feet, up 4.2% year-on-year, with domestic sales at 1,709 billion cubic feet, up 4.9% [4] Future Outlook - The company maintains profit forecasts for 2025-2027 at 156.1 billion, 160.6 billion, and 166.9 billion, corresponding to PE ratios of 11X, 10X, and 10X, respectively, and maintains a "buy" rating [4]

Investment Rating - The report maintains a "Buy" rating for China Petroleum (601857) [5] Core Views - The company's performance exceeded expectations, with a stable development in the natural gas business [5] - The overall revenue for the first three quarters of 2025 was 2,169.256 billion yuan, a year-on-year decrease of 3.9%, while the net profit attributable to shareholders was 126.3 billion yuan, down 4.9% year-on-year [5] - The company achieved a gross margin of 21.5% in Q3 2025, reflecting a 0.8 percentage point increase quarter-on-quarter [5] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 2,969.207 billion yuan, with a year-on-year growth rate of 1.1% [4] - The net profit attributable to shareholders for 2025 is projected to be 156.142 billion yuan, representing a year-on-year decrease of 5.2% [4] - Earnings per share for 2025 is estimated at 0.85 yuan [4] - The company’s oil and gas production reached 1.377 billion barrels of oil equivalent in the first three quarters, a year-on-year increase of 2.6% [5] - The average oil price for Q3 2025 was approximately 64.2 USD per barrel, reflecting a quarter-on-quarter increase of 1.9 USD [5] Operational Insights - The refining segment showed improvement, with a processing volume of 1.041 billion barrels of crude oil in Q3 2025, a year-on-year increase of 0.4% [5] - The sales of refined oil products reached 12.0876 million tons in the first three quarters, a year-on-year increase of 0.8% [5] - The natural gas sales volume was 218.5 billion cubic feet, up 4.2% year-on-year, with a significant profit increase of 23.8% in the natural gas sales segment [5]

Core Viewpoint - The "Three Barrel Oil" companies in China are facing significant profit declines due to the ongoing drop in international oil prices, prompting a strategic shift towards comprehensive energy services including oil, gas, hydrogen, and electricity [2][5]. Financial Performance - In the first three quarters, China Petroleum, China National Petroleum, and China National Offshore Oil Corporation reported net profits of 29.984 billion yuan, 126.279 billion yuan, and 101.971 billion yuan respectively, reflecting year-on-year declines of 32.2%, 4.9%, and 12.6% [2]. - The combined net profit decrease exceeded 35 billion yuan compared to the previous year, averaging a loss of approximately 3.8 billion yuan per day [2]. - The average selling price of crude oil for China Petroleum fell by 14.7% to $65.55 per barrel, while China National Offshore Oil's average selling price dropped by 13.6% to $68.92 per barrel, impacting their oil and gas revenue [2][3]. Operational Efficiency - Despite the profit declines, the reduction in net profit for China Petroleum and China National Offshore Oil was less severe than the drop in oil prices, attributed to effective cost management and operational efficiency [3]. - China Petroleum's oil and gas equivalent production increased by 2.6% to 1,377.2 million barrels, with unit operating costs decreasing by 6.1% to $10.79 per barrel [3]. - China National Offshore Oil's net production rose by 6.7% to 578.3 million barrels of oil equivalent, with costs per barrel down by 2.8% to $27.35 [3]. Natural Gas Segment - The natural gas segment showed positive growth, with China National Offshore Oil's natural gas production increasing by nearly 12%, significantly outpacing overall production growth [3]. - The average price of natural gas rose by 1% to $7.86 per thousand cubic feet, leading to a 15.2% increase in natural gas sales revenue [3]. Downstream Business Impact - The downstream oil product sales and refining chemical businesses of China Petroleum and China Sinopec are facing challenges due to declining market demand and falling prices of key petroleum and petrochemical products [3][4]. Chemical Business Challenges - The chemical business is experiencing reduced profit margins due to the continuous release of new production capacity, with China Petroleum's chemical operations reporting a profit of 1.787 billion yuan, halving year-on-year, while China Sinopec's chemical sector faced a pre-tax loss of 8.223 billion yuan, widening by nearly 68% [4]. Strategic Shift Towards New Energy - In response to the pressures from new energy on traditional markets, the "Three Barrel Oil" companies are accelerating their non-oil business development [5]. - China Sinopec plans to focus on stabilizing oil, expanding gas, promoting hydrogen, increasing electricity, and strengthening services, aiming to transform into a comprehensive energy service provider [5]. - China Petroleum's president emphasized the construction of integrated energy stations and the integration of oil and gas exploration with new energy development [5].

中 國 石 油 天 然 氣 股 份 有 限 公 司 PETROCHINA COMPANY LIMITED ( 在中華人民共和國註冊成立的股份有限公司 ) (股份代號: 857) 出席 2025 年第一次臨時股東會回條 致：中國石油天然氣股份有限公司（「本公司」） 地址為 日期： 2025 年 月 日 簽署： 本人/吾等 1 （須與股東名冊上所載的相同）（電話號碼 2為 ） 乃 股 3本公司股本中每股面值人民幣 1 元的 A 股/H 股 4的註冊持有人。 本人/吾等擬出席（親身或委派代表）於 2025 年 12 月 18 日（星期四）上午 9 時正在中國北京市朝陽區 北四環中路 8 號北京北辰五洲皇冠國際酒店舉行之本公司 2025 年第一次臨時股東會及其任何延期召開 的會議，特此通知。 附註： 收集個人資料聲明 閣下是自願提供 閣下的姓名及地址，以用於處理 閣下出席（親身或委派代表）本公司股東會的相關事宜（「該等用 途」）。我們可能向就上述該等用途為本公司提供行政、電腦及其他服務的代理人、承辦商或第三方服務供應商，以及其 他獲法例授權而要求取得有關資料的人士或其他與上述所列出的該等用途有關以及需要接收有關資料之 ...