Di Yi Cai Jing·2025-08-28 00:39Core Viewpoint - The "Big Three" oil companies in China are accelerating their non-oil business expansion in response to declining profits from their core oil operations due to falling international oil prices [2][5]. Financial Performance - In the first half of the year, the "Big Three" reported a total net profit decline of 290.5 billion yuan, equivalent to a daily loss of nearly 1.6 billion yuan, with individual profits of China National Petroleum Corporation (CNPC) at 840.1 billion yuan, Sinopec at 214.8 billion yuan, and CNOOC at 695.3 billion yuan, reflecting year-on-year decreases of 5.4%, 39.8%, and 13% respectively [2][3]. - Revenue for the "Big Three" also fell between 5% to 11%, with CNPC experiencing a rare dual decline in both revenue and net profit for the first time in five years [2][3]. Oil Price Impact - The average crude oil price for CNPC was $66.21 per barrel, down 14.5% year-on-year, while CNOOC's average price was $69.15 per barrel, down 13.9% [3]. - CNPC's oil and gas segment revenue decreased by 6.3% to 422.67 billion yuan, accounting for 30% of total revenue, while CNOOC's oil and gas sales revenue fell by 7.2% to 171.75 billion yuan, making up 83% of total revenue [3]. Natural Gas Performance - Both CNPC and CNOOC saw growth in natural gas sales, with CNPC's average sales price increasing over 5% to 2,334 yuan per ton and sales volume rising nearly 3% to 1.515 million tons [3]. - CNOOC's natural gas average price rose 1.4% to $7.9 per thousand cubic feet, with sales volume increasing 13.5% to 4.892 trillion cubic feet, leading to a 16% increase in natural gas revenue to 27.75 billion yuan [3]. Downstream Business Challenges - The downstream oil product sales and refining businesses of CNPC and Sinopec were significantly impacted by falling prices and sales volumes of oil and petrochemical products [4]. - CNPC's chemical business profit dropped 55.5% to 1.392 billion yuan, while Sinopec's chemical division reported a loss that widened by 33.5% to 422.4 million yuan [4]. Strategic Shift to Non-Oil Business - The "Big Three" are focusing on non-oil business development due to the peak oil demand in the transportation sector and the anticipated decline in overall oil demand by 2028 [5]. - CNPC plans to expand into new energy and materials, reporting a 70% increase in wind and solar power generation to 3.69 billion kilowatt-hours, and a 50% increase in new materials production to 1.665 million tons [5]. - CNOOC aims to increase green electricity usage and has initiated a carbon capture and utilization project [5][6].