Xin Lang Cai Jing·2025-10-31 12:29Core Viewpoint - The company reported a decline in revenue and net profit for the first three quarters of 2025, with a slight recovery in Q3, indicating a mixed performance amid fluctuating oil prices and production challenges [1][4]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 312.5 billion yuan, down 4.1% year-on-year; net profit attributable to shareholders was 102 billion yuan, down 12.6% year-on-year; and non-recurring net profit was 100.9 billion yuan, down 12.9% year-on-year [1]. - In Q3 2025, the company reported revenue of 104.9 billion yuan, up 5.7% year-on-year and 4.1% quarter-on-quarter; net profit attributable to shareholders was 32.4 billion yuan, down 12.2% year-on-year and 1.6% quarter-on-quarter; non-recurring net profit was 31.6 billion yuan, down 13.9% year-on-year and 2.4% quarter-on-quarter [1]. Production and Pricing - The company achieved a net oil and gas production of 578 million barrels of oil equivalent in the first three quarters, an increase of 6.7% year-on-year, with oil production at 445 million barrels (up 5.4%) and natural gas production at 7.775 billion cubic feet (up 11.6%) [2]. - In Q3 2025, net oil and gas production was 194 million barrels of oil equivalent, down 1.1% quarter-on-quarter, with oil production at 149 million barrels (down 1.1%) and natural gas production at 2.613 billion cubic feet (down 0.7%) [2]. - The average realized oil price in Q3 2025 was $66.62 per barrel, with a Brent crude discount of $1.55 per barrel, indicating a narrowing discount compared to previous periods [2]. Cost Management - The company reported a barrel of oil equivalent cost of $27.35 in the first three quarters, down $0.79 year-on-year, while Q3 cost was approximately $28.16, up $1.31 quarter-on-quarter [3]. - The company maintained a period expense ratio of 3.12% in the first three quarters, down 0.03 percentage points year-on-year, primarily due to changes in the USD exchange rate [3]. - Operating cash flow for the first three quarters was 141.7 billion yuan, down 6% year-on-year, with Q3 cash flow at 62.6 billion yuan, up 21% quarter-on-quarter [3]. Capital Expenditure and Future Outlook - Capital expenditure for the first three quarters was 86 billion yuan, down 9.8% year-on-year, with exploration, development, and production expenditures showing mixed trends [3]. - The company plans capital expenditure of 125 to 135 billion yuan for 2025, expecting stable cash flow to support dividend levels [3]. - Due to declining oil price expectations, the company revised its profit forecasts for 2025-2027, with projected profits of 129.8 billion, 134.4 billion, and 138.1 billion yuan, corresponding to PE ratios of 10X, 10X, and 9X respectively [4].