Di Yi Cai Jing·2025-10-31 12:08Core 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].